Scribd
Upload
24 views19 pages

SU5 - IT General and Application Controls Part 3

The document discusses application controls for information technology (IT) systems. It defines application controls as controls within a specific application, like sales or debtors, that help ensure transactions are valid, accurate, and complete. The document outlines key components of application controls like input, processing, output, and masterfile changes. It also distinguishes between manual and computerized application controls, providing examples of each. Finally, it describes different types of input controls for IT systems around user authentication, screen layout, data validation, and input testing.

Uploaded by

kegomoditswebubbles
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
24 views19 pages

SU5 - IT General and Application Controls Part 3

The document discusses application controls for information technology (IT) systems. It defines application controls as controls within a specific application, like sales or debtors, that help ensure transactions are valid, accurate, and complete. The document outlines key components of application controls like input, processing, output, and masterfile changes. It also distinguishes between manual and computerized application controls, providing examples of each. Finally, it describes different types of input controls for IT systems around user authentication, screen layout, data validation, and input testing.

Uploaded by

kegomoditswebubbles
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 19

GEAR111

Study Unit 5: Information Technology


(IT) General andApplication Controls
Part 3: Application Controls 1
English Only | Copyright © 2023 Edition | North-West University, Raymond Cramer
Auditing Fundamentals, page 150-151

Classification of
computer controls:
❑ Accounting system: manual and computerised
❑ Risks in the IT environment
❑ Management’s response to risks
❑ Two broad categories in IT environment:
▪ General Controls
▪ Application controls

English Only | Copyright © 2023 Edition | North-


West University, Raymond Cramer
2
Auditing Fundamentals, page 169

Application Controls
❑ Application = program performs task
❑ Manual and computerised controls
❑ Within a particular application (e.g., sales, debtors)
❑ Initiated, recorded, processing and output
❑ Provide reasonable assurance that recorded transactions are:
❑ Valid
❑ Accurate
❑ Complete
English Only | Copyright © 2023 Edition | North-
West University, Raymond Cramer
3
Auditing Fundamentals, page 169

Application Controls
❑ Primary objective:
❑Toprevent, or detect and correct misstatements
arising when a transaction is:
❑ Input
❑ Processed
❑ Output generated

English Only | Copyright © 2023 Edition | North-


West University, Raymond Cramer
4
Auditing Fundamentals, page 170-171

Application Controls
❑ Key components of applicationcontrols:
❑Input: Capturing, recording, initiation of information
❑Processingof data with computer
❑Distribution of outputs
Masterfile
❑Changes to Masterfile data. changes

Input Processing Output

English Only | Copyright © 2023 Edition | North-


West University, Raymond Cramer
5
Auditing Fundamentals, page 171

Manual vs computer
controls
❑ Manual and computerised application controls:
❑ Independent manual controls
❑Example
❑ IT-dependent manual controls
❑Example
❑ Programmed (automated) controls
❑Example
❑ Table 5.2 in Auditing Fundamentals: Comparison between
control activities in manual and computerised environment
English Only | Copyright © 2023 Edition | North-
West University, Raymond Cramer
6
Auditing Fundamentals, page 171

Input controls

❑ Ensure data entered (incl. Masterfile changes)


❑Valid, accurate, and complete
❑ Risks if not implemented?
❑ Accounting process:

Input Processing Output


Includes

Masterfile amendments
English Only | Copyright © 2023 Edition | North-
West University, Raymond Cramer
7
Auditing Fundamentals, page 173

Input controls:

❑ Focuses on people using the information system


❑ User-related controls include:
❑ Training
❑ Dedicated employees
❑ Accountability
❑ User profiles
❑Username (user identification)
❑User authentication (passwords)
❑ Segregation of duties
English Only | Copyright © 2023 Edition | North-
West University, Raymond Cramer
8
Auditing Fundamentals, page 174

Input controls:

❑ Controls build into the system and reflect on the screen


❑ Controls include:
❑ Screen-layout
❑ Document layout
❑ Standard and user friendly
❑ Minimum data to be captured
❑ Data echo test/closed-loop verification
❑ Prompt and user dialogue
❑ Compulsory fields
English Only | Copyright © 2023 Edition | North-
West University, Raymond Cramer
9
Easy to
follow
Screen
layout

Standard
and user
friendly

English Only | Copyright © 2023 Edition | North-


West University, Raymond Cramer
10
Minimum Standard and
data to be user friendly
captured

11
Data echo test / closed-loopverification

Standard and
user friendly

12
CompulsoryFields

Screen
dialogue

13
Input controls: Auditing Fundamentals, page 174

❑ Application controls that test the data entered against


pre-determined rules.
❑ Controls include:
❑Limit test (range check)
❑Field length test
❑Completeness test
❑Alpha-numeric tests / numeric character test
❑Sign check
English Only | Copyright © 2023 Edition | North-
West University, Raymond Cramer
14
Completeness test
/ Mandatory fields

Field length test


15
Limit Test / Range check
Limit Test /
Range check
Alphabetic / alphanumeric /
numeric character tests
Homework:
❑ Complete the e-Fundi test & quiz (2023 GEAR111 - Study
unit 5 (test 3)) on the "GEAR111 assessments 2023" site
(DEADLINE - 21 March 2024 @ 23:00PM (evening)):

❑ Complete and submit the homework Assignment on the


"GEAR111 assessments 2023" site (DEADLINE - 21
March 2024 @ 23:00PM (evening)).

English Only | Copyright © 2023 Edition | North-


West University, Raymond Cramer
19

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy