Computerized accounting/financial systems still need internal controls to enhance the integrity of such systems. Explain four internal control procedures that need to be put in place...

      

Computerized accounting/financial systems still need internal controls to enhance the integrity of such systems. Explain four internal control procedures that need to be put in place to guarantee the integrity of such systems.

  

Answers


gregory
Internal control procedures:
1.Manual recalculations- a sample of transactions may be recalculated manually to
ensurethat processing is accomplishing the anticipated task.
2.Editing- an edit check is a program instruction or a subroutine that tests for
accurate,complete and valid input and updates in an application.
3.Programmed controls- software can be used to detect and initiate corrective action
forerrors in data and processing. For example, if the incorrect file or file version is provided
for processing, the application program could display messages instructing that the proper
file and version be used.
4.Exception reporting- an exception report is generated by a program that
identifiestransactions or data that appear to be incorrect. These items may be outside a
predetermined range or may not conform to specified criteria.
5. Sequence checking on data inputs- any control number out of sequence or
duplicatedare rejected or noted on an exception report for follow-up purposes.
6.Range checking on data inputs-this ensures that data is entered correctly and agrees
withvalid predetermined criteria. For example, a valid transaction code must be entered in
the transaction field.
7.Key verification on data inputs- the keying-in process is repeated by a separate
individualusing a machine that compares original keystrokes to the repeated keyed input.
For example, a worker‘s number can be keyed in twice to verify the keying process.
gregorymasila answered the question on November 23, 2017 at 12:35


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