a) Application controls
These are control procedures over the accounting system designed to provide
reasonable assurance that all transactions are authorised, recorded and
processed completely, accurately on timely basis. Application controls may be
manual or programmed and are include
? Controls over input
? Controls over processing
? Controls over output
? Controls over master files and standing data.
~General controls
These are controls which relate to the environment within which computer
based accounting systems are developed, maintained and operated aimed at
providing reasonable assurance that the overall objectives of internal controls are
achieved. These controls could either be manual or programmed.
General controls include
? Controls over systems development and maintenance
? Controls over data files
? Computer operations controls
? Controls to ensure continuity operation.
b) Importance of system documentation.
i. Provides a basis for management to review the system prior to authorisation
ii. Staff training on the use of system.
iii. Implements smooth personnel changes and avoiding the problem that key
employees may take with them all knowledge about the way the system works.
iv. Revising existing systems and programs
v. It is useful to the auditor for preliminary evaluation of the system and of its
controls.
vi. Could assist in disaster recovery.
c) How and why both systems should run parallel prior to the change over to the
new system.
~How
The client should continue to process the information using the old system while
at the same time implement the new system. The output from the new system
should be compared with the output from the new system.
~Why
i. Parallel running assists in staff training. The users learn about the features of
the new system and compare this with the old system
ii. Assists in testing the new system.
Allows for the systems developers to make any necessary changes to the new system
before being fully implemented.
johnson mwenjera answered the question on August 4, 2018 at 12:21
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(b) What is the importance of...(Solved)
(a) Briefly explain the meaning of the term "control procedures".
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Date posted: August 4, 2018. Answers (1)
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Date posted: August 4, 2018. Answers (1)
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Required:
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Date posted: August 4, 2018. Answers (1)
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Required:
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Required:
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Required:
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Sh.
stock on 1st January 2007 48,000
Raw materials 9,800
work in...(Solved)
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Sh.
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finished goods 148,000
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factory insurance 400,000
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factory rent 200,000
cleaning costs 350,000
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stocks at 31st December 2007
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