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Application controls in confirmation technology are designed to ensure the integrity of the accounting records. They relate to procedures used to initiate, record, process and report transactions...

      

Application controls in confirmation technology are designed to ensure the integrity of the
accounting records. They relate to procedures used to initiate, record, process and report
transactions or other financial data.

  

Answers


Kavungya
I. A missing field's check:
This control checks that all important data fields are present and are of the right length. For
example, a transaction should have a date and the date should be eight characters.
2. A valid character check
This checks that data fields appear to be of the right type e.g. all alphabetic, all numeric or
mixed. This checks that data appears to be correct. For example, the date should be numeric and
a description should be alphabetic.
3. Limit or reasonableness checks
This checks that data falls within predetermined reasonability limits, ensures that data that is
manifestly wrong will not be processed. Thus it checks that the net amount, the VAT amount and
the gross amount appear to be reasonable.
4. Master file checks
This control checks that codes match those on the master files. It ensures that data can he
processed against the master file. Thus, the program will compare the supplier's code number on
the invoice with the creditor's master file and confirm that there is such a number in that master
file
5. Documents count
This agrees the number of record input in batch with the total batch control farm. In the case, the
program will keep track of order numbers goods received note numbers and produce a missing
documents list such as unaccounted for purchase
Kavungya answered the question on May 15, 2019 at 08:17


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