Business Process & Application Controls

Front 1

Document Design

Back 1

source document is designed to make it easier to prepare the document initially and later to input data from the document into a computer or other input device.

Front 2

Written Approvals

Back 2

signature or initials on a document to indicate that someone has authorized the event. Ensures that the data input arises from a valid business event and that appropriate authorizations have been obtained.

Front 3

Preformatted Screens

Back 3

define acceptable format of each data field; provide drop-down lists of data that are acceptable for a given field; cursor may automatically move to the next field on the screen; require that certain fields be completed; automatically populate certain fields with data.

Front 4

Online Prompting

Back 4

request user input or ask questions that the user must answer.

Front 5

Populate Input Screens With Master Data

Back 5

clerk enters identification code for an entity and system retrieves data about that entity from the master data.

Front 6

Compare Input Data With Master Data

Back 6

comparisons performed manually or by the computer to determine the accuracy and validity of input data. Includes: input/master data match, Input/master data dependency check, input/master data validity and accuracy check

Front 7

Procedures for Rejected Inputs

Back 7

Designed to ensure that erroneous data are corrected and resubmitted for processing.

Front 8

Programmed Edit Checks

Back 8

automatically performed by data entry programs upon entry of the input data to highlight actual or potential input errors and allow them to be corrected quickly and efficiently. includes limit checks and reasonableness check.

Front 9

Document/Record has Totals

Back 9

Summerization of any numeric data field within the input document or record. calculated before and then again after entry of the document or record, this total can be used to determine that the applicable fields were entered accurately.

Front 10

Mathematical Accuracy Checks

Back 10

compare calculations performed manually to those performed by the computer to determine whether a document has been entered correctly.

Front 11

Check Digit

Back 11

checks the digits entered to make sure they are correct

Front 12

Confirm Input Acceptance

Back 12

data entry program informs the user that the input has been accepted for processing.

Front 13

Automated Data Entry

Back 13

strategy for the capture and entry of event-related data using technology such as OCR, bar codes, RFID, and EDI.

Front 14

Enter Data Closer to the Originating Source

Back 14

this is a strategy for the capture and entry of event-rlated data close to the place and time that an event occurs.

Front 15

Digital Signitures

Back 15

the technlgogy validates the identity of the sender and the integrity of an electronic message to reduce the risk that a communication was sent by an unauthorized system or user or was intercepted or modified in transit.

Front 16

Turnaround Documents

Back 16

document output by the computer used to capture and input a subsequent event.

Front 17

Key Verifivation

Back 17

input documents are keyed by one individual and then rekeyed by a second individual.

Front 18

Sequence Checks

Back 18

applied to sequentially numbered and prenumbered documents have been processed (completeness) and that no extra documents have been processed (completeness, if a duplicated document, or validity, if a bogus document).

Front 19

Cumulative Sequence Check

Back 19

provides input control in those situations in chich the serial numbers are assigned within the organization but are not entered in perfect

Front 20

Agree Run-To-Run Totals

Back 20

reconciling totals prepared before a computer process has begun to totals prepared at the completion of the computer process.

Front 21

Tickler File

Back 21

manual file of documents, or a computer file, that contains business event data that is pending further action.

Front 22

One-For-One Checking

Back 22

detailed comparison of the individual elements of two or more data sources to determine that they agree.

Front 23

The Control Matrix

Back 23

the control matrix is a tool designed to assist in analyzing the effectiveness of controls (PCAOB Auditing Standard Number 5 - "effectiveness of control design"). Establishes criteria to be used in evaluating the controls in a particular business process.

Front 24

Four Elements of the Control Matrix

Back 24

a. control goals b. recommended control plans c. cell entries d. explanation of cell entries

Front 25

Validity, Completeness, Accuracy

Back 25

pg 299 last 4 lines