General And Application Controls Vocab.

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Definition of Responsibilities

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: Descriptions of tasks for each job function within a trans-action processing system. Beginning and termination points for each job function should be clearly indicated, as should the relationship of job functions to each other. Example: The computer operator has restricted access to programs and data files.

Front 2

Relaibility of Personnel

Back 2

Personnel performing the processing may be relied on to function in a consistent manner. Example: The supervisor of computer operations has a good attendance record and a good performance record.

Front 3

Training of Personnel

Back 3

Personnel are provided explicit instructions and tested on their understanding before being assigned new duties. Example: All new programmers attend a 5-day training seminar before beginning duties.

Front 4

Competence of Personnel

Back 4

Persons assigned to processing or supervisory roles in transaction processing systems have the technical knowledge necessary to perform their functions. Example: The director of data processing is an MBA.

Front 5

Rotation of duties

Back 5

Jobs assigned to people are rotated periodically at irregularly scheduled times, if possible, for key processing functions. Example: Responsibility for the destruction of sensitive data is rotated among clerical personnel.

Front 6

Forms Design

Back 6

Forms are constructed to be self-explanatory, understandable, and concise and to gather all necessary information with a minimum of effort. Example: The form to authorize a purchase has clear and concise instructions for each field in which data are to be entered

Front 7

Prenumbered forms

Back 7

Sequential numbers on individual forms are printed in advance to allow subsequent detection of loss or misplacement. Example: Checks are prenumbered

Front 8

Preprinted forms

Back 8

Fixed elements of information are entered on forms in advance and sometimes in a format that permits direct machine processing to prevent errors in entry of repetitive data. Example: MICR account encoding on checks and deposit ticket

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Simultaneous Preperation

Back 9

The one-time recording of a transaction for all further processing, using multiple copies, as appropriate, to prevent transcription errors. Example: A one-write system is used to prepare a receiving report form and receiving register simultaneously

Front 10

Turnaround Document

Back 10

A computer-produced document that is intended for resubmission into the system. Example: The part of a utility bill that the customer returns with payment.

Front 11

Documentation

Back 11

Written records for the purpose of providing communication. Example: Standard journal entries communicate the accounting data to be sup-plied by various operating departments.

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Labeling

Back 12

The identification of transactions, files, or other items for control purposes. Example: All computer files have an external label

Front 13

Authorization

Back 13

Limits the initiation of a transaction or performance of a process to selected individuals. Example: Only the timekeeper may submit payroll hours data for processing

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Approval

Back 14

The acceptance of a transaction for processing after it is initiated. Example: An officer of the company approves the payroll before it is distributed to employees.

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Formatted Input

Back 15

Automatic spacing and format shifting of data fields during data input to a recording device. Example: The computer automatically inserts commas into the numbers that are input by clerks using data terminals

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Endorsement

Back 16

The marking of a form or document to direct or restrict its further processing. Example: Checks are restrictively endorsed “Pay only to the order of ABC Company” immediately on receipt.

Front 17

Cancellation

Back 17

Identifies transaction documents in order to prevent their further or repeated use after they have performed their function. Example: Marking bills as “paid” to pre-vent duplicate payment.

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Exception input

Back 18

Processing proceeds in a predefined manner unless specific input transactions are received that indicate special processing with different values or in a different sequence. Example: Overtime hours are input on special forms.

Front 19

Passwords

Back 19

The authorization to allow access to data or processing by providing a code or signal known only by authorized individuals. Example: An automatic bank terminal requires that a user enter his or her password before processing is initiated.

Front 20

Anticipation

Back 20

The expectation of a given transaction or event at a particular time. Example: Daily cash deposits are always made at 3:00 P.M

Front 21

Transmittal Document (Batch Control Ticket)

Back 21

The medium for communicating control totals over movement of data, particularly from source to processing point or between processing points

Front 22

Batch Serial Numbers ( Batch Sequence)

Back 22

Batches of transaction documents are numbered consecutively and accounted for. Example: Sales tickets are batched daily, numbered, and filed by date.

Front 23

Control Register (Batch Control Log)

Back 23

A log or register indicating the disposition and control values of batches of transactions. Example: A register is used to record the time and batch control number of express mail that is picked up by courier services.

Front 24

Amount Control Total

Back 24

Totals of homogeneous amounts for a group of transactions or records, usually dollars or quantities. Example: Total net pay is an amount control total for a payroll processing application.

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Document Control Total

Back 25

A count of the number of individual documents. Example: A count of the number of time cards is a document control total for a payroll application.

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Line control Count

Back 26

A count of the number of lines of data on one or more documents. Example: A count of the number of individual products sold (i.e., a line) on invoices is a line control count for a sales order application.

Front 27

Hash Total

Back 27

A meaningless total that is useful for control purposes only. Example: Total department number of all paychecks processed is a meaningless total that is useful for control purposes only.

Front 28

Batch Control (Batch Totals)

Back 28

Any type of control total or count applied to a specific number of transaction documents or to the transaction documents that arrive within a specific period of time. Example: Total sales dollars is a batch control total for a billing application.

Front 29

Visual Verification

Back 29

The visual scanning of documents for general reasonableness and propriety. Example: Clerks visually scan each invoice before submitting the document for further processing

Front 30

Sequence Checking

Back 30

A verification of the alpha-numeric sequence of the “key” field in items to be processed. Example: Prenumbered checks are sorted in sequence for further processing.

Front 31

Overflow Checks

Back 31

A limit check on the capacity of a field, file, or device. Example: The number 12345 cannot be entered into a four-digit, numeric field.

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Format Check

Back 32

Determination that data are entered in proper mode—numeric or alphabetic—in fields. Example: Vendor number is checked to ensure that all characters in the field are numeric.

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Completeness Check

Back 33

A test that ensures that fields cannot be processed in a blank state. Example: A voucher will not be processed if the “vendor number” field is blank.

Front 34

Check Digit

Back 34

A digit that is a function of the other digits within a record or number used for testing an accurate transcription. Example: An account number contains a check digit that is validated during processing.

Front 35

Reasonableness Test

Back 35

Tests applied to various fields of data through comparison with other information available within the transaction or master records. Example: A male patient should not be billed for services by the gynecology department of a hospital.

Front 36

Limit Check

Back 36

A test to ensure that only data within predetermined limits will be entered into and accepted by the system. Example: A test ensures that rate per hour cannot be lower than the minimum set by law or higher than the maximum set by union contract.

Front 37

Validity Check

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The characters in a coded field are either matched to an acceptable set of values in a table or examined for a defined pattern of format, legitimate subcodes, or character values, using logic and arithmetic other than tables. Example: All Social Security numbers should have nine numeric digits.

Front 38

Readback

Back 38

Immediate return of input information to the sender for comparison and approval. Example: A computer echoes messages received from a data terminal back to the terminal for visual verification.

Front 39

Dating

Back 39

The recording of calendar dates for purposes of later comparison or expiration testing. Example: Customer remittances are stamped with the date received.

Front 40

Expiration

Back 40

A limit check based on a comparison of current date with the date recorded on a transaction, record, or file. Example: Checks to vendors are dated and marked “void after 60 days.”

Front 41

Key Verification

Back 41

Reentry of transaction data with machine comparison of the initial entry to the second entry to detect errors. Example: A second clerk keys payroll into a computer. The computer compares this input, character by character (i.e., key by key) to the initial input of the data by the first clerk and reports differences.