Automated application controls examples (Accounting aud finance)

 IT Application controls: 

Automated application controls examples
Automated application controls examples

IT submission Manage classically function at a business course rank and be valid to the dispensation of the announcement in personality submission (e.g. sales or buy or operating cost).

Application Manage helps to make sure that dealings are properly official, precisely process, and time spread.

Examples of IT submission Manage:

Following are the main categories of IT submission Manage:

Manage over Input

Manage over Processing

Manage over Output

Manage over Master folder/reputation Data

Examples of IT Application Controls:

Manage over Input

Use of Log-in identification and code word for the worker.

Approval of source credentials (used for input)

Basis Data mechanization (e.g. Use of Bar Codes)

Data Validation Control

Boundary Experiment (A confirmation to make sure that a numerical worth does not surpass some prearranged worth).

Series/sensibleness Examination (A check to make sure that a geometric rate does not go down outside the prearranged variety of standards e.g. pay of workers drop within 10,000 to 25,000)

Sequence Examination (A make sure to ensure that all entrances in a batch of input information are inappropriate algebraic succession e.g. there is no absent obtain demand)

Survival examination (A check to make sure that a code/number survives by looking up the code in the applicable documentation e.g. whether a dealer survives.)

Arrangement/Field examination (A check to guarantee that format of facts in a countryside is moreover alphabet or numeric or alphanumeric e.g. that there are no alphabets in a sales demand number countryside).

Make sure-digit (A make sure-digit is a digit that is intended in an arithmetical way from the unique code and then is extra to the end of the code as additional-digit e.g. to notice transposition fault.

Manage over dispensation

Control Totals:

 It may be a figure of the Number of dealings or assessment of dealings on a consignment/folder.

A physically intended number/value of proceedings is in contrast with the number/worth of confirmation procedure by PC to guarantee that they agree”

 Limit examination.

 Range examination.

On-Screen Prompts:

On-screen punctual are used to make sure that a deal is not left partly processed.

Scratch a folder as interpret only.

Checkpoint and upturn measures.

Manage over productivity.

Constraint on the produce of confidential reports.

Delivery of report limited to pertinent/authorized employees only.

An allocation log should be reserved (i.e. when a report was equipped, list of its proposed beneficiary, and acknowledgment of receiver)

Audit pursue

Exemption cleverness presentation data that does not obey the rules to particular principle.

Manage over Master folder/status data

Record-calculate in a master folder

Regular inform to master archive.

Appraisal of the master folder by the organization.


Data Encryption:

Encryption is the process of convert

There are two methods of encryption:

1. Symmetric (in which some keys are worn to encrypt and decrypt facts.)

2. Asymmetric (in which dissimilar keys are used to encrypt and decrypt statistics this is occasionally known as a community-personal key)

There are two types of symmetric encryption i.e. Block nobody (in which a flat length slab is encrypted)

Stream secret message (in which the facts are encrypted one 'information unit'. classically 1 byte, at a time in the same order it was gain in.


Auditing About Computers:

 “Auditing about Computers” means that the customer’s ‘interior’ software is not audited.

Auditor agrees with inputs of the scheme with productivity and contrasts real production with predictable production.

This scheme of auditing boosts audit danger because:

The actual records and agenda of the computer scheme are not experienced.

The auditor has no straight confirmation that the agenda is working as documented.

Where faults are found in integration contribution to production, it may be hard or even unfeasible to decide how those mistakes happen.

Auditing Through Computers:

“Auditing from first to last on Computers” means that the auditor uses a variety of methods.

(e.g. CAATs) to assess customer’s mechanized in order scheme to decide dependability of its process (along with its production).”


Computer support Audit methods (CAATs): CAATs are the use of workstation methods by auditors to execute measures and attain audit-proof.

1. Examination Data (used as Management of Examination).

2. Inspection Software’s (used as Substantive events)

Uses of CAATs by Auditor:

CAATs are frequently executing by auditors where adequate audit track is not obtainable, or auditor wants to confirm the accurateness and wholeness of dispensation e.g.

1. In the theater experiment of Manage e.g. to make sure wholeness of auction/obtain demand.

2. To make sure exactness and wholeness of agenda supplied by customer (e.g. earnings, decrease)

3. In logical events (e.g. in discrepancy study, wages ratios).

4. In exampling (e.g. stratification, taster choice).

5. In the discovery of strange items.

Automated application controls examples
Automated application controls examples

Advantages of CAAT:

1.   Enables auditor to examination agenda controls (i.e. “reviewer through computers”) and not just duplicate or printouts.

2. Enable auditors to examine a large quantity of data truthfully and totally.

3. Reduce the Rank of human mistakes in executing audit measures.

4. Reduces hard work on routine work and gives chance to focus on the condemnatory region.

 Disadvantages of CAAT:

1. Luxurious to set up (High speculation needed for communications and preparation of staff).

2. Need collaboration of the customer.

Post a Comment