Briefly describe, “EDP Application Controls”

Auditing and Assurance Revision Questions and Answers

Answer
The purpose of EDP application control is to establish separate control procedures over the accounting applications in order to provide reasonable assurance that all transactions are authorized and recorded and are processed completely, accurately and on a timely basis.

EDP application controls include:

I Controls over input: to provide reasonable assurance that.

 Transaction are properly authorized before being processed the computer.
 Transaction are accurately converted onto machine readable from and recorded in the computer date files.
 Transaction are not lost, added, duplicated or improperly changed,
 Incorrect transactions are rejected, corrected and, if necessary, resubmitted on a timely basis.

II. Control over Processing and computer data files:

 Transaction are properly processed the computer
 Transaction are not lost, added, duplicated or improperly changed.
 Processing errors are identified and corrected on a timely basis.

III. Control over Output:
 Results of processing are accurate.
 Access to output is restricted to authorized personnel.
 Output is provided to appropriate authorized personnel.
 Output is provided to appropriate authorized personnel on timely basis.



(Visited 119 times, 1 visits today)
Share this on:

Leave a Reply

Your email address will not be published.