Acca aa s21 Notes

Application controls
are "designed to ensure the integrity of the accounting records" (ie transactions 
occurred, are authorised and completely and accurately processed and recorded). They may be:
๏
Manual or automated
๏
Preventative or detective.
Examples of specific applications include sales, purchases, wages and salaries. You need controls 
over:
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The initiation of input
๏
Recording the transactions
๏
Processing of transactions
๏
Reporting output
September 2021 to June 2022 exams
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2. Input controls
Control over input is particularly important as once a transaction gets into a computerised system, 
often there is no further human intervention. Therefore, if incorrect data is input, there is a high 
chance that it will be processed to its conclusion. Think GIGO ('garbage in, garbage out').
Input controls generally aim to ensure completeness (C) and/or accuracy (A). Methods include:
๏
Sequence checks (C)
Checking the completeness of a sequence of pre-numbered 
documents before they are input and processed.
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Edit checks (A)
Examining the data for content and format to identify unfeasible 
or otherwise incorrect data. Edit checks include range checks (the 
input has to be within a certain range of values), format checks 
(eg every account number is six digits long), dependency checks 
(so that a date like 31/2 would not be permitted, check digits 
(where numbers are specially constructed to obey certain 
mathematical rules).