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Chapter 10: Processing Integrity and Availability Controls - Coggle…
Chapter 10: Processing Integrity and
Availability Controls
Processing Integrity
INPUT CONTROLS
DATA ENTRY CONTROLS
range check
tests whether a numerical amount falls between predetermined lower and upper limits
size check
ensures that the input data will fit into the assigned field
limit check
tests a numerical amount against a fixed value
completeness check (or test)
verifies that all required data items have been entered
sign check
determines whether the data in a field have the appropriate arithmetic sign
validity check
compares the ID code or account number in transaction data with
similar data in the master file to verify that the account exist
field check
determines whether the characters in a field are of the proper type
reasonableness test
determines the correctness of the logical relationship between two data items
ADDITIONAL BATCH PROCESSING DATA ENTRY CONTROLS
sequence check
tests whether a transaction file is in the proper numerical or alphabetical sequence
Batch totals
calculate numeric values for a batch of input records
financial total
hash total
record count
CANCELLATION AND STORAGE OF SOURCE DOCUMENTS
Source documents that have been entered into the system should be canceled so they cannot be inadvertently or fraudulently reentered into the system
ADDITIONAL ONLINE DATA ENTRY CONTROLS
Prompting
the system requests each input data item and waits for an acceptable response, ensures that all necessary data are entered
Closed-loop verification
checks the accuracy of input data by using it to retrieve and
display other related information
FORMS DESIGN
Source documents and other forms should be designed to minimize the chances for errors and omissions
PROCESSING CONTROLS
Data matching
In certain cases, two or more items of data must be matched before an action can take place
File labels
File labels need to be checked to ensure that the correct and most current files are being updated
Cross-footing and zero-balance tests
Often totals can be calculated in multiple ways
Write-protection mechanisms
These protect against overwriting or erasing of data
files stored on magnetic media
Recalculation of batch totals
Batch totals should be recomputed as each transaction record is processed, and the total for the batch should then be compared to the values in
the trailer record
Concurrent update control
Errors can occur when two or more users attempt to update the same record simultaneously
OUTPUT CONTROLS
Reconciliation procedures
general ledger accounts should be reconciled to subsidiary account totals on a regular basis.
External data reconciliation
Database totals should periodically be reconciled with
data maintained outside the system
User review of output
Users should carefully examine system output to verify that it is reasonable, that it is complete, and that they are the intended recipients.
Data transmission controls.
Organizations also need to implement controls designed to
minimize the risk of data transmission errors
Checksums
Parity bits
ILLUSTRATIVE EXAMPLE: CREDIT SALES PROCESSING
PROCESSING CONTROLS
The system reads the header records for the customer and inventory master files and verifies that the most current version is being used
OUTPUT CONTROLS
Billing and shipping documents are routed to only authorized employees in the accounting and shipping departments
INPUT CONTROLS
As sales transactions are entered, the system performs several preliminary validation tests
Availability
MINIMIZING RISK OF SYSTEM DOWNTIME
Organizations can undertake a variety of actions to minimize the risk of system downtime
RECOVERY AND RESUMPTION OF NORMAL OPERATIONS
DATA BACKUP PROCEDURES
incremental backup
involves copying only the data items that have changed since
the last partial backup.
differential backup
copies all changes made since the last full backup
DISASTER RECOVERY AND BUSINESS CONTINUITY PLANNING
Backups are designed to mitigate problems when one or more files or databases become corrupted because of hardware, software, or human error
EFFECTS OF VIRTUALIZATION AND CLOUD COMPUTING
Virtualization can significantly improve the efficiency and effectiveness of disaster recovery and resumption of normal operations