Processing Integrity and Controls in Systems

Flashcards covering key terms and concepts related to processing integrity and controls in systems, designed for exam preparation.

Processing Integrity

Refers to the system's ability to produce accurate, complete, and timely information based only on authorized transactions.

Source Data Controls

Controls to ensure the accuracy and integrity of data entered into a system.

Data Input Controls

Controls that ensure the accuracy and validity of data entered into a system.

Data Processing Controls

Controls that verify the correctness of data handling processes.

Output Controls

Controls that ensure the outputs from processing are accurate and valid.

Field Check

A type of data entry control that ensures the entered data is of the proper type (e.g., alphabetic vs. numeric).

Sign Check

A data entry control that tests to ensure entered data is of the proper sign (e.g., no negative values for credit hours).

Limit Check

A data entry control that compares entered data to a predetermined maximum or minimum amount.

Range Check

A data entry control that ensures the entered value falls between a defined lower and upper limit.

Completeness Check

A control that tests to ensure all required data items have been entered into the system.

Validity Check

Compares entered data to a file of acceptable values to ensure correctness.

Reasonableness Test

Checks the logical relationship between two data elements.

Data Matching Test

Ensures that two or more data items match before processing can occur.

Cross Footing Balance Test

A method used to test the accuracy of calculated amounts by checking them through multiple methods.

Reconciliation Procedures

The process of ensuring that two sets of records (internal and external) are in agreement with each other.

Internal Reconciliation

Reconciling two amounts within the same system.

External Reconciliation

Ensuring that figures from the system reconcile with external sources.

Bill of Lading

A legal document defining the responsibility for goods in transit.

Open Invoice Method

An invoicing method where the customer pays for the sale with the invoice, sending one copy back as payment.