Examples of Application Controls

Education

Examples of Application Controls

Apr 12, 2021

Sr. No.	Example-Application control	Purpose/Example
i	Data edits	Editing of data is allowed only for permissible fields
II	Separation of business functions	Transaction initiation and authorization done by separate individuals
III	Balancing of processing totals	Debit and credit of all transactions are tallied
IV	Transaction logging	All transactions are identified with unique id and logged
v	Error reporting	All errors in processing are reported
vi	Exception Reporting	All exceptions are reported

Key indicators of effective IT controls

Sr. No.	Indicators of effective IT controls
I	The ability to execute and plan new work such as IT infrastructure upgrades required to support new products and services.
II	Development projects that are delivered on time and within budget, resulting in cost-effective and better product and service offerings compared to competitors.
III	Ability to allocate resources predictably.
IV	Consistent availability and reliability of information and IT services across the organization and for customers, business partners, and other external interfaces.
V	Clear communication to management of key indicators of effective controls.
VI	The ability to protect against new vulnerabilities and threats and to recover from any disruption of IT services quickly and efficiently.
VII	The efficient use of a customer support center or help desk.
VIII	Heightened security awareness on the part of the users and a security conscious culture.

FRAMEWORK OF INTERNAL CONTROL AS PER STANDARDS ON AUDITING

Internal Control:

"Internal controls are a system consisting of specific policies and procedures designed to provide management with reasonable assurance that the goals and objectives it believes important to the entity will be met".

Internal control as per SA-315;

"SA-315 defines internal control as the plan of enterprise and all the methods and procedures adopted by the management of an entity to assist in achieving management’s objective of ensuring, as far as practicable, the orderly and efficient conduct of its business, including adherence to management policies, the safeguarding of assets, prevention and detection of fraud and error, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information".

IC @ SA315: Have a look In this way; The plan of enterprise and all the methods and procedures adopted by the management of an entity to assist in achieving management’s objective of ensuring, as far as practicable;

® Orderly and efficient conduct of its business, including adherence to management policies,

® Safeguarding of assets,

® Prevention and detection of fraud and error,

® Accuracy and completeness of the accounting records,

® Timely preparation of reliable financial information.