A commercial bank operates an integrated computerized accounting system to process daily transaction batches and generate financial statements. Match each computerized internal control mechanism on the left with its appropriate functional control classification on the right.
- Range and Limit CheckInput Application Control that validates whether entered data values fall within pre-established acceptable numerical boundaries.
- Segregation of Systems Development and OperationsGeneral IT Control that prevents computer operators from altering application software source code or programs.
- Electronic Transaction LogAuditability Control that automatically records chronological user activities to reconstruct transaction history.
- Hash Total VerificationProcessing Application Control that verifies batch integrity by calculating totals of non-financial numeric fields.
Answer
Range and Limit Check matches Input Application Control validating numerical boundaries; Segregation of Systems Development and Operations matches General IT Control preventing code alteration; Electronic Transaction Log matches Auditability Control recording chronological activity; Hash Total Verification matches Processing Application Control verifying batch integrity via non-financial sums.
Each control mechanism correctly aligns with its primary scope: Range and Limit Checks enforce input data validity; Segregation of IT roles acts as a general IT governance control; Electronic Transaction Logs maintain the audit trail; and Hash Totals ensure batch processing completeness.
Step-by-Step Solution
Key Concept
Distinction and Application of General IT Controls, Application Controls, and Audit Trail Mechanisms in Accounting Systems