What are data processing controls?
The BEC section of the CPA exam will test you on the key data processing controls. The purpose of processing controls is to verify that data was properly processed through the system. Processing controls will identify if the data was processed incorrectly. The company would have data entry input controls to verify data is inputted properly into the system, but then it would need data processing controls to maintain high integrity and quality in the data. The main data processing controls include:
1) Run-to-run totals (sum checks): Ensures that the cumulative totals of records from one data processing run to another are consistent.
2) Data matching: When the data across various sources is compared, does it all match or agree? For example, does the date on the PO agree to the date on the corresponding invoice?
3) Data sequence checks: If data is supposed to be in sequential order, is the sequence complete, or is data missing? For example, if there should be invoices numbered 1 through 10, are all 10 listed in the system data?
Data processing controls are key controls that every company should have implemented in a business process. Other key controls include segregation of duties, data entry input controls, controls over standing data, account reconciliation controls, spreadsheet controls and supervisory controls.
Back To All Questions
You might also be interested in...
-
What are supervisory controls in a business process?
A supervisory control means exactly what you think it would mean. Supervisory controls are used to “monitor” a business process and are designed to prevent or detect issues. Supervisory controls are typically performed by the manager of a business process or executive team members. What are some types of preventive supervisory controls? Examples of preventive...
-
What are the types of data entry input controls?
The BEC section of the CPA exam will test you on the key data entry input controls. Data entry input controls are preventive controls that a company should have in place for systems that collect data across various business processes. Data entry input controls help maintain high integrity and quality of the data entered into...
What are supervisory controls in a business process?
A supervisory control means exactly what you think it would mean. Supervisory controls are used to “monitor” a business process and are designed to prevent or detect issues. Supervisory controls are typically performed by the manager of a business process or executive team members. What are some types of preventive supervisory controls? Examples of preventive...
What are the types of data entry input controls?
The BEC section of the CPA exam will test you on the key data entry input controls. Data entry input controls are preventive controls that a company should have in place for systems that collect data across various business processes. Data entry input controls help maintain high integrity and quality of the data entered into...
