Giezelle Mae C.

Gonzales

BA 73 Chapter 7

Wednesday, May 6, 2015

Review Question

1. What are the broad classes of input controls?

The broad classes of input controls are Source document controls, Data coding
controls, Batch controls, Validation controls, Input error correction and Generalized
data input systems.

2. Explain the importance of source documents and associated control techniques.

Physical source documents can be used to remove asset from the organization
by creating unauthorized transaction, careful control must be exercised over these
documents. These documents can be pre-numbered. Source documents should be
securely locked up when they are not being used. The tracking process should
include the investigation of any missing documents by management and periodically
audit to identify any missing documents.

3. Give one example of an error that is detected by a check digit control.

Check digits can effectively be used to determine that all of the numbers in a
numeric data stream were entered. This method involves adding up the numbers in
the data stream in order to determine the check digit. Consider the following number
789. The check digit would be 7+8+9=24. If 7,8 and 9 are not entered, then chances
are that the check digit will be incorrect. This method will not detect transposition
error.

4. What are the primary objectives of a batch control?

The objective of batch control is to reconcile output produced by the system with
the input originally entered into the system. This provides assurance that all records
in the batch are processed, no records are processed more than once and an audit
trail of transactions is created from input through processing to the output stage of the
system.
5. Classify each of the following as a field, record, or file interrogation:

a. Limit Check - Field Interrogation

b. Validity check - Field Interrogation

c. Version check - File Interrogation

d. Missing data check - Field Interrogation

e. Sign check - Record Interrogation

f. Expiration date check - File Interrogation

g. Numeric-alphabetic data check - Field Interrogation

h. Sequence check - Record Interrogation

i. Zero-value check - Field Interrogation

j. Header label check - File Interrogation

k. Range check - Field Interrogation

l. Reasonableness check - Record Interrogation

6. Compare the three common error-handling techniques discussed in the text.

Correct Immediately. If the system is using the direct data validation approach, error
detection and correction can also take place during data entry. Upon detecting a
keystroke error or an illogical relationship, the system should halt the data entry
procedure until the user corrects the error.

Create an error file. When delayed validation is being used, such as batch system
with sequential files, individual errors should be flagged to prevent them from being
processed. At the end of the validation procedure, the records flagged as errors are
removed from the batch and placed in a temporary error holding file until the errors
can be investigated.

Reject the batch. Some force errors are associated with the entire batch and are not
clearly attribute to individual records. The most effective solution in this case is to
cease processing and return the entire batch data control to evaluate, correct and
resubmit.
7. What are the five major components of a GDIS?

The five major components of a GDIS are Generalized validation module,

Validation data file, Error file, Error reports and Transaction log.

8. What are the three categories of processing controls?

The three categories of processing controls are run-to-run controls, operator

intervention controls and audit trail controls.

9. If all of the inputs have been validated before processing, then what purpose do run-
to-run controls serve?

Run-to-run controls ensure that each run in the system process the batch
correctly and completely. It ensure that no records are lost, unprocessed or
processed more than once for each of the computer runs that the records must flow
through.

10. What is the objective of transaction log?

One of the objectives of a transaction log is to create a separate, permanent

record of all transactions that have changed account balances.

11. How can spooling present an added exposure?

The creation of an output fie as an intermediate step in the printing process

presents an added exposure. A computer criminal may access the file and change it,
delete or use the information in it, or destroy.