Accounting Information Systems

Fourteenth Edition

Chapter 10
Processing Integrity and
Availability Controls

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 Learning Objectives
• Identify and explain the input, processing, and output
controls designed to ensure processing integrity.
• Identify and explain controls designed to ensure systems
availability by minimizing the risk of system downtime and
enabling efficient recovery and resumption of operations.

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 Processing Integrity Controls
• Input Process Stage
– Forms design
 Sequentially prenumbered
– Turnaround documents
– Cancelation and storage of source documents
– Data entry controls

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 Processing Integrity: Data Entry Controls
• Field check • Size check
– Characters in a field are proper – Input data fits into the field
type
• Completeness check
• Sign check – Verifies that all required data is
– Data in a field is appropriate sign entered
(positive/negative)
• Validity check
• Limit check – Compares data from transaction file
– Tests numerical amount against a to that of master file to verify
fixed value existence
• Range check • Reasonableness test
– Tests numerical amount against – Correctness of logical relationship
lower and upper limits between two data items
• Check digit verification
– Recalculating check digit to verify
data entry error has not been made

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 Additional Data Entry Controls
• Batch processing • Prompting
– Sequence check – System prompts you for
 Test of batch data in proper input (online
numerical or alphabetical completeness check)
sequence
• Closed-loop verification
– Batch totals
– Checks accuracy of input
 Summarize numeric values
for a batch of input records data by using it to retrieve
– Financial total and display other related
– Hash total
information (e.g.,
– Record count
customer account #
retrieves the customer
name)

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 Processing Controls
• Data matching • Cross-footing
– Two or more items must be – Verifies accuracy by comparing
matched before an action takes two alternative ways of
place calculating the same total
• File labels • Zero-balance tests
– Ensures correct and most – For control accounts (e.g.,
updated file is used payroll clearing)
• Recalculation of batch totals • Write-protection mechanisms
– Protect against overwriting or
erasing data
• Concurrent update controls
– Prevent error of two or more
users updating the same record
at the same time

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 Output Controls
• User review of output
• Reconciliation procedures
– Procedures to reconcile to control reports (e.g., general ledger
A/R account reconciled to Accounts Receivable Subsidiary
Ledger)
– External data reconciliation
• Data transmission controls
– Checksums
– Parity bits

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 Availability Key Objectives
• Minimize risk of system downtime
• Quick and complete recovery and resumption of normal
operations

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 Availability Controls
• Preventive maintenance • Backup procedures
• Fault tolerance – Incremental
– Use of redundant components  Copies only items that have
• Data center location and changed since last partial
backup
design – Differential backup
– Raised floor  Copies all changes made
– Fire suppression since last full backup
– Air conditioning • Disaster recovery plan (DRP)
– Uninterruptible power supply
– Procedures to restore
(UPS)
organization’s IT function
– Surge protection
 Cold site
• Training  Hot site
• Patch management and • Business continuity plan
antivirus software (BCP)
– How to resume all operations,
not just IT

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 Key Terms (1 of 2)
• Turnaround document • Sequence check
• Field check • Batch totals
• Sign check • Financial total
• Limit check • Hash total
• Range check • Record count
• Size check • Prompting
• Completeness check • Closed-loop verification
• Validity check • Header record
• Reasonableness test • Trailer record
• Check digit • Transposition error
• Check digit verification • Cross-footing balance test
• Zero-balance test

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 Key Terms (2 of 2)
• Concurrent update controls • Recovery time objective (RTO)
• Checksum • Real-time mirroring
• Parity bit • Full backup
• Parity checking • Incremental backup
• Fault tolerance • Differential backup
• Redundant arrays of independent • Archive
drives (RAID) • Disaster recovery plan (DRP)
• Uninterruptible power supply (UPS) • Cold site
• Backup • Hot site
• Recovery point objective (RPO) • Real-time mirroring
• Business continuity plan (BCP)

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