AUD05: AUDITING IN CIS

ENVIRONMENT
13th October 2023
1:00 - 4:00 pm
Recap

1. What is the importance of internal controls in any form of

organization?

2. What are the main classification of internal controls in a CIS

environment?

3. What is the objective of general controls?

4. What is the objective of application controls?

Overview

Any idea about “Transaction Processing System”?

 Transaction Processing System

A transaction processing system or TPS refers to an information

processing system used for business transactions that involve the
retrieval, collection and modification of transaction data. It offers
an execution environment that ensures data availability, security
and integrity. Moreover, such a system ensures fast response time
and accuracy.
Transaction Processing System
 Transaction Processing System

TPS maintains the control and balance of a company’s buying

process. It coordinates product distribution, payroll processing and
sales, manages transactions form the payment accounts, and
benefits organizations when monitoring online purchases or sale
transactions. There are two types of transaction processing systems;
batch and real-time processing.
 Types of Transaction Processing System

Batch Processing – A TPS interprets batches or sets of data by

categorizing items by similarities via batch processing. This can cause
delays as it involves reviewing various data sets simultaneously.
However, the delay is acceptable as the TPS does not interpret the sets
regularly.

Businesses may customize the batches according to their requirement.

For example, a company may want to process its worker’s wages once
every two weeks.
 Types of Transaction Processing System

Real-time Processing – This type of TPS processes transactions with

immediate effect, thus preventing delays. This is an ideal technique
when businesses deal with singular transactions.
Types of Transaction Processing System
 Class Activity

Prepare a research paper for:

a. Components of Transaction Processing System
b. Features of Transaction Processing System
c. What are the advantages and disadvantages of
Transaction Processing System
d. Transaction Cycles of Transaction Processing
System

Submit the research paper on or before 4:00 pm.