In: Accounting
One control that is applicable for almost any system is “enter data close to the originating source.” A customer entering a purchase into a sales system (such as at Amazon.com) is an excellent example of this control. Describe the details of why this process produces fewer errors than a system of the customer writing down the order and sending it to the vendor. Be sure to include validity, completeness, and accuracy in your answer.
Enter data close to the originating source is a strategy for the capture and entry of event–related data close to the place (and probably time) that an event occurs, reducing the likelihood that events will be lost and not entered into the system and that errors will be introduced into the system.
When a customer has to write down the order on its own then are chances of errors in describing the nature of product needed and timely reaching of the order into the vendors sales department whereas if a purchaser has to enter the purchase into sales system, it will be easy to find the product and ordering it. This assures the completeness of the order he intends to purchase. As the system already defines the product in detail the customer is more assured of his order that he is going to make which assures accuracy of the ordering system. As system order is properly tracked and order is placed on real time basis, there is less chance of missing the order on behalf of vendor which keeps the validity of the order intact.