Question

What is Application Controls for Transaction Processing

Answer 1

The Application Controls for Transaction Processing can be summed-up as processing in a control manner of all the transactions and data referred to each specific application to contribute towards output confirmation.

The objective of the existence of the Application controls is to ensure that complete and accurate records and valid entries are processed to provide output.

The Application controls as referred by various auditors and company’s management as of three types:

1. Input Controls : It includes all those data entries and transactions made at the various points with proper and adequate accuracy and authority.
2. Processing Controls : It constitutes the processing of all the input data and transactions which are required to be processed or have permission to that.
3. Output Controls : The processing of the data and transactions through the application software to provide accurate and desired output/results.

Thus, we can put that the Application controls provide services like:

1. Ensures a complete, accurate and valid input data for processing.
2. Enables the application software to process and produce desired output.
3. Ensures that the processing takes place without any fault.
4. Resultant output would be expressed in the form of reports or documents.

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