Application Review

Application controls refer to the transactions and data relating to each computer-based application system, and therefore, they are specific to each. The objectives of application controls, which may be manual or programmed, are to ensure the completeness and accuracy of the records and the validity of the entries made therein resulting from both manual and programmed processing. Application controls are controls over input, processing and output functions. Application controls include methods for ensuring that:

• Only complete, accurate and valid data are entered and updated in a computer system.
• Processing accomplishes the correct task.
• Processing results meet expectations.
• Data are maintained.

These controls may consist of edit tests, totals, reconciliations, and identification and reporting of incorrect, missing or exception data. Automated controls should be coupled with manual procedures to ensure proper investigation of exceptions.