Accounting System Controls
In accounting devices, certain regulates are had to ensure that staff are doing their particular jobs correctly and ensure the system operates properly. These checks are in the best interest in the organization. These kinds of controls appear in the form of internal and external settings for the program. The internal handles are the checks that are placed in the system my own the company's very own management and directors. Today more and more businesses are moving from the manual accounting systems to computerized accounting information devices. The advantages of your computerized program are boosts in the velocity and accuracy and reliability of control accounting data. However , because systems turn into computerized, the internal controls for this system must be adapted appropriately. This is because electronic systems provide with these people certain one of a kind problems that can easily be taken out or minimized by establishing the present settings and adding new settings. These problems are
В· In a manual system there exists a paper trek for the internal auditor to adhere to. All records and deals are kept on paper so an auditor has very clear and recorded proof of what has happened. Computerized devices rarely have got a clear newspaper trail to follow. Since computer systems do all the sorting in the information the business rarely sorts the source papers. Also the pc does most of the calculations and processing thus there would not be the quantity of documentation that there would be within a manual system.
В· Another problem of computers is the fact that there can be trouble determining who entered the info. In a manual system the identity of the person coming into the data may be identified perhaps by the person's handwriting. This kind of cannot be done in a computerized system. This will make it very difficult to ascertain who is in charge of errors or perhaps fraud. В· Since the computer systems do every calculations and processing mistakes can occur because of bad design of the program. This is often difficult to detect especially if the problem does not occur frequently and later does so under particular conditions.
В· Computer systems also offer fresh opportunities to get fraud. If a computerized strategy is not create properly and certain bank checks not put in then the computer can be used to deceive the company. The simple fact that it is hard to trace who also enters the info only adds to the magnitude of this.
In order to minimize the risks of errors or perhaps fraud developing in the computer certain handles have to be implement. These regulates can be broken up into three different categories. They are
1 ) Administrative Regulates
2 . Devices Development Settings
3. Procedural Controls
Administrative Controls
Management controls will be those regulates are those controls which are attached on system in order that the proper firm and control of data. These types of administrative handles are
Division of duties.
Obligations are assigned to different individuals in the organization. This is required for such the best way that no-one person can easily have total control over a transaction. This kind of ensures that an individual cannot have full control of the creation and functioning of the system. One reason behind this section is having a single person controlling the system can result in scam if the face is certainly not completely trustworthy. Another reason intended for the trademark duties is usually to prevent the firm from becoming totally dependent on the person manipulating the computer system. If this person would have been to leave then the organization could have no one to run the system. The division of tasks ensures that workers can keep without having any kind of major influence on the system.
Operation Controls
Operation controls are essential controls since they since they know what the computer systems and the staff using the system have been carrying out. These handles can come in the proper execution of
В· rotation of shifts...
Bibliography: Basset G. H. (1993) Computerised accounts, 3rd Copy, Manchester: NCC
Blackwell. 1-85554-205-6.
Grudinsku G., Burch J., (1989), Info Systems Theory and Practice, 5th
Edition, John Wiley and Kids, Inc. 0-471-61293-6.
