Internal Control In A Manual And Computerized Accounting Environment ( Part 3)

Controls In Manual Accounting System

·      Independent reconciliation of external data like using bank statement to reconcile to the company’s bank account or using external supplier statement of account to reconcile with our individual creditor account;

·      Using Control or Total Account

·      Review of the Trial Balance to ensure debit = credit

Controls in Computerized Accounting System

·      Proper transaction authorization. Input control needs to be instituted like input data needs  to be verified for accuracy and completeness by a person different from the one who is keying in the data;

·      Besides the above input control, there should be processing and output controls to ensure integrity of the transaction data is intact;

·      No unauthorized access to computer files, data, etc. All kept under lock and key and proper log is maintain;

·      Uses of password control to access data;

·      Pl refer to ieauditblog.com for more details in internal controls