This document discusses processing integrity controls for accounting information systems. It describes five categories of controls: source data controls, data entry controls, processing controls, data transmission controls, and output controls. Within each category, specific controls are defined, such as forms design and pre-numbered forms for source data controls, and field checks and limit checks for data entry controls. Examples are provided of how these controls would be implemented in batch processing and online processing systems.

1. INTRODUCTION
• Skip pp. 278 – 282.
• Learn pp. 282 – 291.
• Skip pp. 292 – 298.
SYSTEMS
RELIABILITY
PROCESSING INTEGRITY
SECURITY CONFIDENTIALITY
PRIVACY
AVAILABILITY
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2. PROCESSING INTEGRITY
• Five categories of integrity controls are
designed to meet the preceding
objectives:
– Source data controls
– Data entry controls
– Processing controls
– Data transmission controls
– Output controls
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3. PROCESSING INTEGRITY
• Five categories of integrity controls are
designed to meet the preceding
objectives:
– Source data controls
– Data entry controls
– Processing controls
– Data transmission controls
– Output controls
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4. PROCESSING INTEGRITY
• The following source data controls regulate
integrity of input:
– Forms design
– Pre-numbered forms sequence test
– Turnaround documents
– Cancellation and storage of documents
– Authorization and segregation of duties
– Visual scanning
– Check digit verification
– RFID security
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5. PROCESSING INTEGRITY
• Five categories of integrity controls are
designed to meet the preceding
objectives:
– Source data controls
– Data entry controls
– Processing controls
– Data transmission controls
– Output controls
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6. PROCESSING INTEGRITY
• Once data is collected, data entry control procedures are
needed to ensure that it’s entered correctly. Common
tests to validate input include:
– Field check
– Sign check
– Limit check
– Range check
– Size (or capacity) check
– Completeness check
– Validity check
– Reasonableness check
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7. • Four Types of Questions
• The instructor will …..
– 1. State data input test (field check)
• List 4 possible definitions
– 2. State data input test (field check)
• List 4 possible examples
– Which one is an example.
– Which one is not an example.
– 3. State definition of data input test
• List 4 possible terms
– 4. State example of data input test
• List 4 possible terms
• In all types of question…..
– 1 is correct
– 1 is “way off” (maybe ‘sounds like could be term’)
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8. PROCESSING INTEGRITY
• Additional Batch Processing Data Entry
Controls
– In addition to the preceding controls, when using
batch processing, the following data entry controls
should be incorporated.
• Sequence check
• Error log
• Batch totals
– Financial Total
– Hash Total
– Record Count
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9. PROCESSING INTEGRITY
• Additional online data entry controls
– Online processing data entry controls include:
• Transaction logs
– Includes detailed records of all transaction data.
– Identifies the sequence in which transaction were
entered
– Can be used to reconstruct damaged online files.
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10. PROCESSING INTEGRITY
• Five categories of integrity controls are
designed to meet the preceding
objectives:
– Source data controls
– Data entry controls
– Processing controls
– Data transmission controls
– Output controls
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11. PROCESSING INTEGRITY
• Processing Controls
– Processing controls to ensure that data is processed
correctly include:
• Data matching
• File labels
– Header Record
– Trailer Record
• Recalculation of batch totals
• Cross-footing balance test
• Write-protection mechanisms
• Database processing integrity procedures
– Concurrent Update Controls
• Data conversion controls
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12. PROCESSING INTEGRITY
• Five categories of integrity controls are
designed to meet the preceding
objectives:
– Source data controls
– Data entry controls
– Processing controls
– Data transmission controls
– Output controls
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13. PROCESSING INTEGRITY
• Data Transmission Controls
– When the receiving unit detects a data
transmission error, it asks the sending unit
to re-send. Usually done automatically.
– Sometimes, the system may not be able to
accomplish automatic resubmission and
will ask the sender to re-transmit the data.
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14. PROCESSING INTEGRITY
• Message Acknowledgment Techniques
– A number of message acknowledgment
techniques can be used to let the sender of
an electronic message know that a message
was received:
• Echo check
• Trailer record
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15. PROCESSING INTEGRITY
• Five categories of integrity controls are
designed to meet the preceding objectives:
– Source data controls
– Data entry controls
– Processing controls
– Data transmission controls
– Output controls
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16. PROCESSING INTEGRITY
• Output Controls
– Careful checking of system output provides
additional control over processing integrity.
– Output controls include:
• User review of output
• Reconciliation procedures
• External data reconciliation
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17. Example: Credit Sales Processing
– Shows how Processing Integrity Controls are implemented.
– When Studying: Try to tie examples to previous terms & definitions.
However, some examples do not tie back.
– 7 Steps in Batch Processing (pp. 288 – 289)
– 3 Major Steps in Online Processing (pp. 289 – 291)
• Online Data Entry
• Online Processing
• Online Output
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18. • In Access Assignment 1, we specified
that the data field “RRNumber” in the
Receiving Report table should be strictly
autonumber. This is an example of:
a) Limit Check
b) Size Check
c) Field Check
d) Completeness Check
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19. • The data entry control “validity check”
would detect discrepancies between the
primary key fields and prevent the
enforcement of referential integrity.
Which of the following is a best example:
a) A zip code of BY23A
b) A product ID such as “BOX 16”
c) A vendor ID, such as “LASRON” that is not
listed in the Vendor table
d) An employee without a pay-rate
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20. • Which of the following processing control
most likely contains the “file name” for
the file being processed?
a) Header record
b) Each individual record in the file
c) Batch total
d) Trailer record.
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21. • Summing up all employee ID numbers
for a batch of Receiving activities is an
example of…
a) Financial total
b) Query total
c) Check digit verification
d) Hash total
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