Manual and automated control.
Automated control.
Scope of application. There is a large number of or regenerated transactions;
Errors that could have been foreseen or detected and corrected by automated processing;
Controls implemented in a specific way can be appropriately designed and automated.
Advantage. Handle large volumes of transactions or data, perform complex calculations;
Improve the timeliness, availability and accuracy of information;
Contribute to in-depth analysis of information;
Improve supervision capacity and reduce the risk of control being avoided;
Improve the effectiveness of segregation of duties by implementing security controls.
Risk. The data processed is incorrect;
Unauthorized or unauthorized access to data, systems, or programs;
Failure to make necessary changes to systems or procedures;
Inappropriate human intervention;
Data loss or inaccessibility.
Manual control. Scope of application.
There are large, unusual or occasional transactions;
There are incorrect conditions that are difficult to define, anticipate, or **;
In response to changes in the situation, manual intervention is required with existing automated controls;
Monitor the effectiveness of automated controls.
Risk. Manual controls may be easier to circumvent, ignore, or override;
Manual controls may not be consistent;
Manual control can be more prone to simple errors or mistakes.
Preventive and inspection controls.
Preventive controls: Controls designed to prevent misstatements from occurring.
Checking controls: Designed to detect misstatements that may occur in a process.
Checking controls are those in which the finance staff reconciles accounts with customers at the end of each month and investigates discrepancies.
The premise for the warehouse manager to handle the outbound Is it snowing in your city is that the invoice is approved, which is designed to prevent shipping errors and is a preventive control. Before employees operate in the system, the information technology department will set appropriate responsibilities and authorities in advance to prevent unclear rights and responsibilities, ultra vires operations, etc., which is a preventive control. Conduct a background investigation on the new ** business, and then sign the contract after the results are satisfied, which is only to prevent the ** business from being unqualified and not up to standard, which is a preventive control.
At the end of each month, the accounting processing and records of the financial personnel have been formed, and the reconciliation and discrepancy investigation are aimed at verifying the accuracy or completeness of the accounting records, and the errors are found and corrected in a timely manner, which is a check control.