Ais Internal Controls

In order to minimize the risks of errors or fraud occurring in the computer system certain controls have to be put into place. These controls can be broken up into three different categories. They are

1. Administrative Controls

2. Systems Development Controls

3. Procedural Controls

Administrative Controls

Administrative controls are those controls are those controls that are placed on the system to ensure the proper organization and processing of data. These administrative controls are

Division of duties.

Duties are assigned to different individuals in the organization. This is done in such a way that no one person can have full control over a transaction. This ensures that an individual cannot have full control over the creation and operating of the system. One reason for this division is having one person controlling the system can result in fraud if that person is not completely trustworthy. Another reason for the division of duties is to prevent the organization from becoming totally dependent on the person controlling the computer system. If this person were to leave then the organization would have no one to run the system. The division of duties ensures that employees can leave without having any major effect on the system.

Operation Controls

Operation controls are necessary controls since they since they determine what the computer systems and the employees using the system have been doing. These controls can come in the form of

• rotation of shifts

• duty logs

• a manual of operating instructions

• attendance controls

• computer logs

These controls can allow an auditor to track the exact actions of the computer systems and employees. This documentation allows the to easily spot any errors or improper actions that have occurred.

Files Controls

These controls are put in place to minimize the number of errors and omission that occur in the file system. Good file controls are

• Availability of a skilled technician

• Proper procedures for...