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This document emphasizes the critical controls necessary at various levels to ensure the integrity and accuracy of supplier coding and financial data management. It discusses the input, processing, and output control mechanisms essential for maintaining proper audit trails, verifying supplier information, and ensuring data accuracy during system updates. Key controls include confirmation of input information, data matching, user review of outputs, and reconciliation procedures to prevent and eliminate inaccuracies, ensuring that financial accounts remain transparent and accountable.
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3 Controls (Input level) Supplier coding level – not auditor’s responsibility Proper COA to all GL accounts, leave an audit trail for sampling and confirmation Confirmation control to input information
3 Controls (Processing level) • Data match control before an action take place (e.g. verify supplier information at A/P) • Concurrent update control - requires related qualifications - data dictionary to avoid input error (2500 to 25000) • Data conversion control when chaning GL software
3 Controls (Output level) • User review of output control wrongful supplier, discount rate and quantity • Reconciliation control to eliminate sundry expense account • External data reconciliation control clean fictitious accounts
