15.4 Types of controls in computerised systems (Administrative, system development, processing controls, application controls, master files and standing data

In computerized systems, various types of controls are implemented to ensure the reliability, integrity, and security of the system and its data. Here are the different types of controls commonly used in computerized systems:

1. Administrative Controls: These controls focus on the management and oversight of the computerized system. They include policies, procedures, and guidelines that govern system access, user privileges, segregation of duties, and overall system management.
2. System Development Controls: These controls are implemented during the development and implementation of the computerized system. They ensure that the system is designed, programmed, and tested in accordance with established standards and best practices. System development controls include requirements analysis, system design, coding standards, testing protocols, and change management procedures.
3. Processing Controls: These controls are designed to ensure the accuracy, completeness, and timeliness of data processing activities. They include controls over data input, processing, and output. Examples of processing controls include data validation checks, reconciliations, data backup and recovery procedures, error handling mechanisms, and job scheduling controls.
4. Application Controls: These controls are specific to individual applications or modules within the computerized system. They are designed to ensure the accuracy, integrity, and security of application-specific data and processes. Examples of application controls include user authentication and authorization, data encryption, transaction logging, audit trails, and exception reporting.
5. Master Files and Standing Data Controls: Master files and standing data contain critical information that is used across multiple applications or modules. Controls over master files and standing data are important to maintain data integrity and consistency. These controls include data validation rules, data access controls, change management procedures, and periodic reviews of master data for accuracy and completeness.