Difficulty: Easy
Correct Answer: All of the above
Explanation:
Introduction / Context:
In processing controls are protective mechanisms inside a system that maintain integrity, completeness, and accuracy from input through output. Good controls reduce fraud, mistakes, and operational risk while supporting auditability.
Given Data / Assumptions:
Concept / Approach:
Effective processing controls typically include: authentication/authorization checks, edit checks, sequence and batch totals, run-to-run controls, reasonableness checks, error trapping, and reconciliation. Together they prevent unauthorized changes, ensure all items are processed once, and keep bad or corrupt records from polluting downstream results.
Step-by-Step Solution:
1) Security: enforce permissions to stop unauthorized actions and tampering.2) Completeness: use control totals and end-of-file markers so every record in a batch is processed.3) Validity: use range, format, and referential checks to block invalid data before calculations occur.4) Exception handling: log, quarantine, and reprocess errors in a controlled queue.5) Audit trail: preserve run-to-run totals to trace transformations.
Verification / Alternative check:
Standards and audit guidance consistently specify that robust processing controls address confidentiality/integrity (prevent tampering), completeness (everything processed), and validity (reject or trap faulty data).
Why Other Options Are Wrong:
Prohibit tampering: true but incomplete alone.Verify all data processed: true but not sufficient.Block faulty data: true but only one dimension.None of the above: incorrect because all three are relevant.
Common Pitfalls:
Relying only on input validation, ignoring run-to-run controls, or failing to segregate duties can still allow omissions or unauthorized changes during processing.
Final Answer:
All of the above
Discussion & Comments