In the context of a computer based accounting system, explain the meaning of the following terms: Application controls and General controls

Application controls

These are control procedures over the accounting system designed to provide reasonable assurance that all transactions are authorised, recorded and processed completely, accurately on timely basis. Application controls may be manual or programmed and are include

• Controls over input
• Controls over processing
• Controls over output
• Controls over master files and standing data.
General controls

These are controls which relate to the environment within which computer based accounting systems are developed, maintained and operated aimed at providing reasonable assurance that the overall objectives of internal controls are achieved. These controls could either be manual or programmed.
General controls include

• Controls over systems development and maintenance
• Controls over data files
• Computer operations controls
• Controls to ensure continuity operation.

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