IT Application Controls And The Advantages Of Automation

IT Application Controls And The Advantages Of Automation

The cost of data breaches has been speedingly growing. The number and scope of breaches continued to grow. The leading contributors to the dramatic rise in data breaches are attributed. It compromised credentials and the extreme growth in remote working. Remote work has become the norm, making companies scrambling to secure their data.

The best way to safeguard data is through acquiring solid application control and automated control solutions.

What does the application mean?

The application is the computer system processing data for a specific business purpose. The application is crucial for businesses because it boosts efficiency by simplifying business processes. There are a few of the examples of applications, such as:

A few common examples of applications are:

  • General ledger
  • HR
  • Payroll
  • Inventory control

Applications face 3 main risks in handling data, such as:

application control

  • confidentiality
  • integrity
  • availability

Confidentiality relates to a data breach that violates legal regulations. Integrity focused on its accurateness of the application’s data and the ability to become available.

Application tools

Data can be at risk each time applications or users share data and it can be compromised. IT application controls reduce that risk by putting checks in place to secure the data. It authenticates the applications and data before it enters or leaves the internal environment. It is done to ensure that only authorized users and applicants can transmit and process data in the protected digital assets.

Purpose of application controls

Its purpose is to keep the privacy and security of the data used and sent between the applications. The function of application controls varies depending on the application’s purpose. Application tools have three categories, such as:

  • input
  • processing
  • output controls

The function of application controls

  • Verify the transmitted data
  • Validate data that is sent out of the system
  • Authenticate the information input in the system
  • Ensures the output reports will be protected from disclosure
  • Guarantees the input data is:
    • Complete
    • Accurate
    • Valid
  • Ensures the internal processing produces the expected outcomes

Both the manual controls and automated controls are implemented to ensure proper protection of the applications.

Application controls aimed at the completeness and accurateness of records, including the validity of the entries made in every record.

Application control activities include:

  1. Determine whether sales orders are processed in the parameters of customer credit limits.
  2. Ensure goods and services are procured in an approved purchase order
  3. Monitors for the segregation of duties
  4. Determines whether there’s a 3-way match between:
    1. order
    2. receiver
    3. vendor invoice

Application controls have three methods of control, such as:

  • Access and input controls. It ensures the data is:
    • accurate
    • complete
    • authorized

Input controls check the integrity of data entered in the application and ensure the data will be entered in the required criteria. Examples may

  • Check box
  • Date Selection
  • List box

Systems with robust access controls enforce the verification of every user’s identity. Examples of access control are:

  • two-factor authentication
  • pin codes
  • biometrics
  • Processing controls. It ensures the processing is performed without double counting data and deletion. Many processing controls are similar as input controls, but are in the processing phase. Some examples are:
    • Completeness check
    • Duplicate check
    • Sequence check
  • Output controls. It manages the data that leaves the application, ensuring that transactions will be processed accurately and keeps data:
    • not lost
    • misdirected
    • corrupted