Application controls
Application controls operate within business processes and applications to support the completeness, accuracy, validity and authorisation of transactions. They may be automated or manual and include input, processing and output controls. Examples include checking that an order contains a valid customer code, recalculating invoice totals and matching an invoice to authorised purchasing records. The auditor evaluates the particular control and its supporting technology, not merely the software’s advertised features.
Worked example
The payroll system rejects timesheets with an invalid employee number before calculating pay.
Common mistake
An automated check cannot establish that an authorised user entered a valid but incorrect rate.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AA | Direct | September 2026–June 2027 |