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Hi Sirs.
According to F8 acca textbook, control activities include those activities designed to prevent or to detect and correct errors. Examples include activities relating to authorisation, performance reviews, information processing, physical controls and segregation of duties
Besides, it said that information processing controls also include controls over computerised system within a company.
However, the internal controls in a computerised environment comprise two types of control, general controls and application controls. In general controls, I see that one example is segregation of duties so that those responsible for design are not responsible
for testing and one example is restricted access to authorized users only, which is also an example of physical control.
So i am a little bit confused here, so in the information process activities, we also have the physical control and segregation of duties in it, am i correct?The control activities of authorisation, performance reviews, physical controls and segregation of duties are relevant to any accounting and internal control system regardless of whether or not the system is computerised. In a computerised system, there are also information processing controls – general and application.
Yes restricting access to a computer may be a physical control (locked doors to a computer room) but a hierarchy of passwords – though an access control is not physical.
Don’t get hung up about the appearance of overlap – think of them more as a range of ideas to be drawn on when presented with a scenario.
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