Automated Application Controls: Input Controls. In its automated processing systemover payroll transactions, Brady Company enters the following data from its employees’attendance records (# corresponds to a numeric field; A corresponds to an alphabetic field):∙ Employee number (##-#-##, the employees’ Social Security number).∙ Entity division (AA#, an alphanumeric field containing two letters corresponding to thelocation of the employee and two numbers corresponding to that employees’ supervisor).∙ Hours worked (##.#, a weekly total of hours worked in 0.25-hour increments).After data entry, these data are processed against the information maintained in thatemployee’s master file record. The records are accessed based on employee number. If theemployee is an hourly employee, the number of hours worked is multiplied by the pay rate; ifa salaried employee, the hours worked are checked against a range of acceptable hours. Afterthe gross pay is determined, information in the master file record is used to calculate incometax, FICA, and other withholdings from that employee’s pay.Required:Provide an example of how Brady Company might incorporate each of the following inputcontrols to verify the accuracy of input of employee attendance record information.a. Data entry and formatting controls.b. Check digit.c. Record counts.d. Batch totals.e. Hash totals.f. Valid character tests.g. Valid sign tests.h. Limit or reasonableness tests.i. Error correction and resubmission procedures.
Automated Application Controls: Input Controls. In its automated processing system
over payroll transactions, Brady Company enters the following data from its employees’
attendance records (# corresponds to a numeric field; A corresponds to an alphabetic field):
∙ Employee number (##-#-##, the employees’ Social Security number).
∙ Entity division (AA#, an alphanumeric field containing two letters corresponding to the
location of the employee and two numbers corresponding to that employees’ supervisor).
∙ Hours worked (##.#, a weekly total of hours worked in 0.25-hour increments).
After data entry, these data are processed against the information maintained in that
employee’s master file record. The records are accessed based on employee number. If the
employee is an hourly employee, the number of hours worked is multiplied by the pay rate; if
a salaried employee, the hours worked are checked against a range of acceptable hours. After
the gross pay is determined, information in the master file record is used to calculate income
tax, FICA, and other withholdings from that employee’s pay.
Required:
Provide an example of how Brady Company might incorporate each of the following input
controls to verify the accuracy of input of employee attendance record information.
a. Data entry and formatting controls.
b. Check digit.
c. Record counts.
d. Batch totals.
e. Hash totals.
f. Valid character tests.
g. Valid sign tests.
h. Limit or reasonableness tests.
i. Error correction and resubmission procedures.
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