Question

Which of the following represents an example of an IT application control?

a) All changes to software applications must be reviewed and approved by the department affected by the application.
b) The accounts receivable manager reviews credit balances in accounts receivable quarterly to determine their causes.
c) The assistant controller performs a monthly bank reconciliation and follow-up of unexpected outstanding items.
d) The software application compares all sales invoices with underlying shipping information on the bills of lading and packing slips with sales invoices. If differences are revealed, a report is generated for review and follow-up by the billing supervisor."

Answer 1

The correct answer is d) The software application compares all sales invoices with underlying shipping information on the bills of lading and packing slips with sales invoices. If differences are revealed, a report is generated for review and follow-up by the billing supervisor.

Step-by-step explanation:

The correct answer is d) The software application compares all sales invoices with underlying shipping information on the bills of lading and packing slips with sales invoices. If differences are revealed, a report is generated for review and follow-up by the billing supervisor.

This example represents an IT application control because it involves comparing data in a software application with underlying shipping information to ensure accuracy. The control is implemented to detect any differences between sales invoices and shipping information, and if discrepancies are found, a report is generated for review and follow-up by the billing supervisor.

Other options mentioned in the question are not examples of IT application controls. Option a) is a business process control, option b) is a control related to reviewing credit balances, and option c) is a control related to bank reconciliation.