Question

A company's labor distribution report requires extensive corrections each month because of labor hours charged to inactive jobs. Which of the following data processing input controls appears to be missing?

A) Completeness test.
B) Validity test.
C) Limit test.
D) Control total.

Answer 1

The missing data processing input control likely causing inaccuracies in the labor distribution report is a validity test, which checks if input data corresponds to active job numbers.

Step-by-step explanation:

The company experiencing problems with labor hours charged to inactive jobs is likely missing a validity test as part of their data processing input controls. A validity test ensures that the data entered into the system corresponds to existing and active entities, such as job numbers. Without this control, employees may mistakenly or intentionally charge labor hours to job codes that are no longer active, leading to the need for extensive corrections on the labor distribution report.