Question

Which of the following statements related to application controls is correct?

1) Application controls relate to various aspects of the IT function including software acquisition and the processing of transactions.
2) Application controls relate to various aspects of the IT function including physical security and the processing of transactions in various cycles.
3) Application controls relate to all aspects of the IT function.
4) Application controls relate to the processing of individual transactions.

Answer 1

The correct statement about application controls is that they relate to the processing of individual transactions, ensuring their integrity and accuracy within software applications.

Step-by-step explanation:

The question pertains to the correct statement related to application controls within Information Technology (IT) and its functions. Application controls are mechanisms that ensure the integrity, accuracy, and completeness of the data processed by software applications. The most accurate statement is that application controls relate to the processing of individual transactions to ensure they are conducted correctly and securely.

Therefore, the correct answer from the options provided is:
4) Application controls relate to the processing of individual transactions.

Other aspects such as software acquisition, physical security, and broader IT functions are typically encompassed by general controls, not application controls. Application controls are designed specifically to deal with transactional data accuracy, authorization, and completeness at the application level.