What are Application Controls?

Application controls improve the quality of the data that is input into a database. Some of these controls usually reside within an organization’s software, where they are programmed to flag entries that are incorrect or incomplete, or ensure that transactions are processed and reported correctly. As such, they are an efficient way to block errors from entering the database, and ensure that acceptable data are processed and reported correctly thereafter. The main categories of application controls are input controls, processing controls, and output controls.

Examples of Application Controls

There are a variety of application controls, as we describe below.

Input Controls

Input controls ensure that data being input into a database have met a pre-set group of criteria. An example of an input control is the validity check, which reviews the data entered into a data entry screen to ensure that it meets a set of predetermined range criteria. Or, a completeness check will examine a data entry screen to see if all fields have an entry.

Processing Controls

Processing controls ensure that data are processed properly once they have been entered into a system. For example, an accounting package is configured to only allow seven-year straight-line depreciation for any fixed assets classified as furniture and fixtures.

Output Controls

Output controls ensure that the information produced by a system is complete and properly presented. For example, the company controller must review and approve the financial statements before they can be issued. Or, access controls are used to ensure that only authorized personnel can access a firm’s accounting report writer software, thereby ensuring that financial statements cannot be improperly altered.