Controls for Order Entry, Part 2 (#2)

In this episode, we cover the full range of controls associated with a computerized order entry function, mostly dealing with controls for electronic customer orders. The main control areas noted in the episode are:

  • Verification of the approved buyer, especially for larger order sizes

  • Data validation controls to reduce the number of data entry errors

  • Automatic matching by the system of ordered quantities to on-hand amounts, to ensure that ordered quantities can be shipped

  • Automatic linking of customer orders to an online price book, to ensure that the correct prices are billed

  • Automated confirmations back to customers, showing the details of orders in the company’s systems

  • Special oversight controls for unusually large orders received from customers

  • The use of evaluated receipts systems to avoid having to issue an invoice to a customer

  • The use of password access to limit user access to the order entry system

Related Courses

Accounting Controls Guidebook
Accounting Information Systems