IBM 1130 User Manual page 110

Section
Subsections Page
20 10
I
20 01
More Specific Suggestions for Document and
Accounting Controls
The following discussion of accounting controls is
concerned with (1) those controls established and
used outside the data processing installation and
(2) those established and used inside the installation.
Outside controls consist primarily of the initiation,
authorization, and verification of source documents
representing accounting transactions. Inside con-
trols consist of (1) checking operations, in which
transcribed transaction data is verified, and (2)
balancing operations, which ensure the accurate
processing of all transaction data.
Generally, the necessity for accounting control
increases with the volume of transactions or doc-
uments processed and the complexity of operations
performed. A variety of control techniques will be
discussed. The techniques to be employed depend
upon individual conditions within your organization.
It is important that the controls which you use al-
ways provide a proper balance between their cost
and their value. Since a system of accounting con-
trols may be obsoleted by a change in accounting
procedure, company policy, company organization
and/or data processing equipment, controls should
be examined and evaluated periodically. Company
auditors should participate in establishment and
evaluation of a control system.
Outside Controls
Control techniques described in the following text
are not necessarily limited in use to anyone appli-
cation; they are easily modified for use with a vari-
ety of applications:
Document register. Control of individual doc-
uments can be maintained effectively by the prepa-
ration of a register on which each document is
listed at the point of receipt or origin. The register
should include either a description that is sufficient
to identify each document quickly, or a serial iden-
tification number. The serial number not only
furnishes positive identification and an effective
method for later reference, but is also most easily
used at the point of entry or origin. When each
document has been completely processed, it is
"checked offT' or canceled on the register. Un-
canceled numbers represent documents that either
are in process or have been mislaid. Intermediate
processing operations for each document may be
shown on the register and dated as the document
passes those points in the procedure. The illus-
trated document register for sales orders not only
discloses a missing or misplaced document, but
also indicates any delays in processing--as might
be the case with order 12843, which, several days
after its receipt, has not yet been billed.
Serial numbering and the batch control ticket.
Where serial numbers are printed or stamped on
each document, rearrangement in serial number
order and a check for missing numbers may be
performed during, as well as after, processing to
ensure inclusion of all documents. This plan is
particularly adaptable to documents such as checks
or drafts, where each document must be accounted
for. When the document is an IBM card, the serial
number may be punched into, as well as printed or
interpreted on, the card; arrangement of the doc-
uments, as well as a count of and sequence check
for missing documents, may then be accomplished
automatically.
Serial numbering may also be used for groups
and batches. If so, the number of documents in
each batch is recorded, together with the batch
serial number, either on the first document or on
a separate form accompanying the batch. For
large-volume operations, batch size should be
predetermined for ease and efficiency in handling.
The illustrated batch control ticket employs a
document count as well as document and batch serial
numbering. By maintaining a file of the batch con-
trol tickets, both the sending and receiving depart-
ments can account for all documents.
Transmittal and route slips. A letter of trans-
mittal describing a group or batch of documents is
frequently employed to establish control and transfer
responsibility when documents move from one depart-
ment or location to another. The transmittal slip,
as shown, is usually a printed form with spaces to
indicate the variable information for the batch.
When the volume of work or the number of
people who may perform any given operation is
large,
it
may be desirable to fix responsibility for
accounting for documents passed from each opera-
tion to the next as well as from one department to
another. In this case, a route slip is employed,
either in addition to or in combination with the
letter of transmittal. The route slip is similar
to the batch control ticket shown, except that in
this case each department, or operational step
performed, is identified, along with an indication
of the processing time and the operator or clerk
responsible for each job. Responsibility is fixed,
and the means to effect a degree of work control
as well as document control has been incorporated
into the same form.