Automated controls are embedded into IT systems or applications and require no manual intervention
Programmed into the IT system
Consistently operate in the same manner
Tend to be the most effective, as there is no room for manual or human error
EXAMPLE:
- The accounting system will not post a journal entry until it has been approved by a second person. The system ensures the approval is made by a different person than the one who drafted the entry.
Automated controls require no manual intervention – they are embedded into the IT systems or applications
-These consistently operate in the same way
-May be more effective, as there’s no room for manual or human mistakes
Qs: Can you think of another example of automated controls?
A member of the finance team cannot get access to the accounting system without typing in their user name and password.