- Design and Procedural Aspects: The development of CIS systems will generally result in design and procedural characteristics that are different from those found in manual systems. These different design and procedural aspects of CIS systems include: (SSC @ DP dekhe ke samjh gaya ki ab design badaljayega)
- Single transaction update of multiple or data base computer files—a single input to the accounting system may automatically update all records associated with the transaction (e.g. shipment of goods documents may update the sales and customers’ accounts receivable files as well as the inventory file). Thus, an erroneous entry in such a system may create errors in various financial accounts.
(Entry of appointment letter updates employee records, attendance records, commission records, performance records etc.)
- Systems generated transactions—certain transactions may be initiated by the CIS system itself without the need for an input document. The authorization of such transactions may not be evidenced by visible input documentation nor documented in the same way as transactions which are initiated outside the CIS (e.g., interest may be calculated and charged automatically to customers’ account balances on the basis of pre-authorized teams contained in a computer program).
(Employees are asked to give security deposit, standard interest is applied and provided to employees, system computes interest and adds it to remuneration automatically)
- Consistency of performance—CIS systems performed functions exactly as programmed and are potentially more reliable than manual systems, provided that all transaction types and conditions that could occur are anticipated and incorporated into the system. On the other hand, a computer program that is not correctly programmed and tested may consistently process transactions or other data erroneously. (Diwali Bonus of 10% was announced to all employees, there was option in software to give standard bonus to all employees but 25 employees who got cars and two wheelers were not eligible for such increment but there was no option to remove few employees)
(In bank interest rate for senior citizens was increased by 1.5%, software changed interest on all deposits but only new deposits were eligible for increase, so many rates were changed manually)
- Vulnerability of data and program storage media—large volumes of data and the
computer programs used to process such data may be stored on portable or fixed storage media, such as magnetic disks and tapes. These media are vulnerable to theft, or intentional or accidental destruction. (Very easy to steal electronic data)
- Programmed control procedures—the nature of computer processing allows the design of internal control procedures in computer programs. These procedures can be designed to provide controls with limited visibility (e.g. protection of data against unauthorized access may be provided by passwords). Other procedures can be designed for use with manual intervention, such as review of reports printed for exception and error reporting, and reasonableness and limit checks of data.
(Limited Visibilityà Employee Files & Salary Slips are password protected
Exception Reporting à Positive PF / Tax, Negative Overtime & Bonus
Reasonableness Checks à More than 50% Over Time / % Change in salary as compared to last month & leaves cannot cross 26 in month, overtime per day cannot cross 8 hours)