TABLE LI Categories of General and application Controls Control Type Category of Control Example of Control Ge neral ControIs Administra tion of the IT function Chief information officer or IT manager re ports to senior manageme nt and board. Segregation of It duties Responsibility for programming, operations, and data control are separated. Systems development Teams of users, systems analysts, and programme rs develop and thoroughly test softy Physical and on-line security Access to hardware is restricted, and passwords and user Ids limit access to software and data files Back-up and contingency planning back-up plans are pre pared and tested regularly throughout the Hardware controls failure or hard drive failure causes error messages on the monitor. Application Controls nput controls Pre formatted screens prompt data input personnel for information to be e nte red. Processing controls Reasonableness tests review unit-selling prices used to ess a sale Output controls The sales de partment performs post-processing review of sales transaction @2000 Prentice Hall. IncArens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. Control Type Category of Control Example of Control General ControlS Administration of the IT function Chief information officer or IT manager reports to senior management and board. Segregation of It duties Responsibility for programming, operations, and data control are separated. Systems development Teams of users, systems analysts, and programmers develop and thoroughly test software. Physical and on-line security Access to hardware is restricted, and passwords and user Ids limit access to software and data files. Back-up and contingency planning back-up plans are prepared and tested regularly throughout the year. Hardware controls failure or hard drive failure causes error messages on the monitor. Application Controls Input controls Preformatted screens prompt data input personnel for information to be entered. Processing controls Reasonableness tests review unit-selling prices used to process a sale. Output controls The sales department performs post-processing review of sales transactions. TABLE 11 - 1 Categories of General and Application Controls