List and Explain Three Examples of Information Processing Authorization Controls

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The Answer is Any three of the following: using levels of passwords, access to information can be limited to authorized personnel. Access can also be limited to both data and program files. Proper authorization of transactions is an input control. Proper authorization of transactions are required for the approval of credit terms, the setting of prices, the shipment of goods or provision of services, the granting of credit for returns and allowances, the determination of discounts, and the writing off of uncollectible receivables.
Pricing controls should be maintained to ensure that they are updated when required, and that any discounts (e.g., volume discounts) are properly authorized by written policies and procedures. Deviations from standard prices, or credit extended to non-approved customers should result in an exception report so that management can review and follow up on these exceptions. Delinquent accounts should be promptly identified and followed up independently from the routine servicing of accounts receivable and cash receipts. Formal policies should be in place for investigating and following up on backorders, returns, credit memos, and write-offs of uncollectible accounts.

List and Explain Three Examples of Information Processing Authorization Controls

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