Spreadsheets are used to calculate project cost estimates.
Totals for each cost category are then keyed into the job-costing system.
What is the BEST control to ensure that data are accurately entered into the system?
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A. B. C. D.D.
The BEST control to ensure that data are accurately entered into the job-costing system is D. Reconciliation of total amounts by project.
Explanation:
A. Reasonableness checks for each cost type: This control ensures that costs entered for each category are within reasonable limits. However, it does not guarantee the accuracy of the total amount entered into the system.
B. Validity checks, preventing entry of character data: This control prevents users from entering non-numeric characters in the cost fields, but it does not ensure the accuracy of the entered data.
C. Display back of project detail after entry: This control allows users to review the entered data before submission. Although this may help identify errors, it does not guarantee the accuracy of the entered data.
D. Reconciliation of total amounts by project: This control involves verifying the total cost estimate calculated in the spreadsheet against the total entered into the job-costing system. By reconciling the two amounts, any discrepancies can be identified and corrected. This control provides the best assurance of data accuracy.
Therefore, the BEST control to ensure that data are accurately entered into the job-costing system is D. Reconciliation of total amounts by project.