Scheduling the monitoring of EDP controls in online systems

The aspects of internal control which troubles executives most is the increasing dependence of their organizations on computers for financial reporting and operational effectiveness. Given the growing number of computer applications, particularly those of a more complex nature—exemplified by data base management systems, distributed networks, and online processing—there is a need for tools to help in establishing and monitoring controls in such systems. To date, those who have addressed this issue have concentrated on models for choosing between alternative systems of control. In this paper, we address what we view as a more pressing issue—that is, the development of models to guide management and systems designers in establishing the frequency of monitoring internal controls. With the increased capability for embedding audit modules in the processing system, the question of frequency of monitoring becomes a concern in the systems design, itself.