What is an example of an output control?

An output control is a crucial component in accounting systems and helps ensure the accuracy and reliability of the information produced by the system. Batch control totals serve as an effective example of this type of control. Batch control totals are predefined sums or counts that are generated during the processing of data in batches. For instance, when a group of transactions is processed, the system calculates the total number of transactions or the total dollar amount involved before the batch is processed and after it is completed.

By comparing these pre-established totals to the actual output, organizations can verify that all expected data has been processed correctly and that no transactions are missing or have been altered. This provides a safeguard against errors that may occur during processing, ensuring the integrity of the financial data. In this way, batch control totals help maintain the reliability of the system’s outputs, which is essential for informed decision-making and accurate financial reporting.