Literary Warrant for Functional Requirement #5
This requirement derives from the law, customs, standards and
professional best practices accepted by society and codified in the literature of different professions concerned with records and
recordkeeping. The warrant is as follows:
Citation Statements on Auditing Standards 53. The Auditor's Responsibility to Detect and Report Errors
Extract If a condition or circumstance differs adversely from the auditor's expectation, the auditor needs to
consider the reason for such a difference. Examples of such conditions or circumstances are the
following...Transactions selected for testing are not supported by proper documentation
Citation Institute of Internal Auditors Research Foundation. Systems Auditability and Control Report.
Module 2 Audit and Control Environment
Extract During the design of input procedures, consideration should be given to authorization, validation
and error notification and correction in order to support the following control objectives:...All
transactions are completely and accurately entered into the system for processing. The risk is that
transactions approved for processing are not entered and included in data files.
Citation American Institute of Certified Public Accountants, Codification of Statements on Auditing
Standards, Numbers 1 to 73, AU Section 326.05 : Evidential Matter, Nature of Assertions, 1994
Extract .05 Assertions about completeness deal with whether all transactions and accounts that should be
presented in the financial statements are so included. For example, management asserts that all
purchases of goods and services are recorded and are included in the financial statements. Similarly,
management asserts that notes payable in the balance sheet include all such obligations of the entity.
Citation Ian B. Gilhooley Information Systems Management, Control and Audit (Altamonte Springs, Fla.:
The Institute of Internal Auditors 1991)
Extract Completeness and accuracy--checks of this type should be part of the input validation performed
by the application system. This is typically referred to as input editing. Input edit checks can be thought
of as having two elements: (1) at the batch level, and (2) at the individual transaction level. Sequence
checks, control total reconciliation, hash total checks, crossfoot and balance, and record counts are all
controls to ensure that there is nothing missing from the batch (and that nothing has been added to the
batch). Val ID character tests, checks for missing data, val ID field checks, tests on the validity of
input codes, cross checks between data elements, limit tests, tests for zero, reasonableness tests and
check digits are all examples of individual transaction tests to ensure that the data within the transaction
is val ID for subsequent processing.
Citation "Federal Rules of Evidence" Article VIII. Historical Notes and Commentary
Extract ...the Committee concluded that the additional requirement of Section 1732 that it must have been
the regular practice of a business to make the record is a necessary further assurance of its
Citation Federal Rules of Evidence. Uniform Rules. 1990.
Extract Rule 902. Self authentication. Extrinsic evidence of authenticity as a condition precedent to
admissibility is not required with respect to the following: ... 11) Certified records of regularly
conducted activity (i) was made, at or near the time of the occurrence of the matters set forth, by (or
from information transmitted by) a person with knowledge of those matters, (ii) is kept in the course of
regularly conducted activity, and (iii) was made by the regularly conducted activity as a regular practice,
unless the sources of information or the method or circumstances of preparation indicate lack of
Citation Federal Rules of Evidence. 1990.
Extract Rule 803. Hearsay exceptions; availability of declarant immaterial. The following are not excluded
by the hearsay rule, even though the declarant is available as a witness ... 7) Absence of entry in records
kept in accordance with the provisions of paragraph (6). Evidence that a matter is not included in the
memoranda, reports, records, or data compilations, in any form, kept in accordance with the provisions
of paragraph (6), to prove the nonoccurence or nonexistence of the matter, if the matter was of a kind of
which a memorandum, report, record, or data compilation was regularly made and preserved, unless the
sources of information or other circumstances indicate lack of trustworthiness.