You have been engaged by Central Savings and Loan Association to examine its financial statements for the year ended December 31, 19X1. The CPA who examined the financial statements at December 31, 19X0 rendered an unqualified opinion.

In January 19X1, the Association installed an online realtime computer system. Each teller in the Association's main office and seven branch offices has an online input-output terminal. Customers' mortgage payments and savings account deposits and withdrawals are recorded in the accounts by the computer from data input by the teller at the time of the transaction. The teller keys the proper account by account number and enters the information in the terminal keyboard to record the transaction. The accounting department at the main office has both punched card and typewriter input-output devices. The computer is housed at the main office.

In addition to servicing its own mortgage loans the Association acts as a mortgage servicing agency for three life insurance companies. In this latter activity the Association maintains mortgage records and serves as the collection and escrow agent for the mortgagees (the insurance companies) who pay a fee to the Association for these services.

Required:

You would expect the Association to have certain internal controls in effect because an online realtime computer system is employed. List the internal controls which should be in effect solely because this system is employed, classifying them as 1. Those controls pertaining to input of information.

2. All other types of computer controls.