You are here:

Auditing/hash totals

Advertisement

Expert: Don Sadler - 4/16/2003


Question
Would a hash total in a payroll application be used to count department number or number of employees?  I am unsure as to what the hash total should really be counting and used for.

Answer
A hash total is an arbitrary total that has no value or meaning outside the context in which it was created. It is used only to validate the integrity of that data you are examining.  For example, if you were auditing a batch processing system, you might compare the transactional amount total, the number of transactions, and a hash total that you “designed” such as the sum of account numbers… not the count, nut the sum.  In other words, a sum (total) that has no meaning outside of your intended use.  If you have already summed the account numbers (or dept numbers, or whatever you choose to use), then you can compare the hash total to your known total and it should provide assurance that the processing output is complete and that all data was input for processing.

In a payroll application, it might be a sum of employee numbers.

Hope this helps.

Auditing

All Answers

Answers by Expert:

Ask Experts

Volunteer

Don Sadler

Expertise

I can answer regarding Internal Auditing - especially operational audits, audit management, and how to revitalize a dysfunctional audit department. Also give advice to "auditees" on how to deal with auditors.

I DO NOT ANSWER HOMEWORK OR CLASS PROJECT QUESTIONS. For those answers, I suggest you scan previously asked questions and search on your favorite search engine.

I ALSO DO NOT ANSWER TAX QUESTIONS AS THIS IS NOT WITHIN MY EXPERTISE. NOTE: I am not an accounting expert although i will try to help if I can... ask at your own risk.

Experience

I have worked in the public and private business management arena with experience in OMB, Resource Management, Internal Auditing and consulting. I am a former President of the Inland Empire Chapter Institute of Internal Auditors, previously held Director positions in the Orange County Information Systems Audit and Control Association and the Northern Telecom International User's Association. I am a Certified Fraud Examiner and a Certified Information Systems Auditor.

Organizations
Institute of Internal Auditors, Association of Certified Fraud Examiners, and Information Systems Audit and Control Association (ISACA)

Education/Credentials
MBA, CISA, CFE

Founder and Principal of Applied INTEGRITY Management Consulting Group

©2012 About.com, a part of The New York Times Company. All rights reserved.