Effects of Data Entry Error

Running head: EFFECTS OF DATA ENTRY ERROR
Effects of Data Entry Error
Name of the Student
Name of the University
Author’s note

1EFFECT OF DATA ENTRY ERROR
Introduction
The consequences of data entry put negative effects on the organisation. The error in
recording the data can bring huge losses for the organisation. The organisation record data to
get a fair and transparent view of the financial statements. A wrong data entry results into the
mismatch in the financial statements and that causes financial losses for the organisation.
A) Effectiveness of the data entry controls manually
Data collection and implementation is very time consuming and labour intensive
process. However, in many organisation it is found that they are still using the manual data
entry system. The manual data entry system is a slow process and is prone to errors, and
expensive to scale as the volume of the business grows. The main effectiveness of the manual
data entry system is that the third parties through internet or any other cybercrime cannot
access it the data remain safe. For this reason, many organisations still maintain the manual
method of the data entry to record the most confidential informations. In case of the
computerised system there is possibility of the data get lost or deleted for any fault of the
machine but the manual data entry system never face this problem (Hla and Teru 2015).
The manual method is also effective when the company does not have the capacity to
implement an effective computerised system of data entry, as the cost of an effective
computerised data system can be expensive. A company has to incur incidental cost for
implementing a computer based data entry system. The computer-based system does not only
requires which cost machinery but it also requires the proper training. The employees will not
be able to utilize the advantages of the computer-based stem unless they get proper training
and giving training to every individual employees in big organisations like banks is
expensive. Therefore, the manual data entry system is very cost effective and also save the
time of the organisation (Schumann, 2017). In big banks like Westpac huge number of
transactions are recorded every day so there is always a risk of the occurrence of errors while
handling so many transactions manually and this leads to the happening of the mistake of
data entry that leads to financial loss for the bank ( Davis, et al 2017).
The manual based data system is easy to use and does not have many complexities
unlike the computer-based system. The computer-based system requires different type pf
software to store variety of data in its system like Microsoft access, SAS, SQL. However, for
manual recording of data different system is not required to store different type of data. In
manual data, recording system variety of data can be store in one place and in systematic

2EFFECT OF DATA ENTRY ERROR
manner. Though Westpac bank has, computer based system but still they take the help of
manual data entry system for some specific tasks.
Effectiveness of the computer based data entry system
The computer-based system of data entry system has become the most popular
method of recording the data. The organisations try to implemented the computer based
system and remove the manual system of data entry (Bhagwan, et al 2018).
The computer based data entry ensure the speed efficiency, it also reduces the labour
cost and bring more efficiency in recording data.
The data from the computer-based system can be retrieved any time from the internet
or from the internal network.
The computer based system ensure efficiency in managing the documents and the
possibility of loss of data can be reduced it is also possible to store more data in a centralised
place.
The system also reduces the manual data entry system and thus reduces the
involvement of large number of labour in the data recording process.as the process of manual
recording of data is eliminated it will be possible to reduce the possibility of the occurrence
of the human errors in the documents (Gnjidic, et al 2015).
The computer-based system also saves the cost of maintaining high number of labours
that are required for recording the data manually. The effectiveness of the computer-based
system is that it does not require human intervention. The computer-based system also
reduces the cost of managing the data (Selwyn 2015).
There are some controlling methods in the banking system which protects the bank
from the occurrence of manual error. The input control is the key factor in this case, the input
system of the bank should be very effective as based on that factor the output or the result
will generate. In case of Westpac data entry error the lacking of the input control system,
become the main reason for the occurrence of such big mistake.
The computerised data control system increases the productivity and improve the
quality of the work. The computer-based system has three steps following which the
efficiency of the system increased. The first step stage involves the collection of data through