Gamma Ltd.

Gamma Ltd. processes millions of sales transactions through an ERP system.

The system automatically calculates the selling price, applicable discount and invoice amount based on customer master data.

The external auditor identifies the following controls:

Control P: The ERP automatically calculates invoice amounts using programmed pricing logic.

Control Q: Only authorised users can modify the pricing algorithm.

Control R: Changes to the pricing algorithm are tested in a development environment before being moved to production.

Control S: The ERP maintains an audit trail of changes made to the pricing algorithm.

Control T: The sales manager reviews a daily report of transactions exceeding ₹10 lakh.

The audit team classifies P and T as IT general controls and Q, R and S as application controls.

Which ONE of the following is the most appropriate classification?

A. P and T are application controls, while Q, R and S are IT general controls.

B. P and T are IT general controls, while Q, R and S are application controls.

C. P is an application control, Q, R and S are IT general controls, and T is a manual control.

D. P and T are application controls, Q and S are IT general controls, and R is an application control.