Management Notes

Reference Notes for Management

Which of the following activities would most likely be performed by EDP department?

Which of the following activities would most likely be performed by EDP department?


a) Authorising transactions
b) Parity checks
c) Distributing output
d) Correction of transactional errors

The Correct Answer Is:

  • c) Distributing output

The correct answer is c) Distributing output. The Electronic Data Processing (EDP) department, often referred to as the Information Technology (IT) department in modern organizations, is primarily responsible for managing and processing electronic data.

Distributing output is one of the core activities performed by the EDP department. Here’s a detailed explanation of why distributing output is a key responsibility of the EDP department, along with explanations for why the other options are not typically performed by this department:

c) Distributing Output:

The EDP department is responsible for managing and processing electronic data, which includes generating reports, documents, and other forms of output from computer systems and databases. Distributing output involves the dissemination of these electronic documents to their intended recipients.

This activity encompasses tasks such as printing reports, sending emails, uploading files to servers, and ensuring that relevant personnel or departments receive the information they need in a timely manner. It also includes managing the distribution channels, ensuring that data is securely shared and that access is appropriately controlled.

Distributing output is a crucial function of the EDP department because it ensures that the results of data processing are made available to end-users, enabling informed decision-making and operational continuity.

Now, let’s explore why the other options are not typically performed by the EDP department:

a) Authorizing Transactions:

The authorization of transactions is a critical control function that typically falls outside the scope of the EDP department. Authorizing transactions involves approving and validating financial or operational activities to ensure they comply with company policies and procedures.

This responsibility is often assigned to individuals or departments responsible for governance, risk management, and compliance, such as the finance department or management.

While the EDP department may develop and maintain the technology systems used for transaction processing, the actual authorization of transactions is usually the responsibility of non-EDP personnel who ensure that transactions are legitimate and conform to company guidelines.

b) Parity Checks:

Parity checks are a method of error detection used in computer systems to identify and correct errors in data storage or transmission. These checks involve verifying that data has been accurately recorded or transferred by examining its binary representation and confirming that the number of set bits follows a particular pattern (even or odd parity).

Parity checks are a technical aspect of data integrity and are typically conducted at the hardware and operating system levels. While the EDP department plays a role in configuring and maintaining systems that use parity checks, the actual execution of parity checks is a lower-level technical operation and is not a primary function of the department.

d) Correction of Transactional Errors:

The correction of transactional errors, similar to authorizing transactions, falls under the purview of specific business units or departments rather than the EDP department. When errors occur in transactions, it is the responsibility of the department or individuals directly involved in the transaction to correct the mistakes.

These corrections may involve financial adjustments, data entry modifications, or other relevant actions. While the EDP department may assist in identifying the source of errors or providing technical support for data correction, the actual correction process is carried out by those who have the domain knowledge and context related to the specific transactions in question.

In summary, distributing output is a core activity performed by the EDP department because it involves managing and disseminating electronic documents and reports generated by computer systems.

This activity ensures that data processed by the organization’s IT systems is made available to end-users, enabling them to make informed decisions and carry out their responsibilities effectively.

On the other hand, authorizing transactions, parity checks, and the correction of transactional errors are typically not primary functions of the EDP department. These activities are often performed by other business units or departments, each with its own specialized responsibilities related to transaction approval, data integrity, and error correction.

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