Accounting Information Systems 4 Flashcards

Terms Definitions
Budget
Expresses goals in financial terms.
Management oversight
encompasses the policies and procedures in place to lead the directorship of the company. The directorship is the supervisors, managers,, officers, and directors.
Stewardship
the careful and responsible oversight and use of the assets entrusted to management.
Materiality
auditors estimate the monetary amounts that are large enough to make a difference in decision making.
MAP CONTROL ACTIVITY INTO MANAGEMENT'S TRANSACTION ASSERTIONS:
Chart of Accounts
Classification
structured decisions
repetitive, routine, and understood well enough that they can be delegated to lower-level employees in the organization
query
A request for specific information from a computer.  When the information is found, it is retrieved, displayed, or analyzed as requested.  Queries are often used with a databased management system to extract data from the database
Debit Memo
records the adjustment being requested
Journal:
An accounting record in which transactions are initially recorded in chronological order.
Validity
An info quality concerning the inclusion of actual events and actual objects1
underwriter
third party that contracts with a corporation to bring new issue of securities to the public market.
Conversion processes
Type of Business process.
- planning processes
-resource management processes
-logistics
Audit trail tests
trace transactions through the application to ensure that the reporting is a correct reflection of the processing and inputs.
Unbound controls
labels, pictures, and similar items that are consistent from record to record in a form and do not display underlying database information
Information
Data that has been organized and processed
Define Economic feasibility:
The benefits cover the costs.
master file
a permanent file of records that stores cumulative information about an organization's resources and teh agents with whom it interacts.  as transactions take place, individual record within a master file are updated to keep them current.
Examples of resources?
Cash, inventory, equipment, plant facilities.
General control
make sure an organization's control environment is stable and well-managed
Voucher System
a disbursement voucher is also prepared
Error Log
contains information about data input or data processing errors
Sales Invoice
in the billing process, notifies customers of the amount to be paid and where to send payment
Define Data diddling:
intentional change of information. Done before, during, or after or add important system data.
logical vs physical
Logical - verb whats happening

Physical- Noun, people places oor things
Enterprise risk management
a process designed to identify potential events that may affect the entity, and manage risk to be within its risk appetite, to provide reasonable assurance regarding the achievement of entity objective.
Unqualified opinion
states that the auditors believe the financial statements are fairly and consistently presented in accordance with GAAP.
Operational feasibility
assessment of the realism of the possibility that the current employees will be able to operate the proposed IT system.
Datasheet screen
displays many records at once, making it possible to accidentally type over existing information instead of creating a new record
System
a set of two or more interreleated components taht interact to achieve a goal
What is conversion:
Going from old to new system.
give-get exchange
An event where two entities exchange item such as cash for goods or services
online, real-tme processing
the computer system processes data immediately after capture and provides updated information to the use on a timely basis
general ledger and reporting system
The information-processing oeprations involved in updating the general ledger and preparing reports that summarize the results of the organization's activities
What does agents mean?
the people or organization's participating in events (manager, employee, customer, supplier)
Receiving Report
primary document used in the receiving subsystem of the expenditure cycle, documents details baout each delivery
Remittance List
a document identifying the names and amount of all customer remittances and in accounts receivable
Ledger:
The group of accounts maintained by a company.
-Context Diagram:
A top-level, or least detailed, data flow diagram of an information system and all of its activities as a single bubble and shows the data flows into and out of the system and into and out of the external entities.4
-Group Support Systems (GSS):
Computer-based systems that supports collaborative intellectual work such as idea generation, elaboration, analysis, synthesis, information sharing, and decision making GSS/GDSS uses technology to solve the time and space dimension problems associated with group work.5
BUsiness Process Management Systems
Systems for modeling, automating, managing, and optimizing business processes; often used interchangeably with business process managemnt2
Bill of ladin
terms of agreement between the company and the carrier.
magnetic tape
a storage medium that allows only a sequential access storage type.
Employee Fraud
an employee steals cash or assets for personal gain
Types of employee fraud:
1) Inventory theft.
2)Cash receipts theft.
3) Accounts payable fraud.
4) Payroll fraud.
5) Expense account fraud
kickbacks, collusion, larceny, skimming
Form controls
objects such as text boxes and labels that appear on a form
Name Control Procedure to Prevent Threat of:
Theft of Inventory
-Physical Access Controls
-Periodic Counts of Inventory and Reconciliation of Physical Counts to Records
-Document All Transfers of Inventory
-Segregation of Duties
Organizations collect data about...
a.) events that occurb.) resources that are affected by the eventsc.) agents who participate in the events
Define direct conversion:
immediately terminates the old AIS and starts with new.
source data automation
The collection of transaction data in machine-readable form at the time and place of origin.
Define Bill of Materials
Detailed raw materials requirement for a product. (input)
Corrective controls
used to fix problem once it has occurred and has been discovered
Sign Check
determines the data in a field have the appropriate arithmetic sign
Batch Total - Hash Total
sums a nonfinancial numeric field
Picking Ticket
lists the items and quantities of each item that the customer orderd
Define a computer virus?
An attachment to other files/programs that affects computer files, operating system, or SW
Customer Self Service Software
Software that allows an organizations customer to complete an inquiry perform a task or troubleshoot problems wihtout aid of an organizations employees. extension of CRM software2
Supplier Relationship Management Software
Software that manages the interactions with the organizations that supply the goods and services to an enterprise just as CRM software streamlines the processses between the enterprise and its customers2
Customer master data
contain a record of every customer with whom we are authorized to regularly do business with. Each record includes a unique customer number and data that identify the particular characteristics of each customer, such as name, address, telephone number, industry and so forth.
IT governance committee
a group of senior managers selected to oversee the strategic management of IT. It should constantly assess the long-term strategy of the company and determine the type of IT systems to purchase, and use that will help the organization achieve its objectives. Oversees the SDLC
What does segregating Authorization and Recording Functions achieve?
It prevents an employee from falsifying records to cover up an inaccurate or false transaction that was inappropriately authorized
Data Flow Diagram (DFD)
a graphical description of the source and destination of data that shows data flow within an organization, the processes performed on the data, and how data are stored
Which way should the design team work (outputs to inputs, or inputs to outputs?)
Outputs towards inputs.
chart of accounts
A listing of all balance sheet and income statement account number codes for a particular company
Define Concurrency controls
Without this two or more users could access the same record from the same table at the same time. This is bad.
Define Computer abuse:
Unauthorized use or, or access to, a computer contrary to the wishes of the owner.
Customer credit check
this is performed to ensure that an organization does not extend more credit to a customer than is prudent. Balances over this limit may not be collectable and may not be recognizable as a sale under GAAP. . the credit check may be a simple comparison of the order amount to a credit limit, or the amount ordered might be added to outstanding orders and accounts receivable balances to ensure that the total amount owed by a customer does not exceed an authorized maximum.
What should AIS provide to top management system goals?
Long-range budget planning data, valuable control information about corporate operations, short-range operating performance.
The entity resource, what does it mean?
identifiable resources that an organization acquires and uses... ex. (cash employee, customer, building,)
Why is computer crime growing?
1) growth in computer resources2) more people knowledgeable about computers causing them to compromise computer systems.3) Step by step directions on websites stating how to break into other websites.
Sales order master data
are created on completion of a sales order. Then after the goods have been shipped, the sales order records are updated.
Advantages of EDI use with Purchase Orders
reduces costs by eliminating clerical work (printing and mailing paper docs)
-reduces time between recognition of needing to order and receiving stock
-Eliminates RISK of running out of stock
Lean Manufacturing what is its focus?
On improving the ability to meet real-time customer demands. PRODUCTION FLEXIBILITY - done by reducing waste and improving product quality.
What does Data Dictionary do?
Describes the data fields in each DB record. It is a data file about data.
Data processing cycle consists of four steps...
1.) Data input2.) Data storage3.) Data processing4.) Information output
Section 1102 Sarbanes-Oxley act
if a person or firm is found to be in violation of section 802 stiff penalities may apply
two major functions of an info system
1. mirrors and monitors actions in the operations system. recording, processing, and reporting.
2. Support ,amagerial activities including management decision making
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