Term
| Nine reasons why documentation is important in AIS |
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Definition
| depicting how the systems works, training users, designing new systems, control development/maintenance costs, standardizing communications between users, auditing AISs (depicts audit trails), documents business processes, compliance with SOX (must doc their internal control proceedings), establish accountability |
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Term
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Definition
| Traces the physical flow of documents through an organization. Used to analyze systems for weaknesses in controls and reports. |
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Term
| Document Flow Chart Shapes (14) |
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Definition
Document
Document Flow
Journal or Ledger
Info Flow
Physical Goods Flow
Keying operation
Adding machine tape total for batch control
Permanent File (3 labels)
Manual Operation
On-page connector
Off-page connector
Annotation
Electronic data communication |
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Term
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Definition
Concentrates on the computerized data flows of AISs.
At high level depicts a system, at lower level more detailed (eg program FC).
Illustrates an audit trail through AIS. |
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Term
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Definition
Uses standardized symbols, reads from top to bottom and left to right.
Start/stop
Decision point
Processing function
Input/output (any type of medium or data)
hard-copy document
online/disk storage (2 possible)
screen display
manual keying operation
communications link
annotation |
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Term
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Definition
| In systems FC a processing symbol must always be found between an input and output symbol |
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Term
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Definition
Used in systems development process, a
tool for analyzing an existing system/planning new one. |
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Term
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Definition
| Document business processes, easy to make/read. Hierarchical if shows successively finer levels of detail (used online). Inputs, outputs, and enablers (help process achieve results) |
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Term
Process map basic symbols:
process
decision
start/stop
off-page connector
document |
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Definition
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Term
| Data Flow Diagram symbols |
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Definition
External entity
data flow
internal entity or transformation process (process always has verb in description)
data store (file) |
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Term
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Definition
1. Context Diagrams
High-level overview of the system, simple.
2. Physical Data Flow Diagrams
Higher level of level of detail than #1. Focuses on the physical entities of organization, similar to Doc FC. Each bubble numbered (eg 1.0), is name of system entity (job title).
3. Logical Data Flow Diagrams
Emphasizes tasks of participants, each bubble contains a verb. Limit to 5-7 bubbles. Can be level 0 (eg 1.0), level 2 (1.1) etc. |
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Term
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Definition
"Computer-Assisted Software Engineering"
Automate documentation tasks.
Examples include:
iGrafx
allCLEAR
SmartDraw
Visio |
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Term
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Definition
| Businesses use specialize software to automate SOX tasks. Limit access, ID risks, document and review internal controls. |
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Term
| Drawing Document Flow Chart |
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Definition
| Begin by identifying departments and groups that handle the documents (entities) and if internal or external. ID documents. Account for distribution of each copy of each document. |
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Term
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Definition
| Presentation of a program flowchart to colleagues to formally review the logic, find errors and make improvements. |
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Term
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Definition
| a collection of data and processing procedures that creates needed information for its users. |
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Term
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Definition
| Inputs (data), processes, outputs (information for users) |
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Term
| Problems created by computers in AIS (3) |
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Definition
-information overload
-can miss errors people would catch
-make audit trails more difficult to follow |
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Term
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Definition
-large SW packages used by businesses to integrate information subsystems into one application
-primarily for internal users
-should handle both financial and non-financial data |
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Term
| suspicious activity reporting (SAR) |
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Definition
| -laws that require accountants to report questionable financial transactions |
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Term
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Definition
-CEOs must certify the accuracy and completeness of financial statements
-public companies must hire independent, new auditors to review internal controls
-Section 404: Must implement and assess internal controls, auditors evaluate those assessments |
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Term
| Objective of Financial Accounting |
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Definition
-to provide relevant information
-for external parties (Investors, Creditors)
-primary outcome is Financial Statements |
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Term
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Definition
-Traces the accounting cycle
-Data flow from input to output |
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Term
| Managerial Accounting (6) |
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Definition
-to provide relevant information
-for internal users (Managers)
-more forward looking
-non-GAAP
-includes non-financial data
-Components include cost accounting and budgeting |
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Term
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Definition
"certified information systems auditors"
-given to professional info systems auditors by the ISACA. Must take exam and get special work experience. |
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Term
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Definition
| the business of providing 3rd party testimony that a client complies with a given statue, law, or similar requirement |
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Term
| Why IT is important for accounting profession (6): |
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Definition
1. IT must be compatible and support other components of AIS
2. Accountants often help clients make software and hardware purchases
3. Auditors must evaluate computerized systems
4. Often asked to evaluate the efficiency and effectiveness of existing system
5. IT affects how they work now and in the future
6. Understanding is vital to passing most certification exams |
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Term
| The AICPA’s Top 10 Information Technologies for 2008 |
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Definition
-Information Security
-Identity and Access Management
-Conforming to Assurance and Compliance Standards
-Privacy Management
-Disaster Planning and Recovery
-IT Governance
-Securing and Controlling Information Distribution
-Digital Identity and Authentication Technologies
-Wireless Technology
-Mobile and Remote Computing |
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Term
| Secondary Storage Equipment (4) |
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Definition
| USB drive, hard disk drive, cd-rom drive, DVD drive |
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Term
| Communications Equipment (3) |
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Definition
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Term
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Definition
| from banks, standardized by the American National Standards Institute |
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Term
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Definition
| a CPU component, temp data storage, RAM |
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Term
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Definition
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Term
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Definition
| wireless application protocol |
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Term
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Definition
| -Process of examining and arranging file data |
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Term
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Definition
-All record attributes (data fields) are well defined with no blank fields
-Data could be stored in a flat file (data is no order or just chronological entry) |
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Term
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Definition
-Start with data that is in 1 NF
-Establish a primary key for all data
-will be no redundancies |
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Term
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Definition
-It is in 2 NF
-Does not contain transitive dependencies |
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Term
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Definition
| when a record contains data fields in which data field A determines data field B |
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Term
| Database Management Systems (DBMS) |
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Definition
-Enables users to utilize database information more efficiently
-a separate SW system, eg Access
-not a database |
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Term
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Definition
Data Definition Language
-Enables users to define record structure (individual fields of each record).
-is unique to each DB. |
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Term
| Enforcing Referential Integrity |
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Definition
| Deleting/adding of information disallowed when it would disrupt references or reference non-existent info. |
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Term
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Definition
Data Manipulation Language
-helps create dynasets (a dynamic subset of a database created by queries) to extract information from DB |
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Term
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Definition
online analytical processing
-Complex, multidimensional data analysis to explain what happened and why (drill down capability)
-posted online
-can create pivot tables |
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Term
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Definition
Object-Oriented Database
-Contains both text data and information about set of actions taken on data fields |
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Term
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Definition
| Large collection of related data typically stored in computerized, linked files and manipulated by database management systems (DBMS) |
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Term
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Definition
| bit, byte, data field, record, file, database |
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Term
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Definition
-used or generated by events
-an object of value associated with an event and important enough you should collect info about it
-not AR or AP |
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Term
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Definition
-activities associated with a business process
-can be economic or just business but will always have a $ associated with it |
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Term
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Definition
| -people/entities associated with business activities |
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Term
| Symbols in ER diagram (4) |
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Definition
rectangle (entities)
diamond (relationship between entities)
ovals (entity attributes)
connecting lines (relationships)
Note: book just shows entities and relationships. |
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Term
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Definition
| -describes the data fields in each DB record, a data file about data |
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Term
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Definition
| -use edit tests (controls) to maintain this, prevent input errors |
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Term
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Definition
| when 2 or more users can access and edit the same file at the same time |
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Term
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Definition
-ensure that DB system performs each transaction accurately and completely.
-either process transaction entirely or not at all |
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