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Definition
| ensures that account numbers or customers exist |
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Definition
| ensures that items make sense in relation to one another |
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Definition
| extra digit added to account number to make sure no errors were made |
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Definition
| makes sure pre established limits are not exceeded |
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Definition
| ensures that all required fields are filled in |
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Definition
| determines whether the characters in a field are of the proper type |
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Definition
| ensures that all transactions are processes once and only once |
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Definition
| counts total number of transactions processed and compares to the number that should be processed |
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Definition
| the total of all the dollars input |
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Definition
| checks that there are no obvious problems or errors |
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Definition
| ensures that computer output is distributed to only authorized users |
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Definition
| technological road map that lays out projects the company needs to keep things running properly |
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Definition
| X tries at password, then system shuts off |
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Definition
| allows log in, then shuts off and calls back at authorized location |
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Definition
| scrambles data to anyone gaining access to information cannot read it |
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Definition
| filters incoming data packets from internet |
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Term
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Definition
| having people hack your system to show you whats wrong with it |
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Term
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Definition
| computer program that can copy itself and attach to another computer program |
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Term
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Definition
| hides in a computer system, waiting to delete certain files |
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Term
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Definition
| aids unauthorized personnel to access knowledge of computer's owner without owner knowing about it. monitors activity |
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Term
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Definition
| attempts to steal credit card information through social engineering. ex. email |
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Term
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Definition
comprehensive outlines of actions a company should take before, during and after a disaster. includes:
1) alternate facility
2) list of critical applications
3) backup and recovery procedures
4) disaster recovery team
5) tests to endure plan works |
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Term
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Definition
| insurance that keeps dishonest people from applying for jobs |
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Term
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Definition
| specific things you do to achieve objectives |
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Term
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Definition
| cheapest with most net benefit |
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Term
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Definition
| more expensive that preventative, but cheaper than corrective |
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Term
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Definition
| most expensive form of control |
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Term
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Definition
| data, programs, docs, and facilities are separated from protection |
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Term
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Definition
| making backup copies of key data/apps |
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Term
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Definition
| providing help and training for employees to obtain understanding and gain cooperation |
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Definition
| tracing details to totals |
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Definition
| manager supervision used to encourage good work and fewer errors |
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Definition
| making people responsible for their actions |
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Definition
| system whose purpose is to efficiently and effectively exchange cash with suppliers for needed goods and services |
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Term
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Definition
| ensure that needed goods are requested given available resources |
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Term
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Definition
| formal or source document filled out on intranet |
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Term
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Definition
| ensure that needed goods are ordered and received on a timely basis |
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Term
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Definition
| keeps track of purchasing activities, gets best goods at lowest prices, only have one if it makes sense cost-wise |
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Term
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Definition
| goods are properly identified and safeguarded |
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Term
| accounts payable function |
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Definition
| keeps track of who to pay, when to pay, and how much to pay vendors |
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Term
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Definition
| prenumbered document that assigns numeric control to vendors invoice |
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Term
| cash disbursements function |
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Definition
| pays the suppliers the correct amount at the proper time |
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Term
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Definition
| no one person should be able to authorize, account for, and handle the assets relating to a single transaction |
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Term
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Definition
| system whose purpose is to efficiently and effectively receive cash from customers for requested goods and services |
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Term
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Definition
| accurately enters approved orders on a timely basis |
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Term
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Definition
| formal authorization to ship goods to an approved customer |
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Term
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Definition
| ensures the collectibility of customer accounts |
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Term
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Definition
| ensures that requested goods are properly identified and shipped |
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Term
| billing/accounts receivable function |
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Definition
| determines who owes the company money, how much is owed, and when the amounts are due |
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Term
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Definition
| based on shipping report and an approved sales price list |
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Term
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Definition
| accurately and safely determine what funds have been received from customers |
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Term
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Definition
| having customers send checks directly to the bank |
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Term
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Definition
| customer service department handles to make sure that they are properly authorized and tracked |
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Term
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Definition
| a process to ensure that objectives will be met |
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Term
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Definition
1)control environment
2) risk assessment
3) information and communication
4) control activities
5) monitoring |
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Term
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Definition
| weaknesses in internal control that will have no effect on financial statements |
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Term
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Definition
| small impact on financial statements |
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Term
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Definition
| a single weakness or number of significant deficiencies that could have a material effect on financial statements |
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Term
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Definition
| significant enough to affect the decisions of an informed user |
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Term
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Definition
| the attitude managers have about internal control |
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Term
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Definition
| identifies potential events that may affect the entity. responding to what might go wrong. involves potential exposure to the problem and the probability of occurrence |
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Term
| information and communication |
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Definition
| lets people know whats going on |
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Term
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Definition
| something specific you might do to minimize the likelihood of an error or irregularity |
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Term
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Definition
| a process that assesses the internal controls over time including internal auditors, budgeting, customers, and regulators |
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Term
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Definition
| cost of internal controls should not exceed the benefits |
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Term
| limitations of internal control |
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Definition
| fatigue, collusion, management override |
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Term
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Definition
| framework of interacting parts that work together to achieve an objective |
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Term
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Definition
| exists when the system objectives are not being met |
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Term
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Definition
| a thought process that analyzes and evaluates evidence from questioned sources to reach an informed judgement |
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Term
| accounting information system |
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Definition
| framework of people, technology and controls that work together to provide information needed to operate, make decisions, and file necessary reports |
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Term
| usefulness of information |
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Definition
| relevant, reliable, timely, complete, and understandable |
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Term
| control systems maturity model |
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Definition
5) optimized
4) integrated
3) formal and systemic
2) informal
1) initial
0) nonexistant |
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Term
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Definition
| automated and sophisticated techniques |
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Term
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Definition
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Term
| formal and systemic controls |
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Definition
| documentation implemented |
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Term
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Definition
| management is aware for need for controls, but is not key to business operation |
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Term
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Definition
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Term
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Definition
| incompetent, out of control |
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