Term
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Definition
| Sub-committee of the Board of Directors. Overall responsibility of financial reports. |
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Term
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Definition
| Control total applied to documents within a specific period of time. |
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Term
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Definition
| Amount from processing of individual items of equivalent value - Net should be zero. |
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Term
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Definition
| Two or more employees working to commit fraud. |
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Term
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Definition
| Meaningless number used for control purposes. |
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Term
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Definition
| Separation of authorization, custody, and record keeping from handling and processing. |
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Term
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Definition
| Holding point for items awaiting further processing. |
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Term
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Definition
| Items sequences by age for followup |
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Term
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Definition
| Reinserting a corrected transaction earlier in the transaction stream. |
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Term
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Definition
| Potential financial effect of an event multiplied by its probability of occurrence. |
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Term
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Definition
1. Excessive cost
2. Deficient revenues
3. Loss of assets
4. Inaccurate accounting
5. Business interruption
6. Statutory sanctions
7. Competitive disadvantage
8. Fraud & embezzlement |
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Term
| Difference between white-collar crime and corporate crime |
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Definition
| White-collar crime benefits the employee, corporate crime benefits the organization. |
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Term
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Definition
| Revenue, Expenditure, Production, and Finance. |
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Term
| Revenue cycle control objectives (4) |
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Definition
| Customer credit authorization, prices & terms of goods set by management, shipments result in billing, billing accurately reported. |
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Term
| Expenditure cycle control objectives (3) |
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Definition
| Vendor & employee approvals, all disbursement by authorization only, amounts owed accurately reported. |
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Term
| Production cycle control objectives (2) |
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Definition
| Production plan authorized, cost of goods manufactured accurately reported. |
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Term
| Finance cycle control objectives (2) |
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Definition
| Amounts & timing of debt transactions authorized, access to cash & securities limited. |
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Term
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Definition
| Achieve reliability of financial reporting, effectiveness and efficiency of operations, and compliance with applicable laws. |
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Term
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Definition
| Control environment, risk assessment, control activities, information & communication, monitoring. |
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Term
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Definition
| Don't spend more on controls than you save in having them. |
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Term
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Definition
| Establishing specific policies and procedures to set the overall tone of the organization. |
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Term
| Audit committee reports to... |
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Definition
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Term
| Internal audit reports to... |
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Definition
| Audit committee & President |
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Term
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Definition
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Term
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Definition
| Insurance policy on a person's honesty |
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Term
| HR Policies for controls (4) |
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Definition
| Segregation of duties, supervision, job rotation & forced vacations, dual control. |
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Term
| Typical segregations of duties (3) |
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Definition
| Authorization from recording of transactions, authorization from custody of assets, and recording transactions from custody of assets. |
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Term
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Definition
| Affect all transaction processing. Data processing organization, operating procedures, equipment and data access-controls. |
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Term
| Application controls (3 types) |
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Definition
| Specific to individual applications. Consist of input, processing, and output controls. |
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Term
| Three natures of controls |
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Definition
| Preventative, detective, and corrective. |
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Term
| Responsibility of check-signing machine |
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Definition
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Term
| Customer order management business process (5) |
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Definition
| Inquiry, contract creation, order entry, shipping, billing. |
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Term
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Definition
| Inquiry does not contain delivery information. |
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Term
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Definition
| Contract to provide goods over a period of time. |
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Term
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Definition
| Document the loading of goods onto vehicles from the transportation company. |
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Term
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Definition
| Separate record for each unpaid invoice. |
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Term
| Balance-forward processing |
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Definition
| Record kept of total unpaid balance rather than just unpaid invoices. |
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Term
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Definition
| Selling A/R to a collection company to avoid record-keeping costs. |
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Term
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Definition
| Uses local dropbox locations to reduce out-of-state cheque clearance time (float). |
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Term
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Definition
| Time between cheque-signing and company has access to funds. |
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Term
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Definition
| Employees financially responsible for the assets in their possession. |
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Term
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Definition
| Processing of A/R divided by alphabet or account number per time of the month. Evens out cash flow. |
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Term
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Definition
| Company-side list of items loaded for transport. |
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Term
| Procurement/purchasing process (8) |
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Definition
| Requirement determination, source selection, quotation request, vendor selection, purchase order issuance, goods receipt, invoice verification, vendor payment. |
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Term
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Definition
| Enterprise resource planning system |
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Term
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Definition
| Materials resource planning system |
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Term
| Contract vs. scheduling agreement |
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Definition
| Scheduling agreement includes price. |
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Term
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Definition
| Contain items/vendors description, quantities, prices, locations, etc. |
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Term
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Definition
| Counters do not have access to the amounts on the purchase order. |
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Term
| Purchase transaction documents (4) |
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Definition
| Purchase requisition, purchase order, receiving report, and invoice. |
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Term
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Definition
| Final control or review technique of a purchase transaction. May be entirely human-unreadable. |
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Term
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Definition
| Paying as many invoices as possible with a single cheque. |
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Term
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Definition
| Person independent of personnel, timekeeping, or data input. |
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Term
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Definition
| Costs are distributed to particular jobs or production orders. |
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Term
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Definition
| Costs summed by department by period and applied to all units to find cost/unit. |
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Term
| Bill of materials & master operations list |
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Definition
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Term
| Inventory status reports & factor availability reports |
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Definition
| Availability of resources and machine/labour respectively. |
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Term
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Definition
| Statement of time spent per job. Used for job costing. |
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Term
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Definition
| Economic ordering quantity - minimum of inventory and carrying costs. |
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Term
| Fixed-asset accounting objectives (4) |
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Definition
| Adequate records of description, cost and location, provide appropriate depreciation, provide reevaluation for insurance and replacement-cost, and planning and controlling reports. |
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Term
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Definition
| Systematic list of organization's fixed-assets. |
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Term
| Quick-response manufacturing system |
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Definition
| Combination of CADD and CAM. |
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Term
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Definition
| Manufacturing resource planning - MRP system and associated sales, billing and purchasing systems. |
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Term
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Definition
| Costs are broken up by manufacturing activities. |
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Term
| Flexible manufacturing system |
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Definition
| CAM system that allows processes to be reorganized quickly. |
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Term
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Definition
| Mathematical method to determine mechanical characteristics (stresses under load, etc) |
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Term
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Definition
| Used as a means of identifying cost drivers in activity-based costing. |
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Term
| Statistical process control |
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Definition
| Determine if a manufacturing process is under control; compares outputs to design specs. |
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Term
| Systems planning phases (7) |
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Definition
1. Top management discussion
2. Establishing systems planning steering committee
3. Establishing objectives and constraints
4. Strategic informations systems plan
5. Identify & prioritize specific areas
6. Systems proposal
7. Assembling team for analysis and preliminary design |
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Term
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Definition
| Job security, uncertainty, and resistance to change. |
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Term
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Definition
| Analyzing outputs into a hierarchical structure using brackets. |
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Term
| Structured systems analysis |
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Definition
| Beginning with a general description and proceeding through to the very computer code. |
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Term
| Logical data flow diagram vs flowchart |
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Definition
| Analytic flowchart gives a physical description of a system, whereas a logical data flow diagram leaves it open. |
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Term
| Important database design elements (2) |
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Definition
| Integration (data sharing) and standardization. |
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Term
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Definition
| Pre-developed generic software. Convenient, but organizations can quickly become too complex to use them. |
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Term
| Systems implementation steps (3) |
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Definition
| Establishing plans and controls, executing planned activities, evaluating the new system. |
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Term
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Definition
| Depicts actual & planned times for activities. Limited in that they can't show the order activities must be completed. |
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Term
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Definition
| Related to Gantt diagram, but show the order in which activities must be completed. |
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Term
| New system testing approaches (3) |
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Definition
1. Direct (switch all systems at cutover point)
2. Parallel (run both, look for discrepancies)
3. Modular (piece by piece) |
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Term
| Project leader reports to... |
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Definition
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Term
| User members report to... |
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Definition
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Term
| Lead analyst reports to... |
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Definition
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Term
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Definition
| % of time a machine is inoperable. |
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Term
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Definition
| Report specifying the events to occur in implementation of a new system. |
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Term
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Definition
Project evaluation and review technique
Critical path method - list of critical activities |
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Term
| Auditing through the computer |
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Definition
| Reviewing and evaluating internal controls in an electronic data processing system. |
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Term
| Auditing with the computer |
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Definition
| Substantive account balance testing. |
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Term
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Definition
| Determines the degree to which internal controls can be relied on. Involves compliance testing. |
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Term
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Definition
| Confirms the existence, assesses the effectiveness, and checks continuing operation of controls. |
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Term
| Financial statement audit |
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Definition
| Substantive testing of financial statement figures. |
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Term
| Around-the-computer auditing |
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Definition
| Audits only the input and output portions of the system. |
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Term
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Definition
| Systems Development Life Cycle - Analysis, Design, and Implementation. |
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Term
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Definition
| Systems development plan (Steering committee -> management), Systems analysis report (steering committee -> VP infosystems, infosystems steering committee or top management), and a detailed design proposal (SC -> management). |
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Term
| Project leader responsibilities |
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Definition
| Establishing team, dividing responsibilities, creating phases, establishing time tables, and accounting for costs. |
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Term
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Definition
| Hardware, software and personnel performance measures, |
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Term
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Definition
| Substantive testing comparing actual outputs with a simulated one. |
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Term
| Information systems audit phases (3) |
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Definition
1. Review of information systems
2. Detailed review and evaluation
3. Testing |
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Term
| Flowchart Symbols: Input/Output, Process, Flowline, and Annotation |
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Definition
1. Parallelogram
2. Rectangle
3. Arrowed line
4. 1/2 Rectangle with dashed line |
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