Term
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Definition
| An accounting information system is a collection of resources, such as people and equipment, designed to transform financial and other data into information |
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Term
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Definition
Management
Operations Employees |
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Term
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Definition
Stockholders & Investors
Creditors
Government Agencies
Customers
Vendors |
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Term
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Definition
| the use of information technology, which is often in the form of hardware and software |
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Term
| Electronic Data Processing Systems (EDP) or Data Processing Systems (DP) |
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Definition
| Transaction oriented data processing |
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Term
| Management Information Systems (MIS) |
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Definition
| Decision orientated information for managers |
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Term
| Decision Support Systems (DSS) |
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Definition
| Data is processed in a decision making format for the user |
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Term
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Definition
| Decision models assist in making expert decisions based on specific information |
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Term
| Executive Information Systems (EIS) |
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Definition
| Assists with strategic decisions for top management |
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Term
| Accounting Information Systems (AIS) |
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Definition
Records accounting data and turns it into information
NOTE: The term AIS is often used in a wider context to include IT (hardware & software), transactions, as well as how the system works |
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Term
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Definition
| allows transactions and subsequently journal entries to be recorded automatically, with little to no interaction from humans |
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Term
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Definition
| this allows large amounts of data to be stored in an organized manner |
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Term
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Definition
| systems can now communicate with other systems or technologies, thus further increasing the productivity |
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Term
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Definition
| Enterprise Resource Planning |
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Term
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Definition
Allow companies to maintain one database and reduce data redundancy
Allows various departments within an organization to share data and communicate more freely
Streamline processes |
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Term
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Definition
Difficult and expensive to implement an ERP
Not all companies reap all of the potential benefits of an ERP, not using the functionality fully
ERP’s are built for the majority of businesses and it may not fit the specific needs of your company |
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Term
| What is an internal control? |
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Definition
| Process within an organization designed to assist in the achievement of the company’s goals and objectives |
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Term
| What are the 3 objectives of Internal Controls? |
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Definition
1.Reliability of financial reporting
2.Effectiveness and efficiency of operations
3.Compliance with applicable laws and regulations |
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Term
| 5 Components of an Internal Control Process |
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Definition
1.Control Environment
2.Risk Assessment
3.Control Activities
4.Information & Communication
5.Monitoring |
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Term
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Definition
| hands on use of computers by individuals within an organization |
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Term
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Definition
| allows for individuals to access applications through the use of the Internet |
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