Term
| Transaction Cycle that Includes Interactions between an organization and its suppliers |
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Definition
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| 3 Ways Information Improves Decision Making |
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Definition
| reduces uncertainity, provides feedback on the effectiveness of prior decisions, and identifies the situation requiring management actions |
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Term
| Information about a student (name, GPa, exc) stored where? |
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| Documents used in Expenditure Cycle |
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Definition
| purchase requisition, purchase order, receiving report |
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| records of company data sent to an external party and then returned to the system as input |
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| 3 ways to update a database |
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Definition
| Batch (paper), Online Batch ( updated online periodically), Online (updates instantly) |
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Definition
| Opportunity, Rationalization, Pressure |
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| How can we reduce fraud losses? |
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| These types of controls make sure that an organization's control environment is stable and well-managed |
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| These types of controls discover problems that are not prevented. |
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Definition
| Accept, Share, Reduce, Avoid |
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| Establishment of policies for employees to follow and then empower them |
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| Connects the organization's information system to the internet |
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| Screening individual IP packets based soley on the contents in the source and destination fields in the IP packet header |
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| Modifying a system to eliminate unnecessary services and features |
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| 3 best practices for protecting the privacy of customer's personal information |
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Definition
| notice, choice and consent, and quality |
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Term
| This type of encryption uses public and private key |
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Definition
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| Created by hashing a document and then encrypting the hash with the signer's private key |
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| Represents the length of time that the organization is willing to attempt to function without its information system |
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| Type of control that would prevent entry of a nonexistent customer number in a sales transaction |
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Definition
| CERT, CISO, patch management |
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| Training, physical access, remote access, hardening, and encryption |
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Term
| This type of Audit involves a review of general and application controls with a focus on determining if there is compliance with policies and adequate safeguarding of assets |
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Definition
| Information Systems Audit |
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| This document identifies the person making the request, the item numbers, item description and also possibly the suggested supplier |
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Definition
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Term
| Document used to establish a contract for the purchase of goods or services from a supplier |
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Definition
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Term
| Evaluated Receipt Settlement |
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Definition
| creates a two way matching process |
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Term
| 3 Data processing integrity controls |
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Definition
| running totals, batch totals, cross footing of the payroll register |
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Term
| Control to detect the failure to prepare a paycheck for a new employee before paychecks are distributed |
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Definition
| record counts of time cards submitted and time cards process |
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Term
| Document lists the current amount and year to date totals of gross pay, deductions, and net pay for one employee |
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Definition
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Term
| Important Supporting Document to authorize the transfer of funds to the payroll bank accounts |
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Definition
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Term
| customers typically pay according to each invoice and billed for every transaction. Works well with infrequent orders and can give discounts to get money quicker |
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Definition
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Term
| Pay one big some at the end of the month. |
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Definition
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Term
| 3 Steps in Expenditure Cycle |
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Term
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Definition
| Order cost + carrying cost + holding cost, isn't very accurate bc demand isn't considered |
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Term
| Materials Resource Planning |
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Definition
| model uses forecasting to gauge demand. good for commodity goods. hard to forecast services. pwc ex. |
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Term
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Definition
| no holding inventory, uses actual demand to order supplies. |
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Term
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Definition
| decide whether to accept delivery |
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Term
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Definition
| compares PO# on the packing slip with the open PO File to verify goods were received |
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Term
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Definition
| bribes, conflict of interest, extortion, and illegal gratuities |
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Term
| Professional Employer Organization (PEO) |
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Definition
| HR and Payroll activiites |
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Definition
| goal is getting employees to stay longer, delaying bonuses to the future |
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Term
| 3 threats to human resource cycle |
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Definition
| bad hires, notion of youthful indiscretion, and employment laws |
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Term
| 4 components of balance scorecard |
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Definition
| financial, customer, internal operations, and innovation and learning |
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Term
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Definition
| an event that has occurred for which the related cash flow has not yet taken place |
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Term
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Definition
| cash is received prior to event |
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Term
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Definition
| depreciation expense and bad debt expense, can't be directly attributed to a related revenue |
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Term
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Definition
| due to actual and recorded amounts |
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Term
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Definition
| lazy way of budgeting because missing opportunities |
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Term
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Definition
| derive number based on past and future, takes a long time |
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Term
| 4 responsibility accounting methods |
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Definition
| cost center, profit center, investment center, and revenue center |
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Term
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Definition
| tigger, peak, trough of disillusion, slope of enlightenment, and plateau |
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Term
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Definition
| Log analysis, intrusion detection systems, managerial reports, security testing |
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Term
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Definition
| training, user access controls, physical access, network access, device and software hardening controls |
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Term
| Transmission Control Protocol |
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Definition
| specifies procedures for dividing files an documents into packets to be sent over the internet and the methods for reassembly of the original document at the destination |
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Term
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Definition
| specifies the structure of those packets and how to route them to the proper destination |
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Term
| connection to internet steps |
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Definition
| o Internet → border router→main firewall (to the side is DMZ) → internal router→ then payroll department, sales, and inside those departments are department servers |
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Term
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Definition
| separate network that includes the wireless access point, web server, mail server, and remote access server |
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Term
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Definition
| test a numerical amount against a fixed value. Regular hours in workweek 40 hours so payroll should be less than or equal to |
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Term
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Definition
| sums a nonfinancial numeric field, such as the total of the quantity ordered filed in a batch of sales transactions |
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Term
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Definition
| -compares the ID code or account number in transaction data with similar data in the master file to verify account exists. 24 entered as sales order, computer verifies that there is that product in inventory database |
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Term
| Check Digit Verification- |
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Definition
| using the first 9 digits to calculate the 10th digit each time an ID number is entered. |
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Term
| Closed Loop Verification- |
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Definition
| checks the accuracy of input data by using it to retrieve and display other related information. |
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Term
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Definition
| -sums a field that contains monetary values, such as the total dollar amount of all sales for a batch of sales transactions |
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Definition
| risk that exists before management takes any steps to implement controls |
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Term
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Definition
| risk that exists after the controls have been applied |
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Term
| How to avoid fraud- granny's tattoo parlor |
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Definition
Training
Segregation of Duties
Enforcement of Internal Controls
Mandatory Vacations
Background Checks |
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Term
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Definition
• CEO/CFO have to sign off on financial statements to prevent fraud
• Audit Committee has to be independent
• Enhanced penalties- penalize fraud once caught more fines and more prison time
• Establishment of PCAOB-accountants oversee other accountants
• Whistleblower protection because fraud is usually caught by the employees
• Enhanced disclosures |
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Term
| 7 internal environment components |
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Definition
1. Management’s Philosophy- risk appetite and it affects the organization for strategy purposes
2. Board of Directors- need to keep mgmt in check
3. Commitment to integrity and ethics
4. Organizational Structure-clear lines of authority
5. Human Resource Standards
6. Methods of assigning authority and responsibility
7. External Influences- least because can’t be controlled |
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Term
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Definition
| verify identity of the person |
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Term
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Definition
| what person is allowed to do |
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Term
| 3 types of authentication |
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Definition
1. Something you know –password. Pro easy to create. Con-could forget it or write it down so it has higher chance of being stolen
2. Something you have- security cards Pro hard to duplication Con: Stolen
3. Biometric-finger print, eye Pro: only one person has it Con: expensive |
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Term
| what cycle does a company ship goods to customers? |
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Definition
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Term
| Where is total value of all inventory owned by an organization stored? |
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Definition
| general ledger and control account is account receivable e |
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Term
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Definition
| sales journal, cash receipts, and cash disbursements |
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Term
| 4 threats to accounting information systems |
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Definition
| natural disasters, software errors, unintentional acts, intentional acts |
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Term
| 3 c's of opportunity triangle |
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Definition
| commit, conceal, and convert |
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Term
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Definition
| attitude, justification, lack of integrity |
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Term
| Pressure that lead to employee fraud |
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Definition
| financial, emotional, and lifestyle |
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Term
| pressure that lead to financial statement fraud |
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Definition
| management characteristics, industry conditions, and financial pressure |
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Term
| COSO ERM 4 objectives that mgmt must meet to achieve company goals |
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Definition
| strategic, compliance, reporting, and operations objectives |
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Term
| A firewall that implements perimeter defense by examining only information in the packet header of a single IP packet in isolation is? |
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Definition
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Term
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Definition
| text files that only store information , can't perform any actions |
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Term
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Definition
| created by basing a document and then encrypting the hash with the signer's private key |
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Term
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Definition
| measures the amount of data that might be potentially lost as a result of a systems failure |
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Term
| Detect and prevent entry of alphabetic characters as the price of an inventory item |
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Definition
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Term
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Definition
| determines whether a numeric field is positive or negative |
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Term
| type of audit involves a review of gneral and application controls with a focus on determining if there is compliance with policies and adequate safeguarding of assets |
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Definition
| information systems audit |
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Term
| Concurrent audit technique that monitors all transactions and collects data on those that meet certain characteristics specified by the auditor |
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Definition
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Term
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Definition
| postal address to which customers send their remittances, helps improve the efficiency of processing customer payments and also enhances control over payments |
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Term
| Financial Electronic Data Interchange (FEDI) |
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Definition
| solves problems by integrating the exchange of funds (EFT) with the exchange of the remittance data (EDI) |
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Term
| Which revenue cycle activity can potentially be eliminated by technology |
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Definition
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Term
| For a good internal control who should approve credit memos? |
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Definition
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Term
| For a good internal control over customer remittances, the mailroom clerk should separate the checks from the remittance advices and send the customer payments to which department? |
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Definition
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Term
| Which of the following is performed in evaluated receipt settlement? |
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Definition
| purchase order with the receiving report |
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Term
| Which of the following expenditure cycle activities can be eliminated through the use of IT or reengineering |
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Definition
| Approving Vendor Invoices |
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Term
| Which document is used to record adjustments to accounts payable based on the return of unacceptable inventory to the supplier? |
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Definition
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Term
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Definition
| lists each employee's gross pay, payroll deductions, and net pay |
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Term
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Definition
| lists the miscellaneous voluntary deductions for each employee |
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Term
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Definition
| lists the amount of gross pay, deductions, and net pay for the current period and year to date totals for each category |
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Term
| Where do adjusting entries usually come from? |
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Definition
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Term
| Responsibility Accounting |
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Definition
| preparing performance reports that contain data only about items that a specific organizational unit controls |
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Term
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Definition
| contains specific values for financial statement elements |
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Term
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Definition
| provide information concerning the source of changes to the general ledger accounts |
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