9/9 Chapter 2 Flashcards Preview

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Flashcards in 9/9 Chapter 2 Deck (16)
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1

data

more relative to the eye of the beholder

2

context

data is different in different situation

3

purpose

what are things for

4

interrelatioships

cause/effect, we will find out what is causing the problem and what process it is coming from

5

risks

see what could happen if there are not proper controls

6

get down into detail

people who make the info for the different departments

7

CEO

wants to see what the sale is doing for the company

8

become the expert

we need to know how things work and if amounts are material

9

fraud

1. misstatement, cooking the books, manipulation
2.misappropriation - embezzling money, collusion, overwrite

10

material

we only care about things if they are material

11

polychotomous relationships

there are a lot of different processes and procedures within something that work together

12

systems

we have to break it down and get down to the detail

13

information system

input process store record update report any info

14

accounting information system

input process store record update report accounting info
1. source documents
2. journals
3. ledger
4. trial balance
5. Financial statements

15

enterprise resource planning

sales
inventory control
payroll
purchasing
shipping
accounting

16

Sarbanes Oxley

act that puts regulations on accounting systems