AIS

Question 1

> specialized subset of information system that processes financial transactions.

Answer 1

Accounting Information System

Question 2

> flows of information into and outdo the organization

Answer 2

Information Flows

Question 3

external users

Answer 3

Trading Partners

Question 4

> entities outside the organization with a direct or indirect interest in the firm, such
as stockholders, financial institutions, and government agencies

Answer 4

Stakeholders

Question 5

> set of formal procedures by which data are collected, processed to information,
and distributed to others

Answer 5

Information System

Question 6

> processes non-financial transactions not normally processed by traditional AIS.

Answer 6

Management Information System

Question 7

> an event that affects or is of interest to the organization
can either be financial or nonfinancial

Answer 7

Transaction

Question 8

> Economic event that affects the assets and equities of the organization.

Answer 8

Financial Transaction

Question 9

> do not meet the narrow definition of a financial transaction.

Answer 9

Non-financial Transaction

Question 10

produces traditional financial statement (financial statement, balance sheet,
statement of cash flows)

Answer 10

GEneral Ledger/Financial Reporting System

Question 11

organization has few or no choices in the information it provides.

Answer 11

Non-discretionary Reporting

Question 12

provides internal financing information needed to manage a business.

Answer 12

Management Reporting System

Question 13

organization can choose what information to report and how to organize
it

Answer 13

Discretionary

Question 14

model that describes all information systems

Answer 14

General Model for Accounting Information System

Question 15

> users for whom the system is built.
internal users

Answer 15

End Users

Question 16

reditors, stockholders, potential investors, regulatory agencies, tax authorities,
suppliers, and customers

Answer 16

External Users

Question 17

> management in all levels of the organization as well as the operations personnel.

Answer 17

INternal Users

Question 18

contracting with a third party vendor to take over the costs,
risks, and responsibilities a

Answer 18

IT Outsourcing

Question 19

• location-independent computing variant of IT outSourcing
  whereby shared data centers deliver hosted IT service over the internet

Answer 19

Cloud Computing

Question 20

service providers host applications for client
organizations over a private network or the internet.

Answer 20

Software as a Service

Question 21

provision of computing power and disk
disk space to client firms who access it from desktop PCs

Answer 21

i. Infrastructure as a Service

Question 22

> responsible for effective functioning of the software and hardware that
constitute the organization’s network.
configuring, implementing, and maintaining network equipment..

Answer 22

Network Administration

Question 23

system assembled of prefabricated software
components

Answer 23

Enterprise resource Planning

Question 24

is the software development process

Answer 24

Systems Development Life Cycle

Question 25

built to individual specifications

Answer 25

Custom Software

Question 26

- completely finished and tested systems that are ready for implementation.

Answer 26

Turnkey Systems

Question 27

pre-coded software that user purchases from a software vendor.

Answer 27

Commercial Software

Question 28

reorganizing the IT function into small information processing units (IPUs) that are distributed to end users and placed under their control

Answer 28

Distributed Data Processing

Question 29

- all data processing is performed by one or more large computers, housed at a central site, that serve users. Throughout the organization

Answer 29

Centralized Data Processing

Question 30

keeps the firm’s machinery and other manufacturing facilities in running order.

Answer 30

Maintenance

Question 31

ensure that finished goods meet the firm’s quality standards.

Answer 31

Quality Control

Question 32

scheduling of flow of materials, labor, and machinery to efficiently meet the production needs

Answer 32

Production Planning -

Question 33

most typical.

Answer 33

Business Function

Question 34

separated for divisions only.

Answer 34

. Product Line

Question 35

grouped according to geography

Answer 35

Geographical

Question 36

Segments are functional units of a business organization

Answer 36

Functional Segmentation

Question 37

compilation of all records.

Answer 37

file

Question 38

combined set of all attributes

Answer 38

Records

Question 39

logical, relevant, and independent characteristics

Answer 39

attributes

Question 40

special software system that is programmed to know which data element each user is to authorized to access

Answer 40

Database Management

Question 41

process of compiling, arranging, formatting, and presenting information to others.

Answer 41

Information Generation

Question 42

> group that manages the computer resources used to perform the day-to-day processing of transactions

Answer 42

Data Processing

Question 43

first operational stage in the information system

Answer 43

Data Collection

Question 44

> financial transactions that enter the information system. > can either be from internal or external source)

Answer 44

Data Sources

Question 45

enables clients firms to develop and deploy onto the cloud infrastructure consume

Answer 45

Platform as a Service

Question 46

production of several alternative designs for a new system

Answer 46

Conceptual System

Question 47

- medium and method for capturing and presenting the information

Answer 47

Physical System -

Question 48

efficient information system that captures and stores data only once and makes this single. Source available to all users who need it

Answer 48

Data. Storage

Question 49

an independent auditor’s responsibility to opine as to the fair presentation of a client firm’s financial statement.

Answer 49

Attest Function -

Question 50

- tests that determine whether database contents fairly reflect the organization’s transactions.

Answer 50

Substantive Tests

Question 51

tests that establish whether internal controls are functioning properly.

Answer 51

Test. Of Controls

Question 52

- the review of computer-based components of an organization

Answer 52

IT Auditing

Question 53

- appraisal function housed within the organization.

Answer 53

Internal Audits