Chapter 1 Flashcards
(38 cards)
accounting information system (AIS)
A system that records, processes, reports, and communicates the results of business transactions to provide financial and non-financial information to make decisions and have appropriate levels of internal controls for those transactions.
automate
The use of technology to replace human labor in automating business processes.
business value
Items, events, and interactions that determine the financial health and well-being of the firm.
Certified Information Systems Auditor (CISA)
The CISA designation identified those professionals possessing IT audit, control, and security skills. Generally, CISAs will perform IT audits to evaluate the accounting information system’s internal control design and effectiveness.
Certified Information Technology Professional (CITP)
The CITP designation identifies accountants (CPAs) with a broad range of technology knowledge and experience.
Certified Internal Auditor
The CIA designation is the certification for internal auditors and is the standard to demonstrate competency and professionalism in the internal auditing field.
customer relationship management (CRM) software
Software used to manage and nurture a firm’s interaction with its current and potential clients. CRM software often include the use of database marketing tools to learn more about the customers and to develop strong firm-to-customer relationships.
data
Raw facts of statistics that, absent a context, may have little meaning.
discretionary information
Information that is generated according to one’s own judgement.
enterprise system (ES)
A centralized database that collects data from throughout the firm. Commercialized information system that integrates and automates business processes across a firm’s value chain located within and across organizations. Also called an enterprise resource planning (ERP) system.
firm infrastructure
Activities needed to support the firm, including the CEO and finance, accounting, and legal departments.
human resource management
Activities include recruiting, hiring, training, and compensating employees.
inbound logistics
Activities associated with receiving and storing raw materials and other partially completed materials and distributing those materials to manufacturing when and where they are needed.
informate-down
The use of computer technology to provide information about business activities to employees across the firm.
informate-up
The use of computer technology to provide information about business activities to senior management.
information
Data organized in a meaningful way to the user.
information overload
The difficulty a person faces in understanding a problem and making a decision as a consequence of too much information.
information value chain
The overall transformation from a business need and business event to the collection of data and information to an ultimate decision.
mandatory information
Information that is required to be generated or provided by law or regulation.
marketing and sales activities
Activities that identify the needs and wants of their customers to help attract them to the firm’s products and buy them.
operations
Activities that transform inputs into finished goods and services.
outbound logistics
Activities that warehouse and distribute the finished goods to the customers.
procurement
Activities that involved purchasing inputs such as raw materials, supplies, and equipment.
Sarbanes-Oxley Act of 2002 (SOX)
A response to business scandals such as Enron, WorldCom, and Tyco International; requires public companies registered with the SEC and their auditors to annually access and report on the design and effectiveness of internal control over financial reporting.
