Chapter 1-Introduction to AIS Flashcards
Accounting Information System
comprises the processes, procedures, and systems that capture accounting data from business processes; record the accounting data in the appropriate records; process the detailed accounting data by classifying, summarizing, and consolidating,; and report the summarized accounting data to internal & external users.
Application Controls
used specifically in accounting applications to control inputs, processing, and output.
Automated Matching in Purchasing
a system in which the software matches an invoice to its related purchase order and receiving report. Microsoft Dynamics GP does this.
Batch Processing
requires that all similar transaction be grouped together for a specified time; then this group of transactions is processed as a batch. Best suited for applications having large volumes of similar transactions that can be processed at regular intervals. Payroll is a good example.
Big Data
high-volume, high-speed information that may be so large and diverse that it demands innovative forms of IT processing.
Bit
the smallest unit of information in a computer system. a bit can have only one of two values: zero or one. All data in a computer system is reduced to a set of bits, or zeros and ones.
Business Process
a prescribed sequence of work steps performed in order to produce a desired result for the organization.
Business Process Engineering (BPR)
the purposeful and organized changing of business processes to make them more efficient.
Byte
a unit of storage that represents one character.
Corporate Governance
An elaborate system of checks and balances whereby a company’s leadership is held accountable for building shareholder value and creating confidence in the financial reporting processes.
Data Mining
The process of searching data within the data warehouse for identifiable patterns that can be used to predict future behavior.
Data Warehouse
An integrated collection of enterprise-wide data that generally includes several years of nonvolatile data, used to support management in decision making and planning.
Database
a collection of data stored on the computer in a form that allows the data to be easily accessed, retrieved, manipulated, and stored.
E-Business
the use of electronic means to enhance business processes. It encompasses all forms of online electronic trading- both consumer based and B2B.
Electronic Data Interchange (EDI)
the inter-company, computer-to-computer transfer of business documents in a standard business format.
Enterprise Resource Planning Software (ERP)
multi-module software system designed to manage all aspects of an enterprise.
Enterprise Risk Management (ERM)
a process, effected by an entity’s board of directors, management, and other personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect the entity, and mage risk to be within its risk appetite, to provide reasonable assurance regarding the achievement of entity objectives.
E-Payables & Electronic Invoice
terms that refers to web-enabled receipt and payment of vendor invoices.
Evaluated Receipt Settlement (ERS)
an invoice-less system in which computer hardware and software complete an invoice-less match comparing the purchase order with the goods received.
Field
one item within a record
File
An entire set of related records
General Controls
apply overall to the IT accounting system; they are not restricted to any particular accounting application.
Indexed Sequential Access Method (ISAM)
ISAM files are stored sequentially, but can also be accessed randomly because an index allows random access to specific records.
Information Technology
the computers, ancillary equipment, software, services, and related resources as applied to support business processes.
