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Accounting Information Systems > Exam 3 > Flashcards

Exam 3 Flashcards

(102 cards)

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1
Q

Which type, view-driven or event-driven, is described as a traditional accounting system that may incorporate some forms of IT (information technology), but its defining characteristic is its focus on the general purpose financial statements?

A

View-Driven

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2
Q

Which type, view-driven or event-driven, is described as being more complex and defined by its focus on business processes?

A

Event-Driven

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3
Q

What are 5 key problems with view-driven systems?

A

Focus on a very small group of important, recordable in AIS with DR and CR, business events; Periodic, outdated; Only captures limited data from transactions; Limit decision making information; Internal Controls often protective and expensive.

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4
Q

What do Event-driven systems do that view-driven do not?

A

Capture more data from individual transactions, Organize data to be accessible and understood by variety of people; Can answer questions about inventory transactions

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5
Q

What is the name of the documentation technique designed to facilitate the design and implementation of event-driven AIS?

A

REA Modeling

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6
Q

What does the REA in REA Modeling stand for?

A

Resources, Events, and Agents

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7
Q

Name the 3 categories of “events”

A

Operating, Information and Decision/Management Events

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8
Q

Which type of “events” focus on activities involved with providing goods and services to customers?

A

Operating Events

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9
Q

Which type of “events” deal with preparing financial statements or updating accounting records?

A

Information Events

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10
Q

Which type of “events” involve human decision making?

A

Decision/Management Events

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11
Q

What types of events are captured in the REA Model?

A

Operating and Information Events

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12
Q

Which of the 3 elements of an REA model have people involved in the information system and where are they located on an REA Model?

A

Agents, Right

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13
Q

What type of agent includes employees in all departments?

A

Internal Agent

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14
Q

What type of agent includes customers, vendors, and other stakeholders?

A

External Agent

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15
Q

Which of the 3 elements of an REA model include things agents need to complete the events and where are they located on an REA Model?

A

Resources, Left

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16
Q

Which of the 3 elements of an REA model appear in the middle?

A

Events

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17
Q

In an REA Model, what tells an accounting professional about the relationship between its elements?

A

Cardinalities

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18
Q

When Establishing cardinalities, what ?’s must be asked?

A

For each inventory item, what is the minimum/maximum number of Order events involved? For each Order event, what is the minimum/maximum number of inventory items involved?

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19
Q

Which normal form eliminate repeating groups; each field contains single value, and no dupes exist

A

1st Normal Form - 1NF

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20
Q

Which normal form eliminates redundant data; accomplished by creating junction tables to establish data relationships

A

2nd Normal Form - 2NF

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21
Q

Which normal form eliminates columns not dependant on primary key

A

3rd Normal Form - 3NF

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22
Q

What is Referential Integrity?

A

ensures relationships are maintained; any value in a foreign key column must be present in a primary key column of related table

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23
Q

For REA modeling, when the maximum cardinalities between two elements are one and many, what must we include?

A

the primary key from the “one side” in the table on the “many side.”

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24
Q

When the maximum cardinalities are many and many, what do we need to do?

A

we need a separate table (junction) to store the relationship

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25
What Documentation model is used to describe a database and is very similar to REA models?
Entity-Relationship Diagram - ERD
26
What similarities do REA Models and ERD's have in common?
Cardinalities and Entities
27
What term means "things" about which data is stored
Entities
28
What elements in REA modeling are considered entities?
resources and agents
29
What are the differences between REA Models and ERD's (Entity-Relationship Diagram)?
Include junction tables and does not explicitly include "events," verbiage uses only nouns
30
TERMS: Language can be expanded without limit
Extensible
31
TERMS: A spec (or “part”) of XML; focused on business reporting information
Specification
32
TERMS: Basic organizational unit of the XBRL language; sets of tags
Taxonomy
33
TERMS: – Internet address where the taxonomy is stored; must be declared at the beginning of XBRL docs so the system knows where to find the meaning of each tag
Namespace
34
TERMS: Specific example, like a company’s income statement or balance sheet, of properly tagged XBRL information
Instance Document
35
How can XBRL benefit organizations?
More efficient data collection and reporting: Reduce Cost, Faster, more reliable consolidations, simplify regulatory reporting, Free comp from proprietary reporting systems. Facilitates data consumption and analysis: more time for value-added tasks, improves accuracy and reliability of financial data, faster, more efficient decision-making, and better communication with external stakeholders.
36
TERMS: Taxonomy that has to conform to a specific version of XBRL
Acknowledged Taxonomy
37
TERMS: Must conform to a specific version and to guidelines for specific taxonomy type (i.e. financial reporting)
Approved Taxonomy
38
Name 3 tagging software often built-in to business apps:
Peachtree, Quickbooks and Excel
39
Name 3 stand-alone tagging tools:
EZ-XBRL, Crossfire, UB Matrix
40
What are the risks associated with using XBRL?
Compromised data (theft, loss, manipulation), Tagging errors, Hardware/Software Failure, Inappropriate/missing authorizations and inappropriate taxonomy selection
41
Each tag in XBRL includes:
Taxonomy used, Element Name, Time Data, Currency Data and Number of Decimals. EX: 100000
42
What do the elements of tags in XBRL include with labels?
Capital letters EX:“AssetsHeldSale”
43
What are tags enclosed in?
Brackets < >
44
What do XBRL tags and HTML have in common?
Similar "look" and feel of beginning and endings of tag
45
Many XBRL taxonomies are _________-_______?
Country-based
46
IFRS & Global Ledger taxonomies are ______-______?
Country-Independent
47
Nearly all Tagging is _________.
Automated
48
What is the purpose of XBRL?
Tool for labeling financial data, providing context for those data, enabling faster/more efficient (and universal) interpretation.
49
XBRL is ____ ______, and is part of _____.
Open Source; XML (extensible markup)
50
XBRL is software and hardware ________.
Independent
51
What entity requires XBRL tagging for filing?
SEC, but not GAAP
52
What is the not-for-profit consortium of over 600 organizations that build XBRL language and promote its use/adoption?
XBRL International (XBRL.org)
53
TERMS: Any business transacted over the internet or other computer networks
E-Business
54
What are the benefits of E-Business compared to traditional brick-and-mortar organizations?
Expanded marketing, reduced operating costs, streamlined operations, and faster/more efficient delivery of products/services.
55
What are the drawbacks/costs of E-Business in comparison to traditional brick-and-mortar organizations?
Network setup cost, Consequences of technology breakdowns/service interruptions, customer distrust, and the need for different, better internal controls.
56
What type of E-business includes any purchase made from a company online?
B2C
57
What type of E-business includes sales directly to companies?
B2B
58
What type of E-business includes IRS, NC DMV?
G2C
59
What type of E-business includes SEC's EDGAR, IRS?
G2B
60
What type of E-business includes eBay and Craigslist?
C2C
61
TERMS: Modular relational database designed to provide comprehensive, integrated information for decision making
ERP System
62
What does ERP system stand for?
Enterprise Resource Planning Systems
63
In an ERP system, what module captures customer info, transaction history, preferences, contacts, referrals, etc.
Customer Relationship Management
64
In an ERP system, what module captures employee info, from basic to performance & development plans
HR
65
In an ERP system, what module captures vendor info, transaction history
Supply Chain
66
In an ERP system, what module captures AIS, budget/forecast, etc.
Financial Management
67
What are the common causes of an ERP system failure?
Poor leadership, Poor underlying business processes , Unrealistic expectations , Bad project management, Lack of training, Mismatch between ERP system and org structure/processes, Bad data, ERP implementation seen as just an IT project, and Technical difficulties/insufficient hardware
68
What are the conditions for success of an ERP system?
Organizational Commitment (starting at the top of org), Clear Communication (Everyone needs to understand the goals of ERP implementation), View ERP as an enterprise-wide venture (Involvement from everyone, not just technology functions), Compatible ERP System, Resolve Multisite Issues (multiple sites make implementing more complicated), and Accurate data (fix before implementation)
69
Name the benefits of using an Application Service Provider with respect to E-Business.
Lower cost, Increased flexibility, Potential customer service improvement, Disaster recovery/continuity
70
Name the risks of using an Application Service Provider with respect to E-Business.
Psychological factors, Service interruptions, Compromised data and Contracts for service
71
What is and what do Application Service Providers do?
Third party vendor, Deploys, hosts, and manages access to packaged application, and is a Software-based service provided over network
72
TERMS: According to Carters taxonomy; criminal is targeting the system or its data, impacting confidentiality, availability, and/or integrity
Target
73
TERMS: According to Carters taxonomy; Uses computer to further a criminal end, i.e. to commit the crime
Instrumentality
74
TERMS: According to Carters taxonomy;computer is not required but simplifies the criminal actions and may decrease traceability
Incidental
75
TERMS: According to Carters taxonomy; new versions of old crimes
Associated
76
TERMS: Risks and Threats to Info System; data diddling, theft of info
Fraud
77
TERMS: Risks and Threats to Info System; ranges from single entry error to programmatic error
Error
78
TERMS: Risks and Threats to Info System; lead to lost business, missed deadlines; can be accidental, willful neglect, or malicious behavior
Service interruption/Delays
79
TERMS: Risks and Threats to Info System; adhere to privacy laws and protect sensitive data, otherwise lose trust of customers, etc.
Disclosure of confidential information
80
TERMS: Risks and Threats to Info System; For profit or for fun
Intrusions
81
TERMS: Risks and Threats to Info System; trade secrets, R&D, customer info
Information Theft
82
TERMS: Risks and Threats to Info System; hard to detect and “easy” to commit; risk at every stage of processing
Information Manipulation
83
TERMS: Risks and Threats to Info System; malware – virus, worm, trojan horse, logic bomb
Malicious Software
84
TERMS: Risks and Threats to Info System; attack seeks to prevent proper operation of system and access by users/customers
Denial-of-Service
85
TERMS: Risks and Threats to Info System; digital graffiti, hacktivism
Web site defacements
86
TERMS: Risks and Threats to Info System; criminal threatens to release sensitive info, bring down site, etc. if demands are not met
Extortion
87
TERMS: Type of computer criminal; inexperienced hacker using others’ malicious code
Script Kiddies
88
TERMS: Type of computer criminal; anyone who invades an IS for malicious purpose
Hackers
89
TERMS: Type of computer criminal; hackers driven by financial gain
Cyber-criminals
90
TERMS: Type of computer criminal; spam, phishing, extortion
Organized Crime
91
TERMS: Type of computer criminal; trade secrets, customer lists, etc.
Corporate Spies
92
TERMS: Type of computer criminal; typically target financial systems, infrastructure, etc.
Terrorists
93
TERMS: Type of computer criminal; IT employees often have the keys to everything… Internal Control Issues
Insiders
94
TERMS: Internal Control issue of protection of data against unauthorized disclosure, modification, or destruction, and protection of system itself against unauthorized use, modification, or denial of service
Information Security
95
What 3 things are controls implemented to achieve in respect to information security?
Confidentiality, Data Integrity, and Availability
96
Which of the 3 things controls are implemented to achieve; provide protection from unauthorized disclosure?
Confidentiality
97
Which of the 3 things controls are implemented to achieve; free from accidental or malicious modification or destruction?
Data Integrity
98
Which of the 3 things controls are implemented to achieve; data can be obtained in required timeframe?
Availability
99
Terms: Type of information security; protect physical aspects of the IS from malicious or accidental damage
Physical Controls
100
Terms: Type of information security; safeguards built into computer/telecom systems to protect electronic aspects
Technical Controls
101
Terms: Type of information security; management constraints, operational and accountability procedures
Administrative Controls
102
What is CoBIT?
Accountability framework; Control Objectives for Information and Related Technology framework

Accounting Information Systems (2 decks)

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