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Flashcards in Final Exam Deck (61)
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1
Q

Most organizations use purchase orders to authorize inventory and other purchases. If a company’s purchase order contains a column labeled product code, it most likely uses what kind of coding?

A

Mnemonic

2
Q

Information should be evaluated based on — criteria

A

5

3
Q

Which generic element of the AIS is focused on master files, transaction files and junction files?

A

Storage

4
Q

Define AIS

A

A set of interrelated activities, documents, and technologies designed to collect data, process it, and report information to a diverse group of internal and external decision makers in organizations

5
Q

5 elements of the AIS structure

A
Inputs
Processes
Outputs
Storage
Internal controls
6
Q

Includes documents such as sales invoices and purchase orders

A

Inputs

7
Q

Includes computers and satellites

A

Processes

8
Q

Includes general purpose financial statements as well as internal reports such as variance analyses

A

Outputs

9
Q

Data stored in paper form, electronically, or a mix of both; if electronically, broken down in 3 broad file types; master files typically contain data about “things” such as inventory, customers, and vendors; transaction files usually focus on activities such as earning revenue and incurring expenses; junction files link other files together

A

Storage

10
Q

Includes daily backup of data and separation of duties

A

Internal controls

11
Q

Process of identifying, measuring, and communicating economic information to permit informed judgments and decisions by users of the information

A

Accounting definition

12
Q

That part of accounting devoted to identifying and measuring the economic information

A

Bookkeeping

13
Q

Common internals controls associated with the accounting cycle

A

Sequential numbering
Physical security
Transaction limits

14
Q

A method of efficiently aligning an organization with the wants and needs of clients is:

A

Business process management

15
Q

Motivation is determined by what 3 factors? (Also the definition of expectancy theory)

A

Expectancy
Valence
Instrumentality

16
Q

4 common chart of accounts coding systems

A

Sequential coding
Block coding
Hierarchical codes
Mnemonic codes

17
Q

Numbers are assigned in blocks; each block is reserved for a particular kind of account; example: equity accounts all start with “5”

A

Block coding

18
Q

Sophisticated form of block coding; each digit/block of digits conveys important information to people who know the code

A

Hierarchical codes

19
Q

Help people remember the meaning of the code

A

Mnemonic codes

20
Q

A process, effected by an entity’s board of directors, management and other personnel, designed to provide reasonable assurance regarding the achievement of objectives in effectiveness and efficiency of operations, reliability of financial reporting and compliance with applicable laws and regulations

A

Internal control

21
Q

COSO definition of internal control:

A

It is a process
It necessarily involves people in the organization
It is designed to provide reasonable assurance
It provides reasonable assurance in a few common areas such as operations, financial reporting, and human behavior

22
Q

4 Purposes of internal control

A

Safeguarding assets
Ensuring financial statement reliability
Promoting operational efficiency
Encouraging compliance with management’s directives

23
Q

COSO’S ERM 8 elements:

A
Internal environment
Objective setting
Event identification 
Risk assessment
Risk response
Control activities
Information and communication 
Monitoring
24
Q

5 levels of the capability maturity model

A
Chaotic 
Repeatable
Defined
Managed
Optimized
25
Q

Give the user a “big picture” look at an information system

A

Systems flowcharts

26
Q

Show the logic associated with a computer program

A

Program flowcharts

27
Q

Show the various documents involved in a system; also portray procedures performed on those documents

A

Document flowcharts

28
Q

Show the computers, printers, monitors, input devices, and other hardware elements associated with an information system

A

Hardware flowcharts

29
Q

Unlike flowcharts, DFDs incorporate — symbols

A

4

30
Q

What is the organization of DFDs vs. flowcharts?

A

DFDs: leveled sets, each depicting more detail than the last

Flowcharts: columns representing areas of responsibility

31
Q

Difference between DFD and flowchart formats

A

DFD processes are numbered in the following formats: level zero 1.0, level one 1.1, level two 1.1.1

Flowcharts: numbers can be used for on and off-page connectors, not for processes

32
Q

Difference in focus for DFDs vs. flowcharts

A

DFDs: focus on data and how they move btwn business processes, external entities, and data stores

Flowcharts: are concerned with data, but also with documents and processing tools

33
Q

Difference of lines in DFDs vs. flowcharts

A

DFDs: line represent data; they are labeled with noun phrases

Flowcharts: lines represent movement btwn processes, areas of responsibility, and the like; they are not labeled

34
Q

REA models are organized in 3 columns. What are they?

A

Resources (left)
Events (middle)
Agents (right)

35
Q

Define extensible as it relates to XBRL

A

X stands for extensible; the XBRL language is able to be extended; just like we now have words such as wifi and iPod in English, the XBRL language is extensible in that users can add new ideas and phrases to the basic XBRL w/o changing its fundamental purpose, structure, or existing terminology

36
Q

Define specification in terms of XBRL

A

Specification is a particular example of a larger group; ex: California is a specification of the US; XBRL is a specification of XML

37
Q

Define taxonomy in terms of XBRL

A

A taxonomy is a way to organize knowledge; the table of contents of a book is a taxonomy; assets, liabilities, and equity are taxonomies of a balance sheet

38
Q

Define namespace in terms of XBRL

A

An XBRL dictionary; namespaces have internet addresses(URLs) just like web pages

39
Q

Define instance document in terms of XBRL

A

Specific example of property tagged XBRL information

40
Q

Different kinds of internal controls for e-businesses as opposed to brick and mortar

A

Customer identity authentication via usernames and passwords
Control number input requirement
Billing address must match credit card address
Secure server

41
Q

Name 5 taxonomies or e-business categories

A
Business to consumer
Business to business
Govt. to consumer
Govt. to business
Consumer to consumer
42
Q

Define business to consumer

A

Purchasing online

43
Q

Define consumer to consumer

A

Transactions associated with eBay

44
Q

Define business to business

A

When two organizations do business over a computer network; ex: university bookstore may use e-business techniques to order textbooks from publishers each semester

45
Q

Define govt. to consumer

A

Ex: IRS

46
Q

Define govt. to business

A

EDGAR (SEC)

47
Q

A modular, relational database designed to provide internal organizational stakeholders with more timely, comprehensive information for decisions

A

Enterprise resource planning system

48
Q

Enterprise resource planning system is — in nature

A

Relational

49
Q

Typical models in an ERP system include

A

Financial management
Supply chain management
HR management
Customer relationship management

50
Q

Risks to information systems

A
Fraud
Error 
Service interruption delays
Disclosure of confidential information 
Intrusions
Information theft
Information manipulation
Malicious software
Denial-of-service attacks
Website defacement
Extortion
51
Q

7 types of computer criminals

A
Script kiddies
Hackers
Cyber-criminals
Organized crime 
Corporate spies
Terrorists
Insiders
52
Q

The protection of data in a system against unauthorized disclosure, modification, or destruction, and protection of the computer system itself against unauthorized use, modification, or denial of service

A

Information security

53
Q

Information security is based on what 3 fundamental principles?

A

Confidentiality
Data integrity
Availability

54
Q

3 IT controls

A

Physical
Technical
Administrative

55
Q

Sales/collection process purpose

A

To provide goods and services to clients and to collect payment from them

56
Q

Acquisition/payment process purpose

A

To obtain the resources The organization needs and to pay for them

57
Q

Acquisition/payment process steps in order

A
Request goods and services based on monitor need
Authorize a purchase
Purchase goods/services
Receive goods/services
Disburse cash
When necessary, process purchase returns
58
Q

Conversion process purpose

A

To convert direct material, direct labor, and manufacturing overhead into a finished product

59
Q

When units of product are differentiated from one another

I.E.: custom-built homes

A

Job costing

60
Q

Produced undifferentiated goods (can’t tell them apart)

A

Process costing

61
Q

Internal controls based on common risk exposures

A

Thorough background checks
Forced vacations
Adequate training and supervision