Information Technology Flashcards
(247 cards)
1
Q
What is one of the most important compensating controls in a small business?
A
Engaging the owner in activities - the owner should have direct participation in business activities, including financial record keeping.
2
Q
What does Automated Transaction Processing result in?
A
Uniformity of transactions
3
Q
Which system needs a greater level of controls - manual or automated?
A
Manual
4
Q
Computer processing virtually eliminates the occurrence of what?
A
Computational error normally associated with manual processing.
5
Q
What are six risks that are still faced despite switching from a manual to an automated system?
A
- Faulty programs
- Unauthorized access
- Unauthorized changes
- Failure to update the system
- Manual intervention
- Data loss
6
Q
What are the 3 main areas of the COBIT Framework?
A
- Domains and Processes
- Information Criteria
- IT Resources
7
Q
What are the 4 domains that encompass the domains and processes of the COBIT Framework?
A
- Planning and organization
- Acquisition and implementation
- Delivery and support
- Monitoring
8
Q
What makes up the information criteria of the COBIT framework?
A
- Effectiveness
- Efficiency
- Confidentiality
- Integrity
- Availability
- Compliance
- Reliability
9
Q
What makes up the IT resources of the COBIT framework?
A
- People
- Applications
- Technology
- Facilities
- Data
10
Q
What is something that a firm may not be too concerned about when enhancing IT?
A
Cutting costs
11
Q
What are important goals of an ERP system?
A
Improving responsiveness and flexibility and aiding int he decision making process in an organization
12
Q
Define the ERP system:
A
Provides transaction process, management support, and decision making support in a single, integrated package.
13
Q
What do ERP’s attempt to eliminate?
A
Many of the problems faced by organizations when they attempted to consolidate information from operations into multiple departments, regions and divisions
14
Q
What is scalability?
A
Capacity of a system to grow with the information processing needs of an organization.
15
Q
What is SaaS?
A
Use of the cloud to use and access software.
16
Q
What is PaaS?
A
Use of the cloud to create software.
17
Q
What is IaaS?
A
Use of the cloud to access virtual software.
18
Q
What is an online analytical processing system (OLAP)?
A
Incorporates data warehouses and data mining capabilities with ERP. It primarily provides an integrated view of transactions in all parts f the system.
19
Q
What is an online transaction processing system (OLTP)?
A
Records day to day operation transactions and enhances visibility of these transactions throughout the system. It is primarily concerned with collecting data (and not analyzing it) across the organization.
20
Q
According to COSO, evaluating the quality and nature of IT department staff trainings demonstrates what?
A
A commitment to retain competent individuals in alignment with objectives.
21
Q
What is the problem with a programmer who writes applications for a firm but also has access to the file library (aka the archives?
A
She has the capability to change both live and archived copies of programs, and the changes may not be detected.
22
Q
Coding approved changes to a payroll program is an appropriate responsibility for who?
A
An application programer
23
Q
A company that sells hand carve statues from rural Indonesia online is using what to sell their product?
A
Product differentiation - competitors are unlikely able to sell the same product.
24
Q
How can IT influence product differentiation?
A
- Use the internet as a distribution channel
- IT can improve quality and can create differentiation through the use of lasers and 3D printers
- Products are increasingly digitized. So quality is better but the costs are lower.
- Info on the internet can be updated faster than catalogues - product cycles are shorter and the evolution of products is faster that allows for differentiation.
25
How can IT influence cost leadership?
1. Reduce costs, improves efficiency of production and delivery systems
2. Intense price completion due to the internet being available to almost everyone. So because of this, there could be shifts away from low cost to produce differentiation instead.
26
What is MIS?
Management information system. Supports routine management problems.
27
What is AIS?
Accounting Information System and is the subset of MIS. It pulls financial data from transaction processing systems to create financial statements and management control reports (I..e A/R agin). Yardi is an AIS.
28
What is DSS?
Decision Support Systems - provides info to managers to assist in managing non-routine issues and LT planning
29
What is an ESS?
Executive Support System - subset of DSS that are especially designed for forecasting and making long range strategic decisions, and they place greater emphasis on external data.
30
What has the greatest impact on the decisions of an effective management reporting system?
The types of decisions that need to be made
31
Petco has a system that examines large sets of data to determine patterns in client's use of facilities. What is this an example of?
DSS
32
BOD of manufacturing Co. is considering whether to expand manufacturing facilities to include a produce line Board is using both internal and external information concerning economic conditions, market projects for new product, cost of L/T financing alternatives and info about potential new competitors. What is this an example of?
ESS
33
For CPA purposes, flat file systems are?
Bad/antiquated.
34
For CPA purposes, database systems are?
Good
35
What is a data warehouse?
Archive of an organizations operational transactions (sales, purchases, production, payroll) over a period of years
36
Can external data be included in data warehouses?
Yes, external data that might be correlated with these transactions, such as economic indicators, stock prices, and exchange rates, is included.
37
What is data mining?
process of performing statistical analysis and automatically searching for patterns in large volumes of data
38
What is a data mart?
specialized version of a data warehouse that contains data that is pre-configured to meet the needs of specific departments.
39
RJ is reading an online summary production cost report and wants to known why the use of hammers used in construction of buildings is so high. What does he need to do?
Drill down. Which means he needs to move from summary to detailed information to determine its cause.
40
Database management software is considered both software and?
Midaleware
41
Customer #, Customer Name, Customer Phone, Customer Contract, Customer Credit Limit are all examples of:
Fields - also known as attributes
42
Order data elements:
Files are composed of:
Records: are composed of:
Fields: are composed of
Data Values: are composed of
Bytes (characters) are composted of:
Bits: smallest element of storage in computer system
43
Why are microcomputers more cost effective than mainframes for data entry and presentation?
Microcomputers are better suited to frequent screen updating and graphical user interfaces.
44
What does a optical disc recorder use to burn data?
A laser
45
What are a few characteristics of solid state storage?
Not a ton of storage, but has great security
46
What is RAM?
Random access memory - temporary data store
47
What are magnetic discs?
efficient way to store and retrieve individual records (secondary storage)
48
What is ROM?
Read only memory - permanently store data needed to power on computer
49
What is a CPU?
central processing uint - control center of the computer system and had 2 d principal components.
50
What is OLRT?
online real time system - example would be what is use for airline reservations.
51
What are master files?
Computerized counter part of ledgers found in manual systems.
52
What do master files do?
They maintain balances by accounts (financial statement accounts, customer accounts, vendor accounts, etc) they perform the same function as ledgers (and subsidiary ledgers) do in manual systems.
53
What will speed up the adoption of automated authentication?
Adoption of loT.
54
What is a reason for a retailer in particular to want to adopt a new payment system?
Reduce abandonment rates. Abandonment is the rate at which customers abandon purchases at check out.
55
When a firm uses data on the strength of a user's touch on a keyboard to partially authenticate users, it is using what type of authentication?
Multifactor authentication. The key word here is partially. Although this is a biometric authentication.. this is only a portion of the authentication.
56
What are HMDs?
Attach sensors to glasses or helmets and are therefore a type of loT device.
57
Automating security system changes internal controls control over access to systems is part of what?
Accounting controls
58
What are a few examples of what you can use HMDs for?
1. Real time system monitoring
2. Visualizing
3. Video conferencing
59
What is Big Data?
Creation, analysis, storage, and dissemination of extremely large data sets. It is possible now because of technologies like cloud data. It also changes a company's risk profile.
60
What is dark data?
Underused data.
61
What is loT?
"Internet f Things" and is also an example of big data.
62
What are some examples of Big Data?
Dark data, multifactor identification data, video conferencing data.
63
Is sales data big data?
It's a traditional data source.
64
What are some benefits of big data?
1. Target marketing
2. Improved system monitoring
3. Better compliance
65
Are IT Cost Savings a benefit of big data?
No, big data projects are expensive and therefore IT cost savings from big data are unlikely.
66
What are some roles for accountants in big data?
1. Assessing quality and integrity of big data
2. Integrating big data into evolutions of internal control
3. Data scientists
*They do not hold the responsibility for building them
67
What relationship does big data have with existing data warehouses?
Big Data uses existing data warehouses, but data warehousing is not a direct enabler of big data.
68
What are some enablers of big data?
Analytics, dark data, loT
69
Describe what a bitcoin is.
It is an intangible asset. It has value but no physical form. It is a form of electronic cash. The IRS taxes it as property. It is decentralized and not under the control of the government.
70
What type of network does bitcoin have?
Peer-to-peer network
71
Is bitcoin susceptible to fraud?
Yes - particularly the Ponzi scheme.
72
Describe what a block chain is.
It is a decentralized, distributed ledger. It is a non-modifiable audit trail of transactions. Everyone in the peer to peer "network" can always log, view and confirm. It is an electronic file that consists of blocks.
73
Which component of the COSO framework is Blockchain a powerful example of?
Continuous monitoring. Blockchain is an excellent example of new technology that enables continuous monitoring of the accounting system.
74
What is an important outmode of the use of blockchain?
Reduced auditing and compliance costs are an important outcome of the use of blockchain. Since the accounting transaction are stored on an automated, secured network, then auditing and compliance costs should go down.
75
Provide a short description of AI technologies.
Include reasoning and judgement abilities that do not exist in most applications. It can be biased.
76
What is an example of AI technology?
IBM's Watson system. It is used by KPMG to generate predictive analytics that help clients identify and manage F/S risk.
77
What does AI depend heavily on?
Fast computers and big data.
78
What is a goal of AI?
Machine learning.
79
What are some risks of AI?
Confirmation bias, privacy issues, prediction bias.
80
Is AI used when preparing F/S?
Preparing F/S is a standardized task that is least likely to be mostly automated into the AI system.
81
What are some examples of Accounting work with AI?
1. Working w/ an AI to harvest and clean data for use in predicting fraud risk.
2. Working on a legacy system with AI assistance, that is uneconomical to replace with AI technology
3. Develop and AI system to analyze the risk of investing in the extraction industry.
82
How should management assess cyber risk?
Management must know and understand which systems are critical to organizational objectives an understand which systems are most valuable to the organization.
83
When it comes to assessing cyber risk, who should lead the initiative?
SR management should lead the initiative and collage with business and IT stakeholders.
84
Why must you understand the industry when assessing cyber risk?
Because cyber criminals often engineer industry specific attacks.
85
Who should be notified first about cyber breaches?
The entity's external auditors.
86
What types of controls can an entity manage cyber risks?
Should attempt to prevent cyber breaching with preventative controls but also address those that occur through detect and corrective controls.
87
What are the 5 functions of the framework for cyber security?
1. Identify
2. Protect
3. Detect
4. Respond
5. Recover
88
What are the subcategories of the framework for cyber security?
- Identify and catalog external information systems
- Protect data at rest
- Investigate notifications from detection systems.
89
What are the 4 implementation tiers?
Tier 1 - Partial
Tier 2 - Risk informed
Tier 3 - Repeatable
Tier 4 - Adaptive
90
Firm is reviewing its cyber security to explore its current state and related risks as part of establishing a high level objectives for cybersecurity. In the framework of cyber security, this is an example of?
The element categories and the function identify. The organization is exploring how is it doing? at a higher level related to cyber security. Function "identify" because the focus is on high level objectives and element is categories.
91
Are IT policies particularly important in decentralized or centralized companies?
Decentralized since IT services are likely to be less under the control of management.
92
What are the five IT security principals specified by the AICPA?
1. Security
2. Availability
3. Processing Integrity
4. Confidentiality
5. Privacy
93
Which on of the five IT security principals specified by the AICPA is the foundation of systems reliability?
Security
94
Which one of the five IT security principals specified by the AICPA supports system availability for operations and monitoring?
Availability
95
Which one of the five IT security principals specified by AICPA is the completeness, validity, accuracy,y timeliness, and authorization of system processing?
Processing integrity
96
Which one of the five IT security principals is related to the collection, use, retention, disclosure, and disposal of personal info?
Privacy
97
What is defense in depth and provide an example?
Includes the implementation of multiple control layers. An example would be if an organization implements an integrated package of authentication controls related to critical systems.
98
Which one of the five IT security principals concerned when confidential information is protected consistently with the organization's commitments and agreements?
Confidentiality
99
What is GAPP?
A set of criteria to guide best practices related to data privacy.
100
A manufacturing company discovers that its rollback and retention procedures do not include data from a key system related to production quality? What does this problem relate to?
Disaster recovery preparation, which is a subcategory of IT policies.
101
Do IT policies need to relate specifically to physical or electronic threats to IT policies?
No, not necessarily .
102
What is quality as it relates to IT policies?
Statement of IT performance standard.
103
What is electronic communication use as it relates to IT policies?
Policy related to employee use of the Internet, intranet, e-mail, etc.
104
What is security as it relates to IT policies?
Guarding against physical or electronic threats to IT
105
What is B2B E-Commerce?
Includes EDI, supply change management (SCM) and EFT.
106
What is B2C E-Commerce?
Selling to consumers using the internet and web based technology.
107
What is B2E E-commerce?
Interact withe employees through portals and intranets.
108
What is B2G E- Commerce?
G stands for government. Providing property tax data online, paying parking tickets online, online contract bidding.
109
What does an e-procurment company seek bids to do?
Provide a product or service.
110
What are some risks/problems of E-Commerce?
System availability, non repudiation, failure to trust trading partners, establishing identity and authenticity, privacy of customers info, secure exchange for payment of goods/services.
111
What is EDI?
Electronic data interchange - system to system exchange of business data (I.e. purchase orders, confirmations, invoices, etc) in structured formats that allow direct processing of the data by the receiving system.
For example - Commerical cafe
112
What is CRM?
Customer relationship management - provides tools to analyze the information and develop personalized marketing plans for individual customers.
113
What is a token based payment system?
Electronic cash, smart cards, paypal
114
What is a common motivation for the use of a VAN?
Increased security
115
Encryption can be used to ensure the privacy and security of EDI messages both during _____ and when ____.
Transmission and when stored.
116
What is more secure, hardware encryption or software encryption?
Hardware encryption is inherently more secure than software based encryption. Software can be more easily accessed and altered than hardware.
117
Why is the CEO of a small entity is more likely than the CEO of a large entity to be aware of the risks arising from internal factors?
CEO of small entities will have hands on involvement with all levels of personnel.
118
An internal private cloud is not shared and is wholly owned and managed within what?
Within the entity. This is not an example of IT outsourcing.
119
What is an essential element of an internal cloud?
It is behind an entity's firewall.
120
What do effective cloud solutions required?
Require considering and integrating relevant business process, a deployment model, and a service delivery model.
121
How do you manage the lack of CSP transparency?
When the firm who purchases CSP regularly requests and receives data about the system's performances of CSP.
122
Who should test spreadsheets of a small business and why?
Spreadsheets as part of a small business computing should be reviewed and tested by an independent 3rd party to ensure they operate as expected.
123
What is most likely to be absent in a small business computer environment?
Authorization. There is a great need for a 3rd party review and testing within the small business computing environment.
124
What is an important physical security control in a small business environment?
Locking doors when offices are open and removing storage devices to secure locations.
125
What are three important things that need to happen in a small business computing environment?
1. Independent 3rd party review is especially important.
2. Back up procedures are important
3. Additional supervision of computing may be necessary
126
What is a data warehouse?
Example of online analytical processing. Combines data into subject oriented, integrated collection of data used to support the management decision making process.
127
When would a distributed processing environment be most beneficial?
When large volumes of data are generated at many locations and fast access is required. It is useful when processing is done in multiple locations. It enables the processing of large volume of transactions and fast access to data.
128
What is a hybrid/distributed database system?
A system that distributes processing to local units but also maintains a centralized database.
129
What is a decentralized system?
A system that allows for more customization to meet the needs of location operations.
130
What is a centralized system?
Similar to M:Drive - can remove in, bit it is all centralized in one location.
131
How does a peer to peer network work?
A central server is not required. It is simple, expensive, and used by LANs.
132
What are LANs?
Network confined to limited geographic area and are dedicated lines.
133
What are WANs?
National/international network that are on public or shared lines. This is the most appropriate type of network for a company that needs its network to function inexpensively in widely separated geographical areas.
134
What is a node?
A device connected to a computer network.
135
What is a twisted pair?
Low cost comparatively low quality transmission media
136
What is an extranet?
Open to an organization's associates (company suppliers, customers, business partners, etc) to access data that is relevant to them.
137
What is HTML?
Core markup language (a way of tagging text) for Web Pages.
138
What is TCP/IP?
Data control protocol/internet protocol that is the control transmission on the internet.
139
What is XBRL?
specifically designed to exchange financial info over the WW web
140
What are application firewalls?
Have the ability to do much more sophisticated checks and provide much better control (thats network firewall fo example)
141
What is a network firewall?
Perform relatively low level filtering capabilities.
142
What would data control language used in a relational database most likely include?
Commands used to control which users have various privileges relating to a database. For example, who is able to read from and write to various portions of the database.
143
What are internal disk labels read by?
Software.
144
What is used to identify data records in an accounting system file?
Headers. This has nothing to do with the formal of a word processing document - but the title was misleading.
145
What type of controls are IT facility controls?
General
146
What floor in a building is the best choice to locate a centralized computer facility?
Middle Floor.
147
What type of control would restricting physical access to the IT department be?
Preventative control. It prevents unauthorized individuals from gaining physical access to the system.
148
What are SET protocols?
Secure Electronic Transactions. These protocols are used for credit card payments so that the merchant can securely transmit payment payment information and authenticate.
149
What us cipher text?
Text that has been mathematically scrambled so its meaning cannot be determined without the use of an algorithm key.
150
What is a VPN?
Virtual Private Network. It is a secure way to create an encrypted communication tunnel to allow remote users and encryption to prevent unauthorized users from intercepting data.
151
What types of keys can be used to encrypt and decrypt messages?
Both public and private keys. Public key can only decrypt messaged encrypted with a private key and vice versa.
152
What provides the most reliable form of electronic authentication?
Digital certificates. They provide a higher level of reliability than a digital signature.
153
What occurs with a digital certificate?
An independent background check is completed ton confirm the identify of the requesting entity.
154
How does a digital signature work?
Uses public/private key encryption technology to provide means of authenticating messaged delivered I a networked environment.
155
Who has the private key in asymmetric encryption?
The receiver.
156
What is a cold site for disaster recovery?
No computers. Cheap. Off-site location.
157
What is a warm site for disaster recovery?
Has computers, not back up data. Costs a little more money than a cold site but less than a hot site.
158
What is a hot site for disaster recovery?
Has everything and is a near immediate operation. More expensive than a warm.
159
What is a mirrored site?
Fully redundant and the most expensive. It is fully staged with real time replication.
160
What types of tasks are given first priority in disaster recovery planning?
Mission critical tasks.
161
What type of disaster recovery is described by an alternative location where there will be a delivery of duplicate computer hardware
Cold site. The hardware and records are being delivered after the occurrence of a disaster.
162
What information would contribute to the development of a disaster recovery plan?
Collecting names and locations of key vendors, current hardware configuration, names of team members, and finding an alternative processing location.
163
How many remote back up sites should a firm have?
A firm should maintain at least one remote archive offsite.
164
What is a checkpoint and restart backup?
This is common with batch processing. It is the point where processing accuracy is verified. There are periodic backups and if there is a problem, you would be able to return to the most recent checkpoint and restart.
(Like and iPhone backup - when you back up to the cloud, you can return to the point where the last back up was)
165
What is a rollback and recovery backup?
Common to online, real time processing. There is a record processing transaction in a log. Periodically record master file contents and if there is a problem, you return to the good master file and reprocess subsequent transactions.
166
What are fault tolerant systems?
They operate despite component failure.
167
What are high availability clusters?
Computer clusters designed to improve service availability which is common in e-commerce.
168
What is a remote (online) backup by a managed provider?
Automated, outsource to experts, off site, and can be continuous
169
What are SANs?
Storage Area Networks which replicate data from multiple sites. Date is immediately available. This is efficient storage for services.
170
What is mirroring?
Maintaining an exact copy of the data set. It is stored in the same original format and not zipped. It is very fast, but it is very expensive.
171
What is a backdoor computer attack?
Malware program that allows an unauthorized user to gain access to the system by side stepping the normal logon procedures.
172
What is a DNS attack?
Prevents legitimate users from accessing the system by flooding the server with incomplete access requests.
173
What is a logic bomb?
Program planted in system and is dormant until an event or time.
174
What are two types of malicious software?
Virus - which is an unauthorized program that copies itself and damages data.
Worm - virus that replicates across systems, I.e. by sending email floods.
175
What is a Trojan horse?
Program hidden inside a benign file and can insert itself back door. It appears to be legitimate, but performs illicit activity when its run.
176
What are packet sniffers?
They capture packets of data s they move across a computer network. They are used to monitor performance and trouble shoot problems. However, they can also be used by hackers to capture usernames/passwords and other info to help them hack the network.
177
What is a "man in the middle?"
Impersonates sender and receiver.
178
What is Salami Fraud?
Transfers tiny amounts (penny or less) from a large # of accounts.
179
What is social engineering?
Access by tricking employees. An example would be "phishing" which sends spoofed emails with fraudulent websites to fool people entering financial/identification information.
180
What is the most appropriate data gathering techniques for a system?
Interviews
Quick questionnaires
Observations
Systems documentation
181
After changes to a source program have been made and verified, it moves to where?
Production
182
What is change control?
The process of authorizing changes, approving tests results, and copying development programs to a production library.
183
When management of a company has a lack of SOD within the application environment, with programers having access to development and production as well as having the ability to implement application code changes into production without monitoring or a quality assurance function, this is considered a deficiency in what?
Change control
184
What is a SPLMS?
Source program library management system. The functions include storing, retrieving, deleting, and documenting by who, where, and how programs are changes.
185
What are the 4 levels of documentation for processing integrity?
1. Systems Documentation
2. Program Documentation
3. Operating Documentation
4. User Documentation
186
What are some forms of documentation for processing integrity?
Questionnaires, narratives, data flow diagrams, flowcharts, decision tables, and entity relationship
187
What is a SPL?
Source Program Library - critical tot he internal control system by securing/archiving computer programs in a library, and separating them from live programs by storing the library offset.
188
What is systems documentation?
Shows the program and data files, processing logic and interactions w/ other program. (narratives, flow charts)
189
What is program documentation?
Detailed analysis of the inputed data, logic, and output of software. (flowcharts, source code listings, and record layouts)
190
What is operator documentation?
"run manual" - necessary info to execute the program (equipment, data files, computer supplies, execution commands, error messages, verifications, expected output)
191
What is user documentation?
Documents system in language so that an end user can understand when to submit data and request reroutes + procedures for verifying the accuracy of data and correcting errors.
192
What are 6 reasons as to why organizations document their accounting systems.
1. Required by law
2. Facilitates building and evaluating complex systems
3. Training
4. Improve system survival and sustainability
5. System Audits
6. Process re-engineering.
193
What are application controls?
Concern the accuracy, validity, and completeness of data processing in specific application programs. Examples are input and origination controls, processing and file controls, and output controls.
194
What is an important determinant of the correct answer regarding application controls?
Whether it is batch or OLRT processing.
195
What do input controls over transactions do?
1. Validity - transactions are authorized with no duplicates and no fictitious transactions
2. Completeness - All transactions have been captured
3. Accuracy - data has been correctly transcribed, account codes are correct, and all data fields present.
196
What are some examples of input controls?
```
Missing data check
Field check
Limit test (rang/sign test)
Validity Test
Check digit (used for batches)
Logic/Reasonableness Test
Sequent Check
Key Verification
Closed loop verification
Batch control totals (financial, hash, record counts)
Reprinted forms and pre-perfomatted screens
Default values
Automated data controls
```
197
What type of input control would catch an error like entering April 31st since there are only 30 days in April?
Logic/Reasonableness Test
198
What type of input control compares value entered in a field to a list of valid data values and an error message is displayed when the value is not found on the list?
Valid/validity test
199
What type of input control helps ensure that a valid and correct account has been entered - after code is entered the system looks up and displays additional info about selected code?
Closed loop verification
200
What is an example of a closed loop verification?
Bank clerk enters account # and customer into pop ups which ensures $$ goes into correct account.
201
How does a record count input control work?
Simple count the number of records in a batch. For example:
```
Invoice #:
101
102
103
104
105
```
Record count is 5.
202
What is an important determinant of the correct answer for questions about application controls?
Processing method
203
What are some processing controls?
Run to run controls
Internal labels ("header/trailer" records)
Audit Trail controls
204
What are the different types of files?
Master files, standing data, transaction files, system control parameter files
205
What is the primary goal of data control?
Ensure that access, change, or destruction of data and storage media is authorized.
206
What are examples of file controls?
```
Parity check
Read after write check
Echo check
Error reporting and resolution
Boundary protection
Internal labels
External labels
Version control
File Access and Updating Controls
```
207
What is the type of file control that is designed to detect errors in data transmission?
Parity Check
208
What type of file control is designed to prevent the mixing of data on a magnetic memory discs and a core storage unit?
Boundary Protection
209
What are examples of output controls?
```
Spooling (print queue) controls
Disposal of aborted print jobs
Distribution of reports
End user controls
Logging and archiving
Record retention and disposal
```
210
What will allow a review of an individual's access to the system?
A computer log.
211
How does the accounting cycle begin?
By recording business transactions in the form of journal entries.
212
What is the life cycle of journal entries?
They are first recorded in general journals. Then they are posted to ledger accounts.
213
What does the financing cycle contribute to?
The financing cycle contributes funds to the expenditure cycle, which contributes RM to the production cycle.
214
What two cycles receive cash?
Revenue and Financing. Revenue receives cash from sales and financing receives cash from financing activities (creating debt & equity for example)
215
What are the components of the Revenue cycle?
Sales -> Ship/Deliveries -> Accounts Receivable -> Getting Cash
216
What is the most important document in the billing process?
Sales invoice.
217
What is a picking ticket?
Identifies the items to be pulled for a sales order.
218
What is a bill of lading?
The authorization for and terms of a shipping agreement. It is the legal contract between seller and shipper.
219
What is a remittance advice used for?
Matching payments and invoices.
220
Why is the segregation of duties of the receiving function from the purchasing function important?
It allows for all purchase orders to be checked by a separate receiving department which should detect mis-delivered orders.
221
What is a bill of materials?
Used in production and identifies part #'s, descriptions, and quantities of each component in making a product.
222
What is a good control that you can use the bill of materials for?
Match the bill of materials to goods produced to detect over/underuse of materials
223
What is a materials requisition "ticket"?
Authorizes moving raw materials from a store room to production.
224
What is a control that you can use the materials requisition ticket for?
Match the ticket to physical materials in production to ensure that goods are not lost, stolen, damaged, or over-underused in production.
225
What are move tickets?
Identify parts to be transferred into or between the production process.
226
What is an operations list?
Sequence of steps to make a product, which equipment tot use, and how long each step requires.
227
What would be used to authorize a factor worker to move a "sprocket" from raw materials to production?
Materials requisition ticket.
228
What is a master production schedule helpful for?
Reduced excess production of inventory.
229
What is a cumulative earnings register?
YTD gross pay, net pay and deduction by employee.
230
What is a control that a cumulative earnings register can be used for?
Review the register & match it to pay rates by supervisors to confirm OT and regular rates.
231
What is a US Form 941?
Quarterly federal tax return showing all wages subject to tax and amounts withheld for income tax and FICA.
232
What is aa common fraud by a bookkeeper when it comes to employee payroll taxes and deductions?
collect but not pay the payroll tax deducted from an employee's paycheck
233
What do direct deposits lessen the likelihood of?
Physical checks deposited by someone other than an employee.
234
What is a skills inventory report helpful for?
Matching employee skills to a new job duty.
235
What is an important advantage of outsourcing payroll?
Lower fraud risk.
236
What is the purpose of closing journal entries?
Transfer balances from temporary accounts to R/E
237
What is a control account?
Master account for subsidiary accounts, which must, in the aggregate sums to the total control balance.
238
What is the lead systems analyst responsible for?
All direct contact with end users and for developing overall program logic and functionality.
239
What are application programers responsible for?
They work under the lead system analyst and are responsible for writing and testing a program
240
What are the 7 steps in a system development lifecycle?
1. Planning and Feasibility
2. Analysis
3. Design
4. Development
5. Testing
6. Implementation
7. Maintenance
241
What goes into the planning and feasibility stage of the SDLC?
the technical, economic, and operational feasibility of new system.
242
What goes into the analysis stage of the SDLC?
Analysts work with end users to understand requirements of a new system.
243
What goes into the design stage of the SDLC?
Technical and design specifications
244
What goes into the development stage of the SDLC?
Use design specifications to develop program and data files
245
What goes into the testing stage of the SDLC?
Testing to see if it meets design specifications
246
What goes into the implementation stage of the SDLC?
4 different types:
Parallel - run new and old system
Cold Turkey - drop old system, starting using new one in its place
Phased implementation
Pilot implementation - users are divided into smaller groups and trained on group at a time.
247
What goes into the maintenance stage of the SDLC?
Make sure system is working properly and make any updates based on current need.
