IT chap

Question 1

IT components

Answer 1

Hardware
Physical computer or printer or workstation

Software
Systems and programs that work through the hardware to process information (word, etc, ERP systems)

Network
Communication media that allows multiple computers to share data

People
Needed for set up, maintenance, support

Data/Info
Data
Raw Facts (quantity,name, $)
Information organized and processed data

Question 2

IT Roles and Responsibilities

Answer 2

System Analyst

Computer Programmer

Computer Operator

File Librarian

Security Administrator

System Administrator

Data Input Clerk

Hardware Tech

End User

Question 3

IC implications IT roles and responsibilities

Answer 3

***IC implications – Accountants should not be programmers

Progrmmers should not be able to update data or information

Question 4

System Analyst

Answer 4

Internally Developed System
Design the overall application system
Work with end users to determine what they need and design system accordingly
Role is often paired with the programmer

Purchased system
More of a system integrator
Designing interfaces to connect purchased system to existing applications

Question 5

Computer Programmer

Answer 5

Writes and maintains applications

Question 6

Computer Operator

Answer 6

Scheduling, processing jobs, running or monitoring production jobs, printing and distributing report to end users
Less and less of these today
Automated

Question 7

File Librarian

Answer 7

Store and protect programs from unauthorized use and damage

Question 8

Security Administrator

Answer 8

Passwords

Question 9

System Administrator

Answer 9

DBA (database admin)
Maintaining, supporting, and often securing the database
Should not have write/update access to data

Question 10

Data Input Clerk

Answer 10

Prepare, verify, and input data to be processed

If not distributed to end users

Question 11

Hardware Tech

Answer 11

Set up and configuration and troubleshooting hardware

Question 12

End User

Answer 12

Accountants, auditors, excutives, etc

Question 13

IT Segregation of Duties

Answer 13

In addition to not allowing certain IT roles to do certain write/update data funtions OR have access to assets, certain IT jobs should never be done by the same person
System analyst and Programmers
Computer Operators and Programmers
Security Admin and Programmers

Question 14

IT Fundamentals (Hardware)

Answer 14

CPU (Central Processing Unit)
The Processor
Interprets program instructions, input and output and storage

Primary Storage
ROM vs RAM

Secondary Storage
Hard drives, CD ROMs, data tapes

Peripherals
Devices that transfer data
Input – keyboards, mice, scnner
Output – printers, speakers

Question 15

System Software

Answer 15

Programs that run the computer
Operating System
Interface between user and harware
Microsoft Windows

Database Management System (DBMS)
Software package(a tool) that controls the development, use and maintenance of the databases

Question 16

Data Storage Definitions

Answer 16

Bit – binary unit (0 or 1) with which all data is stored
Byte – 8 bits
Field – a group of Bytes (employee #)
Record –a group of fields (customer)
File – a group of records (mater and transaction)
Database – integrated collection of records and files

Question 17

Types of Databases

Answer 17

Operational
Store detailed data to support day to day
Analyical
Summarized data used by managers and extracted from operational databases
Data Warehouses
Store operational and analytical info from previous and current years
Data mining – trends, etc
End User Databases
Store data files developed by end users at their workstations
Emails, downloads, word, excel, etc

Question 18

DBMS advantages

Answer 18

Advantages
Reduction of Data Redundancy
Potential for Data Sharing
Data Independence
Data Standardization
Improved Data Security
Expanded Data Fields
Improved Efficiency

Question 19

DBMS disadvantages

Answer 19

Disadvantages
Cost (highly trained personnel needed and special backup and recovery needed)
Increased chance of breakdowns
Harder to follow audit trail

Question 20

Programming Languages

Answer 20

Fourth Generation
Enable end users to develop application with little technical assistance
Debugging
Programs contain bugs 
Desk checking – used to test software

Question 21

Networks

Answer 21

An interconnected group of computers and terminals

LAN

WAN

Question 22

LAN

Answer 22

Permit shared resources with computers in a limited area
Node – an device connected to a network
Workstation – a node used by end users
Server – node that provides services to the rest of the network
Network Interface Card (NIC) circuit board that allows the note to connect over the network

Question 23

WAN

Answer 23

Allow national and international communication

VANs – Value added networks
Privately owned networks that provide MORE then data transmission
EDI
Good security,but expensive for small companies

Question 24

System Operations

Answer 24

Transaction files –
Journals (sales journal) subledgers
A bunch of journal entries
Used to update mater files

Master files –
Ledgers
A bunch of T accounts for permanent accounts (AR)
Data at a certain point

Batch vs. OLRT processing

Question 25

Programmed Controls – when manual controls are built into a computerized environment

Answer 25

Input Controls Verify that transaction data entered is valid, complete, and accurate (error messages, double input, reasonableness limits, etc) Processing Controls All transactions are processed completely and accurately during file maintenance (after upload) Output Controls Accuracy of reports distributed

Question 26

System Risks

Answer 26

Strategic Risk The risk of choosing inappropriate technology Operating Risk Doing all the right things the wrong way (running good reports at the wrong time) Financial Risk Risk of having financial resources lost, stolen, or wasted Information Risk Risk of loss of data integrity, incomplete transactions or hackers Specific Risk Errors Intentional Acts (fraud) Distasters (fire, flood, etc)

Question 27

System Risk Management

Answer 27

Risk Management Assessing risk and mitigating them with controls the best way possible ``` Controls General Maintenance, access security and application development Application Controls Controls over processing individual transactions Physical Controls Access to computer facilities and data Segregation of Duties ```

Question 28

Access Controls

Answer 28

Limit access to program documentation, data files, computer hardware, etc Physical Access Electronic Access User Identification Codes Assignment and Maintenance of Security Levels Restrict certain functions and programs from certain people File attributes Restrict writing, reading and priveleges fro a file Firewalls Gatekeeper of the network

Question 29

Threats in an IT environment

Answer 29

Virus Piece of computer program that inserts itself into another program Requires a host and cannot be run independently Worm Special type of virus that can run independently but cannot attach itself to other program Phishing Sending phony emails to lure people to phony web sites asking for financial or personal info

Question 30

Data and Procedural Controls

Answer 30

Safeguarding Records and Files Backup Files Data Validation and Editing Techniques Programmed Modification Controls Data Encryption

Question 31

Disaster Recovery and Business Continuity

Answer 31

Alternate Processing Facilities Disaster Recovery Plans for continuing ops when destruction occurs Major players The organization, the service provider (IBM) and the disater recovery provider Steps in DR Assess risk, identify critical applications, develop a plan for handling, assign jobs Needed – IT is such an important part of a company – you could be out of business without a plan such as this

Question 32

Data Validation and Editing Techniques

Answer 32

Valid Code Tests Codes entered are checked against valid codes in a master file Check Digits Technique used to compute a digit to add to an existing number (sum of digits) Limit Tests (would catch extra zeros or an improper CC number Reasonableness Checks

Question 33

Programmed Modification Controls

Answer 33

Emails that are sent to verify you changed something on an account

Question 34

Data Encryption

Answer 34

Each party has a public and private ‘key’ Sender has the private key and it goes no where Public keys are sent out to those who sender wants Digital Signatures and Certificates Authenticate a document by using encryption

Question 35

Types of Disaster Recovery

Answer 35

Use of Recovery Service Outsource the job Internal DR Used if needed instantaneously Data is mirrored (updated and stored) in two facilities at all times Very expensive and not often done Multiple Data Center Back ups

Question 36

Cold site

Answer 36

Off-site location with all electrical connections and other physical requirements for data processing but NOT the actual equipment

Question 37

Hot site

Answer 37

Off-site location completely equipped for immediate take over of a company’s data processing