Untitled Deck Flashcards
(25 cards)
What is the primary role of an AIS in the value chain?
AIS helps collect, process, and report financial data to support decision-making and add value.
What are examples of business transactions in the revenue cycle?
- Sales orders
- Cash receipts
- Accounts receivable adjustments
What technologies are influencing AIS?
- AI
- Data analytics
- IoT
- Blockchain
How does blockchain improve accounting security?
It creates a decentralized, immutable ledger that prevents fraud and ensures transaction transparency.
What is the purpose of a source document?
It serves as evidence of a business transaction (e.g., invoices, purchase orders).
What is a turnaround document?
A document sent to an external party and returned with additional data (e.g., utility bills with payment stubs).
What are the differences between special journals and general journals?
- Special journals record frequent transactions (e.g., sales, purchases)
- General journals record non-routine transactions
What are control accounts, and why are they important?
They summarize subsidiary ledger balances to maintain accuracy in financial records.
What are some disadvantages of ERP systems?
- High costs
- Complexity
- Cybersecurity risks
What are the four Vs of big data?
- Volume
- Variety
- Velocity
- Veracity
What are some examples of structured and unstructured data?
- Structured: Spreadsheets, databases
- Unstructured: Emails, social media posts
What is a text qualifier in data extraction?
A character that marks the beginning and end of a text string (e.g., quotation marks in CSV files).
What are the three main types of data analytics?
- Predictive (forecasting)
- Prescriptive (decision recommendations)
- Diagnostic (cause analysis)
How can data automation improve accounting?
It reduces manual work, increases accuracy, and speeds up financial reporting.
What is data pivoting?
Reorganizing data from rows to columns for better analysis.
What is the purpose of data aggregation?
To summarize data for analysis (e.g., summing sales revenue by region).
What are examples of data validation techniques?
- Range checks
- Consistency checks
- Duplicate detection
- Reconciliation
How does data standardization improve accuracy?
By ensuring uniform formats (e.g., converting dates to YYYY-MM-DD).
What is misappropriation of assets?
Theft of company resources, such as cash or inventory.
What is fraudulent financial reporting?
Intentional misstatement of financial information to deceive stakeholders.
What is lapping fraud?
A type of fraud where an employee covers up theft by applying later payments to earlier accounts.
What is kiting in accounting fraud?
Writing checks from one bank account to another with insufficient funds to create a false balance.
What is SAS No. 99?
A standard that requires auditors to assess fraud risks in financial statements.
What are the five classifications of computer fraud?
- Input fraud
- Processor fraud
- Computer instruction fraud
- Data fraud
- Output fraud
