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  1. Drivers for Change
    • Globalisation
    • Deregulation
    • Advances in technology (Metcalfe's Law, Moore's Law)
    • Outsourcing and Downsizing
  2. Value of Information
    • Benefits
    • - Reduce uncertainty
    • - Improve decisions
    • - Improve planning
    • - Improve scheduling

    • Costs
    • - Time and Resources
    • - Produce information
    • - Distribute information
  3. Accounting Information Systems Add Value...
    • Improve...
    • - Quality and reduce costs
    • - Efficiency and effectiveness
    • - Sharing knowledge
    • - Supply chain
    • - Internal control
    • - Decision making
  4. AIS Improves Decision Making
    • - Identify situations that require action
    • - Reduce uncertainty
    • - Provide alternative choices
    • - Provide feedback on previous decisions
    • - Provide accurate and timely information
  5. Value Chain
    • Primary
    • - Inbound logistics
    • - Operations
    • - Outbound logistics
    • - Marketing/Sales
    • - Service

    • Support
    • - Firm infrastructure
    • - Human resources
    • - Technology
    • - Purchasing
  6. Data Processing Cycle
    • Data input
    • Data processing
    • Data storage
    • Information output
  7. Ledgers
    • General
    • - Summary level data (asset, liability, equity, revenue, expense)

    • Subsidiary
    • - Detailed data for a General Ledger (Control) Account that has individual sub-accounts (A/R, A/P)
  8. Journals
    • General
    • - Infrequent or specialised transactions

    • Specialised
    • - Repetitive transactions (sales)
  9. File Types
    • Transaction
    • - Contains records of a business from a specific period of time

    • Master
    • - Permanent records
    • - Updated by transaction with the transaction file

    • Database
    • - Set of interrelated files
  10. Data Processing Activities
    1 - Create new data records

    2 - Read, relieve or view existing data records

    3 - Updating existing stored data records

    4 - Delete data or records
  11. Enterprise Resource Planning (ERP)
    Integrate an organisation's information into one overall AIS

    • ERP Modules
    • - Financial
    • - Human resources and payroll
    • - Order to cash
    • - Purchase to pay
    • - Manufacturing
    • - Project management
    • - Customer relationship management
    • - System tools
  12. ERP Advantages
    Integration of an organisation’s data and financial information

    Data is captured once

    Greater management visibility, increased monitoring

    Better access controls

    Standardises business operating procedures

    Improved customer service

    More efficient manufacturing
  13. ERP Disadvantages
    Cost

    Time-consuming to implement

    Changes to an organisation’s existing business processes can be disruptive

    Complex

    Resistance to change
  14. Business Intelligence
    Analysis data to glean insights for improved decisions and performance.
  15. Accounting System Aspects
    Store accounting data

    Analyse accounting data

    Safeguard accounting data
  16. BI Data Analytics Approaches
    • Shadow Data
    • - extracted from the operational database, often into spreadsheets that shadow the formal accounting system.

    • BI Technologies
    • - analysis tools under IT control used to extract and analyse data from operational databases and data warehouse.
  17. Enterprise Intelligent System Components
    Data storage

    Data extraction and transfer

    Data analysis

    Data visualisation
  18. ASX Corporate Governance Guidelines
    Lay solid foundation for management and oversight.

    Structure the board to add value.

    Promote ethical and responsible decision-making.

    Safeguard integrity in financial reporting.

    Make timely and balanced disclosure.

    Respect the rights of shareholders.

    Recognise and manage risk.

    Remunerate fairly and responsibly.
  19. Enterprise Risk Management - Objective Setting
    • Strategic
    • - High-level goals aligned with corporate mission

    • Operational
    • - Effectiveness and efficiency of operations

    • Reporting
    • - Complete and reliable
    • - Improve decision making

    • Compliance
    • - Laws and regulations are followed
  20. ERM Risk Response
    • Reduce
    • - Implement effective internal control

    • Accept
    • - Do nothing, accept likelihood of risk

    • Share
    • - Buy insurance, outsource, hedge

    • Avoid
    • - Do not engage in activity that produces risk
  21. Control Activities
    Proper authorisation of transactions and activities (Signature or code on document to signal authority over a process)

    Separation of duties.

    Project development and acquisition controls.

    Change management controls.

    Design and use of documents and records.

    Safeguarding assets, records, and data.

    Independent checks on performance.
  22. Internal Controls
    • Preventative (deter)
    • - Training
    • - User access controls
    • - Physical access controls
    • - Network access controls
    • - Device and software hardening controls

    • Detective (discover)
    • - Log analysis
    • - Intrusion detection
    • - Managerial reports
    • - Security testing

    • Corrective (correct)
    • - Computer Incident Response Team (Recognise, contain, recovery, follow-up)
    • - Chief Information Security Officer (CISO)
    • - Patch Management
  23. Committee Of Sponsoring Organisations (COSO) Components
    Setting objectives

    Event identification

    Risk assessment
  24. Trust Services Framework
    Security

    Confidentiality

    Privacy

    Processing Integrity

    Availability
  25. Threats to AIS
    Natural disasters and terrorist threats

    Software errors and/or equipment malfunction

    Unintentional acts (human error)

    Intentional acts (computer crimes)
  26. Reasons for Fraud
    Deceive investors or creditors

    Increase a company’s stock price

    Meet cash flow needs

    Hide company losses or other problems.
  27. Fraud Triangle
    Pressure (employee, financial)

    Opportunity (commit, conceal, convert to personal gain)

    Rationalisation (justification, attitude, lack of personal integrity)
  28. Computer Fraud
    Input (alteration, falsifying)

    Processor (unauthorised system use)

    Computer instructions (modifying software, illegal copying)

    Data (illegally using, copying, browsing, searching, or harming company data)

    Output (stealing, copying or misusing computer printouts or displayed information)
  29. Prevent and Detect Fraud
    Make fraud less likely to occur.

    Increase the difficulty of committing fraud.

    Improve detection methods.

    Reduce fraud losses.
  30. Data Entry Controls (Checks)
    Field (characters, date, integer)

    Sign (proper arithmetic sign)

    Limit (input checked against fixed value)

    Range (value in low-high range)

    Size (input within field)

    Completeness (all required data entered)

    Validity (input compared with master data to confirm existence)

    Reasonableness (logical comparisons)

    Digit Verification (computed from input value to catch typo errors)

    Prompting (input requested by system)

    Close-loop Verification (uses input data to retrieve and display related data)
  31. Batch Input Controls
    • Batch processing (Input multiple source documents at once in a group)
    •  
    • Batch totals (compare input totals to output totals)
    • - Financial
    • - Hash
    • - Record count
  32. Processing Controls
    Data matching

    File labels

    Batch total recalculation

    Cross-footing and zero balance tests

    Write-protection

    Concurrent update
  33. Output Controls
    User review

    Reconciliation 

    • Data Transmission Controls
    • - Check sums
    • - Parity checking
  34. Minimise Risks
    Preventative

    Fault tolerance

    Data Centre location

    Training

    Patch management
  35. Quick Recovery
    Back-up

    Business Continuity Plan (BCP)

    Effects of virtualisation and cloud computing
  36. Disaster Recovery Plan (DRP)
    Cold site

    Hot site

    Second Data Centre
  37. Revenue Cycle
    • Set of exchange transaction contracts between firm and customer associated with
    • - providing goods and services to customers
    • - collecting their cash payments

    • Primary objective
    • - provide the right product in the right place at the right time for the right price
  38. Revenue Cycle Business Activities
    Sales order entry

    Shipping

    Billing and accounts receivable 

    Cash collection
  39. Expenditure Cycle
    • Set of exchange transaction contracts between firm and suppliers
    • - Ordering goods from suppliers
    • - Receiving and storing goods
    • - Paying suppliers

    • Primary objective
    • - Acquire and maintain inventory, supplies and service at the lowest cost.
  40. Expenditure Cycle Business Activities
    Ordering goods and services

    Receiving and storing goods and services

    Paying suppliers
  41. Invoice Processing
    • Non-Voucher
    • - Each approved invoice is posted to individual supplier records in the accounts payable file and is then stored in an open-invoice file.
    • - When a cheque is written to pay for an invoice, the voucher package is removed from the open-invoice file, the invoice is marked paid, and then the voucher package is stored in the paid-invoice file.

    • Voucher
    • - Payment voucher is also created when a supplier invoice is approved for payment.
  42. Voucher System Advantages
    Reduce the number of cheques

    Utilise pre-sequential-numbered voucher control

    Allows separation of invoice approval from invoice payment
  43. General Ledger and Reporting Cycle (GLARC) Activities
    Update general ledger

    Post adjusting entries

    Prepare financial statements

    Produce managerial reports
  44. eXtensible Business Reporting Language (XBRL)
    Instance document

    Taxonomy

    Linkbases
  45. Balanced Scorecard
    Report that provides a multidimensional perspective of organisational performance

    • Reflects four perspectives of the organisation
    • - Financial
    • - Customer
    • - Internal operations
    • - Innovation and learning

    • Shows goals and measures
    • - Targets
    • - Actual
  46. Purchasing Software
    • Off the Shelf (OTS) Canned
    • - System capabilities for users with similar requirements

    • Turnkey System
    • - Hardware and software sold as a package

    • Application Service Provider (ASP)
    • - Software is provided to user via the internet
  47. In-House System Development
    Provides a significant competitive advantage

    • Risks
    • - Significant amounts of time required.
    • - Complexity of the system.
    • - Poor requirements defined.
    • - Insufficient planning.
    • - Inadequate communication and cooperation.
    • - Lack of qualified staff.
    • - Poor top management support.
  48. End-User Computing (EUC)
    • Advantages
    • - User creation, control and implementation
    • - Systems meet user needs
    • - Timeliness
    • - Freeing up systems resources
    • - Versatility and ease of use

    • Disadvantages
    • - Logic and development errors
    • - Inadequately tested applications
    • - Inefficient systems
    • - Poorly controlled systems
    • - Poorly documented systems
    • - Incompatible systems
    • - Redundant data
    • - Wasted resources
    • - Increased costs
  49. Outsourcing the System
    • Advantages
    • - A business solution
    • - Asset utilisation
    • - Access to greater expertise and better technology.
    • - Lower costs by standardising user applications, buying hardware at bulk prices, splitting development and maintenance costs between projects, and operating at higher volumes.
    • - Less development time.
    • - Elimination of peaks-and-valleys.
    • - Facilitates downsizing.

    • Disadvantages
    • - Inflexibility
    • - Loss of control
    • - Reduced competitive advantage
    • - Locked-in system
    • - Unfulfilled goals
    • - Poor service
    • - Increased risk
  50. Methods to Develop AIS
    Business Process Management (BPM)

    Prototyping

    Computer-Aided Software Engineering (CASE) Tools
  51. Business Process Management Systems (BPMS) Componenets
    A process engine to model and execute applications including business rules.

    Business analytics to help identify and react to business issues, trends and opportunities.

    Collaboration tools to remove communication barriers.

    A content manager to store and secure electronic documents, images and other files.
  52. Planning SDLC
    Project Development Plan

    Master Plan
  53. Planning Techniques - SDLC
    Program Evaluation and Review Technique (PERT)

    GANTT Chart
  54. Types of Resistance - SDLC
    Aggression

    Projection

    Avoidance
  55. SDLC Documentation
    Development (system description, layouts, flowcharts, test results)

    Operations (operating schedules, files/databases accessed, equipment/security requirements)

    User (teaches users how to operate, procedures manual, training materials)
  56. Types of System Testing - SDLC
    Walk-through

    Processing test data

    Acceptance tests
  57. Types of Conversions - SDLC
    Direct

    Parallel 

    Phase-In

    Pilot
  58. Database Management System (DBMS)
    Interface between software applications and the data in files
  59. Data Warehouse
    Contains both detailed and summarised data for a number of years

    Used for analysis rather than transaction processing
  60. Advantages of Database Systems
    Data Integration

    Data Sharing

    Minimising Data Redundancy and Data Inconsistency

    Data Independence

    Cross-Functional Analysis
  61. Schemas (Logical Structure of Database)
    • Conceptual Level
    • - Organisation wide view of the data

    • External Level
    • - Individual users view of the data
    • - Each view is a subschema

    • Internal Level
    • - Describes how data are stored and accessed (records, definitions, addresses, indexes)
  62. Relational Database
    Relational data model represents the conceptual and external level schemas as if data are stored in tables
  63. Database Design
    Normalisation

    Semantic Data Modelling

Card Set Information

Author:
Lea_
ID:
328220
Filename:
Chapters
Updated:
2017-02-08 23:00:52
Tags:
ACC200
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Chapters
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