Acc 327 Exam 2

Front 1

Corporate Governance

Back 1

asystem of checks and balances whereby a company’s leadership is heldaccountable for building shareholdervalue and creatingconfidence in the financial reporting processes

Front 2

Tone at the Top

Back 2

setof values and behaviors in place for the corporate leaders

Front 3

Stakeholders

Back 3

areall of the different people who have some form of involvement or interest inthe business

Front 4

Shareholders

Back 4

ow a portion, or share, of the corporation.

Front 5

Board of Directors

Back 5

elected by the shareholders to direct the corporation

Front 6

Audit Committee

Back 6

a subcommittee of the board of directors. Responsible for financial matters, including reporting, controls, and the audit function

Front 7

Management

Back 7

often divided into layers; top management, middle management, and supervisors.

Front 8

Employees

Back 8

carry out the day-to-day operations and administrative functions of the company

Front 9

Internal Auditors

Back 9

employees of the corporation who help management establish and monitor internal controls by continuously looking for "red flag."

Front 10

Communities

Back 10

have a stake in those corporations because of their impact on social, environmental, charitable, and employment practices in their areas

Front 11

Investors

Back 11

those who have an ownership interest in the company or who consider obtaining an ownership share

Front 12

Creditors

Back 12

those who help finance the company by lending money

Front 13

Customers and Suppliers

Back 13

involved with the company day-to-day basis by buying and selling, respectively.

Front 14

External Auditors

Back 14

lend credibility to the financial statements and are responsible for evaluation whether or not the company's financial information is prepared according to established accounting rules

Front 15

Regulators

Back 15

they are responsible for the laws and guidelines that govern the company

Front 16

Management Oversight

Back 16

Policiesand procedures in place to lead the directorship of the company

Front 17

Features of Effective Leaders

Back 17

1. Recruiting

2. motivating

3. evaluation

4. problem solving

5. decision making

Front 18

Internal Controls and Compliance

Back 18

address the selection and development of the organization's internal stakeholders, and dictate the manner in which rights and responsibilities are assigned to them and ensure that the company is fulfilling its obligations with respect to adherence to corporate policies and procedures, accounting conventions, and regulatory requirements

Front 19

Financial Stewardship

Back 19

refers to the manner in which an agent handles the affairs and/finances of another

Front 20

Earnings Management

Back 20

manipulatingfinancial information

Front 21

Ethical Conduct

Back 21

Integrity,fairness, and accountability are the underlying concepts in each of the rolesof corporate governance

Front 22

Strategic Management

Back 22

Process of determining the strategic vision for the organization, developing the long-term objectives, creating the strategies that will achieve the vision and objectives, and implementing those strategies.

Front 23

IT Governance

Back 23

[A]structure of relationships and processes to direct and control the enterprise in order to achieve the enterprise’s goals by adding value while balancing riskversus return over IT and its processes.IT governance provides the structure that linksIT processes, IT resources and information to enterprise strategies and objectives

Front 24

Systems Development Life Cycle (SDLC) body

Back 24

a systematic process to manage the acquisition,design, implementation, and use of IT systems

Front 25

IT Governance Committee

Back 25

Group of senior manager selected to oversee the strategic management of IT

Front 26

Systems Planning

Back 26

the evaluation of long-term, strategic objectives and the prioritization of the IT systems in order to assist the organization in achieving its objectives.

Front 27

Systems Analysis

Back 27

study of the current system to determine the strength and weaknesses and the user needs of that system

Front 28

Systems Design

Back 28

the creation of the system that meets user needs and that incorporates the improvements identified by the system design phase

Front 29

Systems Implementation

Back 29

the set of steps undertake to program, test, and activate the IT systems as designed in the system design phase

Front 30

Operation and Maintenance

Back 30

the regular, ongoing functioning of the IT system and the processes to fix smaller problems. or bugs in the IT system.

Front 31

Feasibility Study

Back 31

Examining the match of IT systems to strategic objectives, the IT governance committee should evaluate the feasibility of each competing proposal

Front 32

Technical Feasibility

Back 32

Assessment of the realism of the possibility that technology exists to meet the need identified in the proposed change to the IT system

Front 33

Operational Feasibility

Back 33

Assessment of the realism of the possibility that the current employees will be able to operate the proposed IT system

Front 34

Economic Feasibility

Back 34

assessment of the costs and benefits associated with the proposed IT system

Front 35

Schedule Feasibility

Back 35

assessment of the realistic possibility that the proposed IT system can be implemented within a reasonable time

Front 36

Assurance Services

Back 36

Accountingservices that improve the quality of information

Front 37

Most common assurance service

Back 37

Audit

Front 38

Main Purpose of the Audit

Back 38

toassure users of financial information about the accuracy and completeness ofthe information

Front 39

Compliance Audits

Back 39

determine whether the company has complied with regulations and policies established by contractual agreements, governmental agencies, company management, or other high authority

Front 40

Operational Audits

Back 40

asses operating policies and procedures for efficiency and effectiveness

Front 41

Financial Statement Audits

Back 41

determine whether the company has prepared and presented its financial statements fairly, and in accordance with established financial accounting criteria

Front 42

IT Auditors

Back 42

specialize in information systems assurance, control, and security, and they may work for CPA firms, government agencies, or with internal audit group for any type of business organizaiton

Front 43

Information Risk

Back 43

thechance that information used by decision makers may be inaccurate

Front 44

Generally Accepted Auditing Standards (GAAS)

Back 44

broad guidelines for an auditor's professional responsibilities

Front 45

PublicCompany Accounting Oversight Board (PCAOB)

Back 45

organized in 2003 for the purpose of establishing auditing standards for public companies in the United States

Front 46

Auditing Standards Board (ASB)

Back 46

Prior to the PCAOB, standard-setting was their responisbility

Front 47

International Audit and Assurance Standards Board (IAASB)

Back 47

established by the International Federation of Accountants (IFAC) to set International Standards on Auditing that contribute to the uniform application of auditing practices on a worldwide basis

Front 48

Internal Auditing Standards Board (IASB)

Back 48

issue standards that pertain to attributes of internal audit activities, performance criteria, and implementation guidance

Front 49

Information Systems Audit and Control Association (ISACA)

Back 49

issues information systems auditing standards that provide guidelines for conduction the IT audit

Front 50

Purchase Order

Back 50

the form designating an order from the customer's perspective

Front 51

Sales Order

Back 51

the form designating an order from the seller's perspective

Front 52

Price List

Back 52

the entire set of preestablished and approved prices for each product

Front 53

Credit Limit

Back 53

the maximum dollar amount that a customer is allowed to carry as an accounts receivable balance

Front 54

Pick List

Back 54

documents the quantities and descriptions of items ordered

Front 55

Packing Slip

Back 55

prepared by warehouse personnel lists all items included in a shipment

Front 56

Bill of Lading

Back 56

agreement between the company and the carrier

Front 57

Shipping Log

Back 57

a chronological listing of shipments that allows management to track the status of sales and to answer customer inquiries regarding order status

Front 58

Sales Invoice (Bill)

Back 58

provided details of the sale and requests payment

Front 59

Sales Journal

Back 59

special journal that records sales transactions

Front 60

Receiving log

Back 60

lists the chronological sequence of all returned items, and a receiving reports records the quantity received

Front 61

Receiving report

Back 61

source document completed by personnel in receiving dock that documents the quantity and condition of items received

Front 62

Credit memorandum

Back 62

prepared to document the return and to adjust the amount of the customer's credit status

Front 63

6 controls and risks in Sales Processes

Back 63

1.Authorizationof transactions

2.Segregationof duties

3.Adequaterecords and documents

4.Securityof assets and documents 5.Independentchecks and reconciliation 6.Cost-benefitconsiderations

Front 64

Authorization of Transactions

Back 64

certain designated individuals within the company should be assigned the authority to develop sales return policies, authorize sales returns, and approve credit memos.

Front 65

E-commerce systems

Back 65

incorporate electronic processing of sales[related activities, and generally, e-commerce sales processes are transacted over the internet

Front 66

Electronic Data interchange

Back 66

systems communicate sales documents electronically with a standard business format

Front 67

Transaction Processing Systems

Back 67

Whena purchase occurs, the information resulting from that purchase must flow into, thepurchase recording systems, theaccounts payable and cash disbursement systems, and theinventory tracking systems

Front 68

Purchase Requisition

Back 68

prepared to document the need and request that the specific items and quantities be purchased

Front 69

Purchase Order

Back 69

document issued to a seller by a buyer that indicates the details for products or services that the seller will provide to the buyer

Front 70

Purchases Journal

Back 70

chronological listing of all purchase orders issued to vendors

Front 71

Blind Purchase Order

Back 71

includes information from the purchase order, but it omits data about the price and quantity of the items ordered

Front 72

Packing Slip

Back 72

Intended to show quantities and descriptions of items included in the shipment, but it does not generally includ eprices

Front 73

Receiving Report

Back 73

detailing the contents and condition of the receipt

Front 74

Receiving Log

Back 74

sequential listing of all receipts

Front 75

Cutoff

Back 75

the date for the end of the accounting period

Front 76

Accounts Payable subsidiary ledger

Back 76

includes the detail of amounts owed to each vendor