Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
30 Cards in this Set
- Front
- Back
|
AICPA Top Technology Initiatives
|
1. Information Security Mgmt
- Information security always #1 |
|
|
A system is...
|
Group of interacting parts of components that serve a common purpose
|
|
|
AIS creates...
|
Needed information for users
|
|
|
AIS Today
|
- Financial and non-financial data
- Enterprise-wide information system (ERP) - Business process focused |
|
|
Inputs to an AIS
|
Collection of data from internal/external sources
|
|
|
AIS Proceses
|
Sorting, organizing, and calculating
- Data repository, files, databases |
|
|
AIS Outputs
|
Distribution of information for internal/external decision makers
|
|
|
Are info systems always computerized?
|
No - double entry ledgers, ex.
|
|
|
Data
|
Raw facts
No organization or meaning Beginning of audit trail ex. Sales price, part number |
|
|
Information
|
Processed data
Meaningful and useful to users ex. Net income, budget variances |
|
|
AIS vs. ERP
|
AIS:
Internal and external users Financial information ERP: Internal users Financial information Nonfinancial information |
|
|
Problems with computerized systems
|
1. Information overload
2. Inability to identify input and other errors 3. Difficult to follow audit trail |
|
|
Whats new in AIS?
|
- Suspicious activity reporting
- Countering terrorism - Corporate scandals in accounting - Sarbanes-Oxley and Patriot Acts - Interactive Data (XBRL) |
|
|
Sarbanes-Oxley Act
|
- CEOs must certify accuracy and completeness of financial statements
- Public companies must hire independent, NEW auditors to review controls - Section 404, requires companies to implement and asses internal controls, auditors evaluate those assesments |
|
|
Financial accounting
|
- Relevant information
- EXTERNAL parties - Financial statements |
|
|
Financial Accounting Audit Trail
|
- Traces the accounting cycle
- Data flow from input to output |
|
|
Cost Accounting
|
- Measure and Control Costs
(aquisition, processing, distribution, and selling activities) - AIS Examples: activity based costing, corporate performance measurement and business intelligence |
|
|
Auditing Traditional Role
|
- Evaluate accuracy of financial statements
|
|
|
Auditing Present Role
|
- Evaluate compliance with HIPAA
- IT evaluations and audits - Management consulting |
|
|
Taxation
|
- Software (example of AIS), create and evaluate tax strategies, transmit completed forms
|
|
|
Professional usage
|
- Research challenging questions
- Access more up-to-date information - Database access |
|
|
Corporate Performance Measurement
|
- Responsibility accounting system (trace to a person or department)
- Immediate corrective action |
|
|
Balanced scorecard
|
- Financial performance
- Customer knowledge - Internal business processes - Learning and growth |
|
|
CISA
|
Certified information systems auditor
|
|
|
CISM
|
Certified information security manager
|
|
|
CFA
|
Certified fraud auditor
|
|
|
CIA
|
Certified internal auditor
|
|
|
IMA
|
Institute of management accountants
- Largest association of management accountants in the US - CFA - CMA - Strategic finance - Management accounting quarterly - Strategic tech notes |
|
|
AICPA
|
American institute of certified public accountants
- CPA - Since 1887 - Journal of accountantcy |
|
|
SB819
|
California CPAs must meet 150 unit college education requirement
|
