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279 Cards in this Set

  • Front
  • Back
AIS

collection of resources, such as people and equipment, designed to transform financial and other data into information
mandatory AIS

payroll, accounts payable, etc.

discretionary AIS

budgetary systems, specific management reports
computer-based information systems

collection of hardware and software designed to transform data to useful information
[electronic] data processing (EDP)


use of IT to perform an organization's transaction-oriented data processing
management information systems (MIS)

use of IT to provide decision-oriented information to managers

decision support systems (DSS)

data are processed into a decision making format for the end user
expert systems (ES)

knowledge-based information systems that uses its knowledge about a specific application area to act as an expert consultant for end users

executive information systems (EIS)

tailored to the strategic needs of top-management

AIS

accounting data --> information including IT, transaction processing cycles and developing
automation

performing work that would be impossible for humans alone
information organization

automated recording and direct access to storage devices

communication

automakers and suppliers work together

applications architecture

process of ensuring the suite of organization's applications work together as a composite application according to the goals and objectives of the organization

customer relations management (CRM)

manages all contact with customers

supply chain management (SCM)

planning and management of all activities involved in sourcing, procurement, conversion and logistics management
extended enterprise

group of loosely connected companies that work together to maximize the value of their economic output

MRP

manage inventories and scheduling production

MRP II

added integration from MRP; before computer integrated manufacturing and flexible manufacturing systems

enterprise resource planning

solution to too-loosely connected functional systems

ERP II

adds collaborative commerce

collaborative commerce


involves groups of organizations working together toward common goals

enterprise application suite (EAS)

group of individual packages that work closely with each other and run in web browsers

business processes

interrelated set of tasks that involve data, organizational unites, and a logical time sequence

value chain

activities adding value to a product

primary business processes

directly add value: inbound logistics, production, outbound logistics, marketing and sales, and service

supporting business processes

activities that indirectly add value and support: organization infrastructure, HR, technology development, and procurement
operations process model

operational, supporting and governance groupings

operational group

value and SC activities

supporting group

finance, accounting, technology, and HR

governance

corporate, SM, and IT

transaction cycle model
revenue cycle, expenditure cycle, and production cycle

revenue cycle

events related to the distributer of goods and services to other entities and the collection of related payments

expenditure cycle

events related to the acquisition of goods and services from other entities and the settlement of related obligations

production cycle

events related to the transformations of resources into goods and services

applications system

processes logically related transactions

finance cycle

collection and disbursement of cash
financial reporting cycle

obtains accounting and operating data from the other cycles and processes these data from the other cycles to prepare financial statements

internal control process

actions taken within an organization to regulate and direct the activities of an organization
controller

handles sub-functions
budgeting

preparation of operating budgets, capital expenditure budgets and related forecasts and analyses

tax planning

admin. of tax reporting and analysis of transaction with significant tax consequences
accounting manager

supervises routine operating functions

treasurer


finances; obtaining funds; liquid assets

cashier

cash collection
CIO

head of IS function

steering committee

the means by which managers of other areas can influence the policies, budget, and planning of IS

analysis function

identifying problems and projects for computer processing and designing systems to satisfy these problems' requirements

programming function

design, coding, testing and debugging of CPU programs necessary to implement the system designed by the analysis function

technical support function

allow specialization in areas such as operating systems and software, data management and database design, and communications technology
user support function

services end users, much as the technical support function services personnel of the IS department

information center

support facility for the end users in an organization; equipment and software and consulting support; helps end users evaluate PC hardware and software

project organization

analysts and programmers are assigned to specific application projects and work together to compute a project under a project leader; focus for a single group
end user

organizational function other than IS
end user computing (EUC)

hands on use of computers by end users [information retrieval from the database using query language feature of database management system (DBMS)]

cloud computing
use of cloud based data processing services and data storage
total quality performance (TQP/TQM)

philosophy that one should do the right the first time
radio frequency identification (RFID)

tags that are placed in/on objects for which tracking is desired
QR Code

2D barcode used to identify and track parts in manufacturing and commercial applications

lean manufacturing

general class of production improvement principles that are based on the Toyota production system

JIT

demand "pull" system
Electronic Data Interchange (EDI)

direct computer-to-computer exchange of business documents via a communication network

ANSI x.12

standard value-added network

AS2

facilitates sending secure EDI and other messages via the Internet
extensible business reporting language (XBRL)

facilitates the exchange of financial statements over the internet
electronic funds transfer (EFT)

electronic payment systems in which processing and communication are primarily or totally electronic

systems approach

general approach is a general procedure for the administration of a systems project

blueprinting

use of generic or industry stock blueprints rather than designing its own system

user oriented philosophy

set of attitudes and an approach to systems development that consciously considers the organizational context

Green IT

designing for sustainability

systems techniques

tools used in analysis, design, and documentation of system and subsystem relationships
interim audit

objective: establishing the degree to which the organization's internal control structure can be relied on

financial statement audit

substantive testing: direct verification of FS figures, placing reliance on internal controls

flowchart

symbolic diagram that shows the data flow and sequence of operations in a system

input/output symbol

making data available for processing/ recording processed information

flowline symbol

used to link other symbols
specialized input/output symbols

I/O function and denotes the medium on which the information is recorded or the manner of handling the information
manual input

information inputted manually at the time of processing
display

information displayed for human use at the time of processing by video devices, console printers, plotters, etc
communication link

information transmitted by a telecommunications link

offline storage

stores information offline regardless of the medium used

specialized process symbols
may represent the processing function and identify the specific type of operation to be performed on the information

decision symbol

decision/ switching type of operation that determines which of a number of alternative paths is to be followed
predefined process

named procedure consisting of 1 or more operations/ program steps that aren't specified within flowcharts

preparation

modification of an instruction or group of instructions that change the program itself

manual operation
any offline process geared to the speed of a human being without using a mechanical aid

auxiliary operation

offline operation performed on equipment not under direct control of the central processing unit
extract; sort; collate

used to represent the associated specific type of processing function
additional symbols

may be used to clarify a flowchart/ make the flowchart of a complete process more convenient

connector
exit to or an entry from another part of the flowchart

terminal

start, stop, halt, or interrupt

parallel mode

beginning or end of two or more simultaneous operations

off page connector

used to represent an exit to or entry from another page of the flowchart
transmittal tape

used to represent a manually prepared batch control total

IPO chart

provides little detail concerning the processing function but is a useful technique for analyzing overall information requirements

HIPO Chart

2 segments: the hierarchy chart that factors the processing task into various models/ subtasks and an IPO to describe IPO requirements of each model

systems flowchart

identifies the overall or broad flow of operations in a system (analysis phase)

program [block] flowchart

primarily used by systems development personnel; more detailed in individual processing function than a systems flowchart
logical data/ data flow diagrams

used primarily by systems development personnel in systems analysis

systems analyst

communication link for user and programmer
terminator

sources and destinations of data

process

task/function

data store

repository of data

data flow

communication channel
analytic flowchart

similar to a systems flowchart in level of detail and technique

document flowchart

similar in format to an analytic flowchart but contains les detail about the processing functions of each entity shown on the chart

forms distribution chart

illustrates the distribution of multiple copy forms within an organization

sandwich rule

every process symbol should be "sandwiched" between an input and an output

UML (Unified Modeling Language)

technology that assists in the specification, visualization, and documentation of models developed to structure and design software systems

structure diagrams

static structure of the system

behavior diagrams

what a system does from and external observer POV

activity diagrams

flow of activities in a single process

swimlanes

group activities of a single entity into one column
business process diagrams

graphical representation of a business process

flow objects

main graphical elements (events, activities, and gateways)

connecting objects

sequence flow, message flow, associations, and data associations

swimlanes

pools and lanes

artifacts

provide additional information but does not affect the basic sequence/message

branching table

depicts a decision function

decision table

decision making process
eBusiness
use of information technologies in any aspect of the business/ organization

eCommerce

part of eBusiness that directly involves the exchange of products/ services among organizations and individuals
Web Commerce

using information technologies in the exchange of products or services among individuals and organizations over the WWW and Internet

Internet

global system of interconnected computer networks

IP address
needed by every computer
domain name

an alias name that can be used in place of an IP address

server

robot type program that constantly runs and exchanges information with remote users

clients

programs that access and exchange information with servers

mail servers

electronic mailboxes that hold mail until the user's client program requests it

file servers

allow authorized clients to retrieve files from libraries of files

file transfer protocol (FTP)
a type of file server

web servers
allow a user (client) to access documents and run the www, which consists of all documents, files, and software on the Internet that are available to web servers

commerce servers

specialized web servers with various commerce related features
data base

organized collection of data that is structured to be useful to those who use it
three tiered application architecture

presentation, logic, data, web browser
presentation

receives input and displays output

logic

processes commands, evaluates logical decisions, and makes calculations

data

stores all data relecant to the application

web browser

application server and database

enterprise architecture
describes the joint structure and behavior of the enterprise and its information system
the business architecture

defines HR, processes and infrastructure that a business needs to accomplish a business strategy

the data architecture

defines the needed data, how it is stored, how it is to be processed, how it is to be utilized and how it integrates with the other main architectural domains
data model

determines how the database is structured

structured query language

technology used to define, access, and manipulate data in a rational database

relational data model

structures data in 2D tables that resemble spreadsheets with rows and columns

conceptual

sketches tables that are needed and their relationship with one another (defines entities)
the corporate information factory

provides a logical architecture for the EA based on data being acquired, transformed to support business management and intelligence, and then delivered to management
data acquisition

data acquired from other operations

data management

integrated into databases and warehouses

operational databases

store relatively current transaction data for quick access by management in spurt of tactical decision-making; live and updated

data warehouses
store enormous volumes of current and historical data for research and analysis

data delivery

various data marts- contain subsets of the data contained in the operational database and a data warehouse

data mining warehouse

may contain copies of subject of the data warehouse

online analytical processing (OLAP)

complex analysis works with tables with more than 2 dimensions
transactional interface

access and manipulation of data in the operational database

decision support interface

sophisticated queries, complex analysis, and reserach

the applications architecture

defines the applications needed to run the business and how the applications communicate with each other through intranets and EDL

middleware

software specially designed to work in between 2 applications

ERP

single program and may have little need to communicate with other programs in the organization

EAS

have built in SOAs that manage inter-application communications
service oriented architecture


applications architecture design framework that facilitates the development of application suites
application suites

applications that share information with each other using some common communications framework
SOA service

independent software units of functionality

orchestration

process of linking and sequencing services in order to make them work together
simple object access protocol (SOAP)

communication between services

applications programming interface (API)

a set of commands that a given piece of software makes available so that its functions and data can be accessed by other pieces of software

database driver

works like a printer driver and tells which one to use

database connector

connect apps to databases

enterprise service bus (ESB)
a middle ware that serves as a central switchboard for communications between all enterprise services and applications
Zachman Framework

based on defining models applicable to a given organization

business process frameworks
focus on transforming the business
business process reference model

set of best practices for a given business process or group of processes

Porter model

original 9 activity value chain

value chain reference model

depicts the value chain at 4 levels of abstraction: strategical, tactical, operational, and activities/actions

supply chain operation reference (SCOR)

process reference model based on 3 pillars (process modeling, performance measures, and best practice) and 5 management processes (plan, source, make, deliver, and return)

osterwalder reference model (ORM)

reference model for business models in general

electronic bill payment system

payer sends instructions to bank with details of who is to be paid, when, amount, etc. and then pays the bank

credit/ debit card system

transmit to a secure server- communications link between the client and server is protected byh encryption

payment intermediary

PayPal is a...

digital cash

created when a bank attaches its digital signature to a note promising to pay the bearer some amount of money
digital signature

encrypted, digested version of a document that can be used to verify the document's authorship and authenticity, public key to decrypt

electronic wallet

CPU program that keeps track of the various items of information associated with electronic money

smart card

handheld electronic card that is used for payments

memory cards

contain microchips that are only capable of storing information; may contain hardware that contains a pin number
shared key cards
use encryption for all communication

signature transporting cards

allow user to spend digital cash and digitally sign

signature creating cards

capable of generating own digital signature
cookies
small pieces of information that the electronic merchant can place on a user's computer and can gain all of a person's browsing data

AICPA WebTrust

CPAs provide a seal of assurances after a special audit

enterprise risk management (ERM)
selecting the best opportunities and managing uncertainties; process applied in strategy setting and across the enterprise designed to identify potential events that may affect the entity and mange risk to provide reasonable assurance
exposure

consists of potential financial effect of an event multiplied with the probability of occurrence

risk

synonymous with probability of occurrence
fraud

intentional perversion of truth to induce another to part with something of value or surrender a legal righ

embezzlement

when assets are fraudulently appropriated to one's own use

white collar crime
grouping of illegal activities that are differentiated from other illegal activities in that they occur as part of the occupation of the offender

management fraud

diversion or misrepresentation of assets from either employees, or 3rd party outsiders, or both

fraudulent financial reporting

intentional or reckless conduct whether by purposeful act or by omission, that results in materially misleading financial statements

corporate crimes

white collar crime that benefits a company or organization, rather than the individuals who perpetrate the fraud
forensic accounting

prevention and detection of white collar crime

ACFE

established as a response to the increased concern for fraud in business and government

revenue cycle

distribution of goods and services to other entities and the collection of related payments

expenditure cycle

acquisition of goods and services from other entities and settlement of related obligations

production cycle

related to the transformation of resource into goods and services

finance cycle

related to the acquisition and management of capital funds including cash

internal control process

5 elements: control environment, risk assessment, control activities, information and communication, and monitoring
responsibility

management and board of directors establishing and maintain internal control processes

reasonable assurance

relative costs and benefits of controls; spend less on control than their predicted benefits
Federal foreign corrupt practices act of 1977 (FCPA)

specific legal requirement that concerns many organizations
internal accounting controls
provides assurances
public company accounting oversight board (PCAOB)

regulates the conduct of auditors but with important implications for management in all public companies
COSO reports

internal control as the 5 interrelated components that are used to describe internal control

COBIT

international standard for best practices in IT management

ISO 27002

international standard for best practices in information security

the US federal sentencing guidelines

sentencing individuals and organizations in relation to convictions of federal criminal statutes

control environment
collective effect of various factors on establishing, enhancing, or mitigating the effectiveness of specific policies and procedures

fidelity bond

contract with an insurance company that provides a financial guarantee of the honesty of the individual in the contract

segregation of duties

considerable extent on the precise and detailed planning of all procedures and the careful assignment of functions to carious people in the organization

supervision

direct monitoring of personnel performance by an employee who is in charge

job rotation

allows more than 1 employee to become familiar with certain duties and procedure so replacement in emergencies are less difficult

dual control

assignment of 2 individuals to perform the same work task in unison

risk management

identifying, analyzing, and managing risks that affect the company's objectives
risk management

identifying, analyzing, and managing risks that affect the company's objectives
physical controls

reducing the opportunities for theft and embezzlement

safeguarding

close supervision, physical protection devices and segregation of duties

authorization

limits the initiation of a transaction or performance of an activity to selected individuals

approval

acceptance of a transaction for processing after it is initiated
accounting system

methods and records established to identify, assemble, analyze, classify, record and report the organization's transaction and to maintain accountability for the related assets and liabilities
audit trail

exists if a financial total that appear in a general ledger account ant be supported by evidence concerning all the individual transactions and vice versa
management audit and operational audit

internal audit services to management that can extend beyond the financial activities of the organization

general controls

affect all transaction processing

application controls

specific to individual applications

input controls

designed to prevent/ detect errors in the input stage of data processing

processing controls

designed to provide assurance that processing has occurred according to intended specification and that no transactions have been lost or incorrectly inserted
output controls

designed to check that the input and processing resulted in valid outputs and that the outputs are distributed correctly
preventative controls

prevent errors and fraud before they happen

detective controls

uncover errors and fraud after they occur --> input and processing stages

corrective controls

correct errors

collusion

agreement/ conspiracy among two or more people to commit fruad

internal control questionnaire

common analytic technique

application control matrix

provides a structured form of analysis that is particularly relevant to internal control reviews of information systems

fraud examination/ fraud investigation


application of accounting and other specialized skills to the prevention, detection, investigation, correction, and reporting of fraud

Bedford Analysis

exploits an interesting pattern relating to the first digit of numbers appearing in a random data set

Type 1 error

fraud indicator gives a false signal

Type 2 error

fraud indicator fails to show fraud

fraud investigation process

process of systematically gathering and reviewing evidence for the purpose of documenting the presence/ absence of fraud

reverse proof

proof that the apparent fraud wasn't a result of something other than deliberate actions

evidence

anything that relates to the truth or falsity of an assertion made in an investigation, legal proceeding

predication

requires investigations be started or continued only when there is reasonable basis to do so

guilt

legal concept that only the courts have the power to determine

physical and document evidence

fingerprints, trace, and forged, incriminating documents

subpoena

order from a government agency or officer of a court that compels the recipient, under penalty, to produce physical evidence, documents, or testimony

search warrant

court order that authorizes law enforcement officials to search and seize evidence
observation evidence

results from monitoring suspects

interview evidence

interviews; ultimate being a court admissible signed confession

tracing

beginning with a source document and following the related transaction through the entire accounting cycle
vouching

tracing in reverse; beings with numbers in accounts and follows them back to source doucments

questioned documents

authenticity or authorship in question

observation

use of sense to assess the behavior of persons or other activities

surveillance

surreptitious observation

invigilation

observing a suspect's behavior before, during and after an announced investigation
introductory questions

seek to establish rapport, seek interviewee's cooperation, observe demeanor and non-sensitive, non-incriminating questions
calibration

observing suspects under introductory conditions

informational questions

seek investigation-relevant information

concluding questions
focus on thanking the interview for cooperation, confirm information was for an interview, week additional information if they want to provide and seek continued cooperation in the future

assessment questions

directed toward suspects and seek to assess honesty

expert consultants

provide expert opinions and analyses to attorneys under the umbrella of attorney-client privilege

discovery

opposing parties can require each other and relevant parties to produce out-of-court evidence

expert witness

fully subject to discover
Daubtest Test

US Federal Court Rule 702

Frey Test

theory/ method is generally accepted by the scientific community

earnings management

management acting within GAAP to produce ethical, unbiased reports

committee of sponsoring organizations

report identified various categories of fraud schemes relevant to financial statement fraud

sales skimming

employee pockets cash, but doesn't record the reception collection

moonlighting

after hour side-services

check washing

using chemicals to remove a check's payment details and then adding new details for the payee, date or amount of payment

check laundering

using a stolen customer check to make a payment on account

bid rigging

purchase from a friend/ relative even though it isn't in the company's best interest

kick back fraud

accept secret payments/ factors in exchange for favoring a particular vendor

imprest fund

keeping a predetermined amount of money in the petty cash fund