Becker Cpa - Bec - B-4

Front 1

5 Components of IT (explain each):
1.
2.
3.
4.
5.

_________ - Computer Systems that can accurately record and summarize business transactions

3 Primary Roles of BIS
1. ________: done by _________
2. ________: done by _________
3. ________: done by _________

Production data vs. test data

Back 1

1. Hardware - actual physical comp / peripherals
2. Software - programs that turn data into information
3. Data - raw facts (ie. a quantity - this is different from information=processed data that is meaningful)
4. People
5. Network - Shares data

Business Information Systems

1. Process Detailed Data; transaction processing systems
2. Assist in making Daily Decisions; management information systems/knowledge systems;
3. Assist in developing business strategy; executive information systems;

Production: Live, real
Test: staged, fake;
**DON'T MIX THE TWO

Front 2

Components of BIS

A. _____
B. _____
C. _____ - subset of this is a _____ (which also overlaps with ____)
D. _______
E. _______

AIS' create audit trails. Example?

INPUT:
_________ ---> _______
|
\/
_________ --> _______ --> ________ ---> ________ (Output)

Well designed AIS should allow transaction to be traced from input to output & be _____ from output to input

Back 2

A. TPS; transaction processing system;
B. DSS; Decision Support System;
C. MIS; Management Information System; AIS; Accounting Information system; TPS
D. KS; Knowledge System
E. Executive Information System;

Source documents (invoice, timecard) --> File original
|
\/
Journal --> Ledger --> Trial Balance --> Financial Statements

vouched;

Front 3

Components of BIS:

TPS: useful for _______daily transactions.

DSS (or ______): assists managers in making daily business decisions by providing objective analytical data

MIS: provide managers and end users with _______;

EIS: only used by top managers. Assists in _____, not daily decision making; focus on ______ for computer illiterate;

Back 3

processing;

expert systems;

reports;

strategic; easy of use

Front 4

Types of reports:
Periodic report, exception reports;
-_____ reports - can pull whenever.
-______ report - on the fly; does not exist yet; Many programs come with this functionality to submit a ______.
-______ reports; management believe that this is necessary, comes up every time you log in

Back 4

Demand; ad hoc; query; push;

Front 5

People in IT:

1. ________ - architect of overall computer hardware specs.
2. ________ (ie. _______) - write / maintain application programs. ALSO: ________ and ________. A large portion of budget goes to application maintenance.
3. ________ - maintain / troubleshoot the OS. May also forecast hardware capacity; SHOULD NOT BE GIVEN ACCESS TO ________ - only ____ (can modify security settings).
4. ________ - archaic title; running processing jobs; hanging tape, mainframe environment, etc.. ______ are not computer operators;
5. _______ - archaic - batch processing;
6. _______ - store & protect programs / tapes from damage
7. _______ - assignment of initial passwords / maintenance;
8. Systems administrators:
a. ________ - maintains database _____. Different, more technical than ______. *don't want DB admins with access to production data.
b. ______ - basically internet connection guy
c. ______ - maintains site.

Back 5

Systems Analyst

Computer Programmer; Software Developer; test application; write instructions;

System Programmer; Production data; test data;

Computer Operator; End Users;

Control Clerk

File Librarian;

Security Administrator

Database Administrator; software; data administrator - just maintains data within database (administrative);

Network Administrator;

Web Administrator;

Front 6

People (cont'd)

9. _______ - inputs data (arcahic)
10. _______ - fix hardware issues;
11. _______ - anyone else who inputs data into system / uses info processed by system;

IT department is a ____ function that does not authorize transactions;

Most important seg of duties: _________ vs. _______; if both given to one person, could rip off company;

Back 6

Data input clerk;

Hardware Tech;

End User;

support;

Systems analyst (hardware) vs. Computer Programmer (software);

Front 7

Hardware:

CPU: - inside CPU, main circuit board, motherboard. All _________ plugs into motherboard. Parts of CPU:
a. _____: Chip, 'the brain'
b. ______: 2 types of memory;
i. ____: high speed processing memory - expensive;
ii. ____: different; read-only (CDs, DVDs)

Secondary Storage Devices: ie _______, inexpensive & large; also CD's, key drives, etc.
_______ storage devices - data is accessed in order (tapes)
_______ storage devices - data accessed randomly (HDs)
___________(____) - used for servers that combine multiple inexpensive disks to exceed the performance & reliability of a single large HD

Back 7

CPU; internal hardware; processor; primary storage; RAM; ROM

hard drive

sequential; random

Redundant Array of Independent Disks (RAID)

Front 8

Hardware:

_______ - devices that transfer data to CPU, but don't process.
a. ________ - supply data; ie keyboard, mouse;
b. ________ - monitors, printers

Classes of processors (rank in terms of processing power):
a. ________
b. ________
c. ________
Processing power is described in ___________ (____) - also speed of I/O devices important.

Multiprocessing:
________ - one processor controls the processing
________ - each processor has own OS.
Multiprocessing results in a an efficiency loss, the more processors there are.

Back 8

Peripherals

a. Input devices
b. Output devices

a. Mainframes (specialized functions)
b. midrange / mini-computers
c. PCs

Millions of instructions per second (MIPS)

Symmetric multiprocessing;
Parallel processing;

Front 9

Software:

System Software:

A. OS - provides interface bw user and hardware. It defines which commands can be issued & how they are issued (Wind, Linux - open source, Unix)

B. ________ (____)
Data storage defs: a ____ is a 0 or 1. A ____ is 8 ____ (sometimes called _____); Obviously 1 KB = 1000 Bytes, etc.
A _____ - a group of byte in which a specific data element (ie name) is stored (vertical column)
A _____ - a group of fields for a particular entity (horizontal row)
A _____ - collection of _____.

A ______ - collection of data ____ / _____
A ____ is not a database. It is a program used to CREATE and USE databases. It also allows for maintenance (Access, Oracle, SQL)

Back 9

B. Database Management System (DBMS)

bit; byte; bits; characters;

field
record
file; records

database; files/records
DBMS

Front 10

Today most successful databases are based on ________ which data is stored in 2D tables that are related to each other via ____. ______ is the process for separating data into logical tables.
________ - includes comment, voice, video etc in DB.

Major uses for DBMS:
1. ________
2. ________
3. ________ (tuning) - DB must be _______ (working) & _______ (fast)
4. ________ - be use friendly / use macros

Types of DBs
1. ___________ (day to day, store customer info)
2. ___________ (analyze info, summarize)
3. __________ (putting all transaction info into, can be used for ______ - analyzing trends from transactions)
4. ________ (email, address book, only for workstation)

Back 10

relational technology; keys; normalization;

Object oriented DB

1. Development
2. Query
3. Maintenance; effective; efficient;
4. Application Development

1. Operational DB
2. Analytical DB
3. Data Warehouse; data mining;
4. End User DB

Front 11

Advantages of DBMS
1.
2.
3.
4.
5.
6.

Disadvantages:
1.
2.
3.
4.
5.

Application Software:
1. __________ - 1 for every computer
2. __________ - if not allowed access to SC, store backup copy with 3rd party in case co doesn't meet obligations
3. __________ - download from web (viruses maybe) - lets different people work on it.

Back 11

1. Reduction of Data Redundancy / Inconsistency
2. Potential for Data Sharing
3. Data Independence - programs dont store data
4. Data Standardization
5. Improved Data Security
6. Expanded Data Fields - DB can grow / change

1. Cost (hardware / software)
2. Trained personnel necessary (need DBAs)
3. Increased Chances of Breakdown
4. Possible Obscuring of Audit Trail
5. Specialized Backup procedure needed

1. Licensing the use of software
2. Escrowing the source Code
3. Groupware

Front 12

Networks:

a group of __________/_____

1. ____ - permit shared resources (data, software, etc) within a limited area
i. ____ - any device connected to the network
ii. _______ / ______ - a node (PC) used by end users
iii. ______ - node dedicated to sharing resources to rest of network. Not accessible by individual users, but through _______.
iv. ________ - circuit board installed on a node that allows connection to the network
v. ________ - physical path between nodes on a network. (ie. _____, ______, CAT5 cables)
vi. ________ - manages communication over a network. Can either be a _____ system (no servers, circular, NOT in business) or a _____ system (central machine server).
vii. _______/_____: allow remote access of network; allows network to comm. w others
viii. _______/_______: TCP/IP.. set of rules that allow computers to communicate

Back 12

interconnected computers / terminals;

1. LAN;
i. Node;
ii. Workstation / client
iii. Server; network software
iv. Network Interface Card (NIC)
v. Transmission Media; wires, wireless;
vi. Network Operating System (NOS); P2P; client/server;
vii. Communication Devices / Modems
viii. Communication / Network Protocols.

Front 13

Network (cont'd)

ix. ______ : translate 2 different sets of network protocols; _____: send packets of data to LANs or a WAN. _____: connects segments of a LAN that uses same protocols.
x: 4 typers of network ______
1. ____ network - connect all devices with common backbone
2. _____ network - circular, P2P, no servers, not in business.
3. _____ network - all machines connect to centralized ___ (telephone lines - example)
4. _____ network - combination of bus and star network. Each section has a hub, each hub is connected to the bus

______ architecture: application processing done by client, servers merely provide data;

_______ architecture: application processing is split between client and intermediate application processor.
*Many application packages now run on browsers to avoid update conflicts.

Back 13

Gateway; router; bridge;

topologies;
1. Bus network
2. Ring network
3. Star network; hub
4. Tree network

Two-tiered;
Three-tiered;

Front 14

____ network: allows national / international communications. Use public communication channels; Types:
1. _________ (___):
a. _____ owned
b. more _____
c. more _____
d. slow (____). Example of VAN?
2. _________ - what is the internet? It is NOT controlled by the gov't, it is provided by ISPs.
a. _____
b. less _____
c. less _____ ('virtual' private networks)
d. fast, _________(___)

______ - private website for company
______- permit some suppliers, customers, etc. to have some access to company's network. (port, doorway)

Back 14

WAN;
1. Value Added Network (VAN); privately; expensive; secure; batch; Credit Card cos.

2. Internet based networks; all the internet is a bunch of publicly available web servers that host their websites.
a. public
b. expense
c. secure
d. Online Real time (OLRT)

intranet
extranet.

Front 15

Transaction Files: ie computerized ______. These are used to _____ the ______. They are temporary and unless needed for audit, they are periodically purged.

Master files: ie computerized _____. Process for updating with transactions files is called _______. These are permanent files and there are many different iterations of master files bc they represent the company at a point in time. Therefore, older iterations are sometimes saved. A ____________ procedure is used occasionally (son for processing cycle, father in case processing probs, grandfather at BCP site)

Back 15

journals; update; master file

ledgers; file maintenance; grandfather-father-son

Front 16

Batch processing - inputs are sorted into groups (batches) and processed periodically. These systems can either use ______ or ________ access devices. (always a time delay). 2 steps: Create Transaction File, Update Master File. *** Important that a batch total is calculated then compared with computer generated total. Can total using dollar fields or _______ (item totaled not in dollars).

OLRT processing: can only use _______ storage devices; processing takes place immediately (no delay). Generally require the use of a network. A widely used OLRT: ____ systems

Back 16

random access; sequential;

hash total;

random access;

POS

Front 17

Centralized vs. Decentralized Processing. *More of a debate about the matter of degree of which.

Centralized: ______ and larger computing applications are examples.

Decentralized: each remote computer performs a portion of the processing via a LAN / WAN

Advantages of Centralized:
1.
2.

Disadvantages of Centralized:
1.
2.
3.
4.

Back 17

mainframes

1. Enhanced Data Security
2. Consistent Processing

1. Possible High Cost (not as much anymore)
2. Increased Need for Processing Power & Data Storage
3. Reduction in Local Accountability (let HQ deal with it)
4. Bottlenecks (high traffic times)
5. Larger Delay in Response Time

Front 18

Auditing issues in computerized environment:
1. _________ - paper trail much less often (need e-trail). If client processes data in electronic form, test continuously
2. _________ - ____ errors are virtually eliminated but _____ errors have the potential to be repeated.
3. _________ - automated transactions may not have these and be less documented.

Audit Negatives of computerized servers:
A.
B.
C.
D.
E.

Audit Positives for Computerized Servers:
A.
B.

Back 18

1. Disappearing audit trail
2. Uniform Transaction Processing; clerical; logic;
3. Authorizations

A. increased likelihood of unauthorized access due to remote access
B. Concentration of information
C. Decreased opportunities for observation
D. Errors/Fraud can occur in the design / maintenance
E. Computer Disruptions can occur (viruses etc..)

A. More opportunities for data analysis and review
B. Existence of raw data and management reports leads to more analytical procedures.

Front 19

Flowchart symbols:

1. Rectangle with squigly?
2. Rectangle
3. Rectangle - 3 sides, 1 side diagonal
4. Tape
5. Cylinder
6. Hexagon (curved 1 side)
7. Trapezoid
8. Diamond
9. Circle
10. Pentagon
11. Triangle (D, A, & N?)
12. Lighting Bolt
13. Parallelogram

Look at the Book for the difference in Batch vs. OLRT processing.

Back 19

1. Document or Report
2. Computer Process
3. Key Entry
4. Tape File
5. Disk File
6. Display
7. Manual Process
8. Decision Tree
9. On page connector
10. Off page connector
11. Off-line (paper) file; D=Date; A=Alpha; N=Numeric
12. Communication link
13. Data

Front 20

Risks to Systems. 4 main:
1. ________ - risk of choosing inappropriate technology
2. ________ - doing the rights things in the wrong way.
3. ________ - having resources lost, wasted or stolen
4. ________ - loss of data integrity

Definitions:
Risk?
Threat?

Control categories:
1. _______ - ie passwords for computer
2. _______ - ie password for application
3. _______ - ie locks on doors
4. _______

Back 20

1. Strategic Risk
2. Operational Risk
3. Financial Risk
4. Information Risk

possibility of harm or loss
danger to an asset linked with hostile intent

General Controls
Application controls
Physical controls
Seg. of duties

Front 21

Backdoor - means of bypassing normal security mechanisms.

Firewall - system of both ______ & _______ that authenticates users. As a gatekeeper, it isolates private networks from ________. They _____, but do not prevent. Types of firewalls:
-________ - physical 'box'; protects network as a whole
-_________ - prevent specific applications from being attacked. Not meant to replace NW firewalls, but to supplement. Examine data in packets, not just packet headers

Firewall methodologies:
A. ________ - simpliest type of configuation; can be circumvented by IP spoofing (forge actual IP address)
2. ________ - allow only data in network in response to requests from within network
3. ________ (____) - more secure, but slower.

Back 21

hardware & software; public networks; deter;

network firewall
application firewall

Packet filtering
Circuit Level Gateway
Application Level Gateway (proxies) -

Front 22

Threats in Computerized Environment:

1. Virus - a piece of a computer program that inserts itself inside another program in order to grow (needs ____, no independence)
2. _____ - like a virus (grows), but runs independently, doesn't attach to a program
3. ______ - a program that appears to have utility, but has hidden malicious functions. Usually does not _____ itself
4. _______ - a computer bombards another (or network) with a bunch of information to overload it.
5. _______ - phony emails to lure people to phony websites
6. _______ - unsolicited email

Back 22

host

worm

Trojan; replicate;

Denial-of-service attack;

Phishing;

Spam;

Front 23

Data Encryption:
1. ________ - obtain from 3rd party. Most encryptions are ___ bit.

Disaster recovery: Major players:
-_______
-_______
-_______
-_______

Steps in DR Plan:
1. ______
2. ______
3. ______
4. ______
5. ______

Some cos (banks, etc.) need instantaneous resumption, and can provide own facilities and ____ data - update instantaneously at 2 different places

_____ - all electrical hookups, but no equipment - takes a few days
_____ - has data nearby, equipment needed to begin processing.

Back 23

Digital Certificates
128 bit

organization;
external service providers;
application vendors;
senior management;

1. Assess the risks
2. ID mission critical applications / data
3. Develop a Plan
4. Determine responsibilities of personnel
5. Test the DR Plan

mirror

cold site; hot site;

Front 24

_______ - actually buying and selling items online
_______ - any use of IT to perform business processes electronically

One of the first types of e-business was ________(___): essentially computer-to-computer exchange of documents; Started with buyer-seller transactions, but expanded to inventory management / distribution; EDI HAS:
A. _______ / ______
B. _________ - international language / ______ fields from one company to another. Different standards depending on industry. ___ being developed to translate data in flexible formats;
C. Communications - usually a ____

EDI may permit limited access to each other's _______; by one submitting transaction, updates others DB. Suppliers can improve inventory management system this way.

Costs of EDI:
1. _____ - cannot conduct EDI without est. relationship
2. _____/_____- if dont have already
3. ______
4. ______/_____

Back 24

E-Commerce

E-Business

Electronic Data Interchange (EDI);

A. reduced costs, increased speed
B. standard data format; mapping; XML
C. VAN

DBs

1. Legal Costs
2. Harware Costs/ Translation Costs
3. VAN costs
4. Security / Re-training

Front 25

Audit trails of EDIs should include:
1. _______
2. _______

EDI vs. E-Commerce. EDI is (opposite of EC)
1. ______ - cost
2. ______ - security
3. ______(___) - speed
4. ______ - network

B2C, B2B, C2C (ebay)

Why B2B e-commerce important?
1. ____
2. ____ - TZs
3. ____ - can be directed to the areas of interest
4. ____ - documents are indecipherable if encrypted
5. ____ - no human errors

B2C is less complicated than B2B

Back 25

1. Activity logs for failed transactions
2. Network / other party acknowledgement

1. More expense
2. More secure
3. Slower (batch)
4. VAN

1. Speed
2. Timing
3. Personalization
4. Security
5. Reliability

Front 26

ERP - Enterprise Resource Planning - integrates and automates business processes & allows for data sharing across whole company; Different ______

ERP Functions:
A. store info in _______
B. Can provide vital _____ info to managers for decision (EIS / strategic planning)

Supply Chain Management:
1. What? Goods received should match those ordered
2. When? On date promised
3. Where? delivered correctly
4. How much? Cost of Goods - as low as possible

Back 26

Modules;

central repository
cross-functional

Front 27

CRM - ________ - provide sales force automation and customer services (ie record contacts, manage sales force, forecast sales, manage sales leads, etc.) Objectives - to improve CS, thus revenue / profitability. It appears to __________. ___ of customers generate ____ of sales & it is _____ more expensive to gain a new customer than to retain an old one. Two types of CRM:
-______ CRM - automates customer contacts
-______ CRM - uses info to drive biz decisions

EFT - gov't has involvement (_____ / ____ network); EFTs are typically provided by _______ - intermediary b/w gov't and company (3rd parties are heavily insured and bonded).

Back 27

Customer Relationship Management

market to each customer individually; 20%; 80%; 5-10 times;

Operational; Analytical

Fedwire; ACH; 3rd party vendor

Front 28

_________ - provide access to application programs on a ____ basis to provide smaller companies some benefit to pay only for what is used. The ASPs own/host the software. Benefits: _______. Disadvantages: _______ & _______

Similar to _________ - which perform processing outside the organization.

Computer Assisted Audit Techniques:
A. ________ - auditor electronically marks specific transactions and follows them through the client's system
2. Embedded _______ - collect data for transaction data for auditor
3. _______ - client's system is used to test off-line. Contains invalid transactions to see what system does.
4. _________ - test data / live data commingled. Client's system is used to test online. Processing data to dummy accounts (employees don't know)
5. __________ - re-process live data using copy of client's software.

Back 28

Application Service Providers (ASPs); rental; lower cost; privacy concerns & poor support

present day service bureaus;

Transaction tagging;

Audit Module;

Test Deck (Data)

Integrated Test Facility

Parallel Simulation