Ais Final

Front 1

integratebusiness processes and information fromall of an organization’s functional areas (marketing and sales, cash receipts,purchasing, cash disbursements, human resources, production and logistics, andbusiness and financial reporting)

Back 1

Enterprise System

Front 2

isthe application of electronic networks (including the Internet) to undertakebusiness processes between individuals and organizations.

Back 2

E-Business

Front 3

isa process effected by the board of directors, management and other personnel toprovide reasonable assurance that organizational objectives will be achievedin: efficiency and effectiveness of operations, reliability of reporting, andcompliance with laws and regulations

Back 3

Internal Control

Front 4

Section 404 and PCAOB Auditing StandardNo. 5

Back 4

Managementmust identify, document, and evaluate significant internal controls.

Auditorsmust report on the effectiveness of the organization’s system of internalcontrols.

Front 5

Section 409 of SOX

Back 5

Requiresdisclosure to the public on a “rapid and current” basis of material changes inan organization’s financial condition

Front 6

Aset of interdependent elements that together accomplish specificobjectives. A system must haveorganization, interrelationships, integration, and central objectives

Back 6

System

Front 7

Apart of a system. Within limits, anysubsystem can be further divided into its component parts or subsystems

Back 7

Subsystem

Front 8

isa man-made system that generally consists of an integrated set ofcomputer-based and manual components established to collect, store, and managedata and to provide output information to users

Back 8

Information System or Management Information System

Front 9

isa specialized subsystem of the IS that collects, processes and reportsinformation related to the financial aspects of business events

Back 9

Accounting Information System

Front 10

portionof the overall IS related to a particular business process

Back 10

Information Process

Front 11

man-madesystem consisting of the people, equipment, organization, policies, andprocedures whose objective is to accomplish the work of the organization

Back 11

Operations Process

Front 12

man-madesystem consisting of the people, authority, organization, policies, andprocedures whose objective is to plan and control the operations of theorganization

Back 12

Management Process

Front 13

Datapresented in a form that is useful in a decision-making activity. It has value to the decision maker because itreduces uncertainty and increasesknowledge about a particular area of concern

Back 13

Information

Front 14

Factsor figures in raw form. Represents themeasurements of observations of objects and events. To be useful to a decision maker, it must betransformed into information

Back 14

Data

Front 15

Meetsthe needs of the information consumer who uses it for a specific task

Back 15

Effectiveness

Front 16

Relatesto the process of obtaining and using information so it aligns to the“information as a service” view. Information is easily obtained and used

Back 16

Efficiency

Front 17

Free of error and complete

Back 17

Integrity

Front 18

Regardedas true and credible. More subjective and related to perception, not justfactual

Back 18

Reliability

Front 19

Qualitygoals under accessibility and security

Back 19

Availability

Front 20

Correspondsto the restricted access information quality goal

Back 20

Confidentiality

Front 21

Mustconform to specifications and regulations

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Compliance

Front 22

Enablesusers to perceive significance and permits application by the user in adecision-making situation

Back 22

Understandability

Front 23

Capableof making a difference in a decision-making situation by reducing uncertaintyor increasing knowledge

Back 23

Relevance

Front 24

Availableto a decision maker before it loses relevance

Back 24

Timeliness

Front 25

Improvesthe decision maker’s capacity topredict, confirm or correct earlier expectations

Back 25

Predictive or feedback value

Front 26

Highdegree of consensus about the information among independent measurers using thesame measurement methods

Back 26

Verifiability

Front 27

Objective

Back 27

Neutrality or freedom from bias

Front 28

Enablesusers to identify similarities and differences between two pieces ofinformation

Back 28

Comparability

Front 29

Correspondenceor agreement between the information and the actual events or objects itrepresents

Back 29

Accuracy

Front 30

Degreeto which information includes data about every relevant object or eventnecessary to make a decision and includes that information only once

Back 30

Completeness

Front 31

relateto specific business events, such as one shipment, or to individual inventoryitems. This information is narrow inscope, detailed, accurate and comes largely from within the organization

Back 31

Horizontal Information Flows

Front 32

servicea multi-level management function from operations and transaction processingthrough tactical, operations, and strategic management

Back 32

Vertical Information Flows

Front 33

Thosefor which all three decision phases (intelligence, design, and choice) arerelatively routine or repetitive. Somedecisions are so routine that a computer can be programmed to make them

Back 33

Structured Decisions

Front 34

Thoseforwhich none of the decision phases (intelligence, design, or choice) are routineor repetitive

Back 34

Unstructured Decisions

Front 35

Applicationof accounting principles, auditing principles, IS techniques, and systemsdevelopment methods to design an AIS

Back 35

Designer

Front 36

Accountsperform various functions within organizations that use the AIS. As a user, the accountant should be involvedin the AIS design process

Back 36

User

Front 37

Provideaudit and assurance services

Back 37

Auditor

Front 38

Integratebusiness processes and information from all of an organization’s functionalareas

Enablecoordinated operations of business functions and provide a central informationresource for the organization

Back 38

Enterprise Systems

Front 39

Softwarepackages that can be used for the core systems necessary to support enterprisesystems

Back 39

Enterprise Resource Planning (ERP)Systems

Front 40

How an enterprise might help purchase office equipment

Back 40

Providean electronic order form.

Applybusiness rules.

Routethe order for approvals.

Sendthe order to a buyer.

Connectto the vendor.

Competethe business process by making data available for management and analysis ofthe events:

Receive and route equipment to thepurchasing party.

Project funding requirements.

Analyze vendor performance.

Compare purchaser’s budget and actualexpenditures.

Front 41

Buildsand maintains customer-related database

Back 41

Customer relationship management (CRM)software

Front 42

Allowscustomers to complete tasks without the help of an organization’s employees

Back 42

Customer self-service (CSS) software

Front 43

Automatessales tasks such as order processing and tracking

Back 43

Sales force automation (SFA) software

Front 44

Enablesthe steps in the supply chain including demand planning, inventory acquisition,manufacturing, distributing and selling

Back 44

Supply Chain Management (SCM) software

Front 45

Managesproduct data from design through manufacturing and ending in the disposal of aproduct

Back 45

Product Lifecycle Management (PLM)software

Front 46

Managesthe interactions with organizations that supply the goods and services to anenterprise; includes procurement and contract management

Back 46

Supplier Relationship Management (SRM)software

Front 47

isprovided by the application developer

Back 47

Application programming interface (API)

Front 48

combinesprocesses, software, standards, and hardware to link two or more systemstogether, allowing them to act as one

Back 48

Enterprise application integration (EAI)

Front 49

achain of activities performed by an organization that transform inputs intooutputs valued by the customer

Back 49

Value Chain

Front 50

isa basic unit of data

Back 50

Character

Front 51

(singlecell in a table) is a collection of related characters that comprise anattribute

Back 51

Field

Front 52

(arow in a table) is a collection of related data fields (attributes) thatbelongs to a particular entity or event

Back 52

Record

Front 53

(orfile) is a collection of related records (sometimes called entity/eventinstances)

Back 53

Table

Front 54

Major ERP Modules

Back 54

Sales and Distribution

Materials Management

Financial Accounting

Controlling and Profit Analysis

Human Resources

Front 55

Order to Cash Process

Back 55

Presales activities

Sales order processing

Pick and Pack

Shipping

Billing

Payment

Front 56

Purchase to Pay Process

Back 56

Requirement determination

Purchase order processing

Goods receipt

Invoice Verification

Payment Processing

Front 57

Pros of enterprise systems

Back 57

Singledatabase

Integratedsystem

Processorientation (versus function orientation) Standardizationof business processes and data, easier to understand across the organization Fasterbusiness processes

Front 58

Pros of ERP Packages

Back 58

Onepackage across many functions

“Bestpractices”

Modularstructure (buy what you need)

Nodevelopment needed (unless modifications are required)

Configurable

Reducederrors (e.g., business rules, enter data once)

Front 59

Cons of Enterprise Systems

Back 59

Centralizedcontrol versus decentralized empowerment

Inabilityto support traditional business processes that may be best practices for thatorganization.

Front 60

Cons of ERP Packages

Back 60

Complexand inflexible

Bestpractices are shared by all who buy

Difficultto configure

Longimplementation

Bestof breed might be better (that single ERP package)

Can’tmeet all needs (developed for many user types)

Front 61

Applicationof electronic networks (including the Internet) to exchange information andlink business processes among organizations and individuals

Back 61

Electronic Business (e-Business)

Front 62

Relativelypermanent data, related to entities, and maintained over an extended period oftime. Two types of updates can be made

Back 62

Master Data

Front 63

includesdata processing functions related to economic events

Back 63

Information Processing

Front 64

includesactivities related to adding, deleting or replacing standingdata

Back 64

Data Maintenance

Front 65

relativelypermanent portions of master data. such as the credit limit on customer master data and the selling price.

Back 65

Standing Data

Front 66

Theaggregation of several business events over some period of time with thesubsequent processing of these data as a group by the information system

Back 66

Batch Processing

Front 67

Processingmode with delay between the various data processing steps. Heavily dependent onthe use of batch processing

Back 67

Periodic Mode

Front 68

Informationis recorded on a source document

Back 68

Business Event Occurs

Front 69

Abatch of source documents is entered in a computerized format

Back 69

Record business event data

Front 70

Thecomputer processes the entered information and updates the master data

Back 70

Update Master Data

Front 71

Afterthe update, periodic outputs (i.e. reports) are generated for management

Back 71

Generate Outputs

Front 72

Communication Networks

Back 72

Client/servertechnology

Localarea networks (LANs)

Widearea networks (WANs)

Internet

Webbrowsers

Intranet

Extranet

Front 73

Non-standardizedmessages between individuals linked via a communications network.

Weakform for e-business because of non-standardized format

Back 73

Electronic Mail (e-mail)

Front 74

Capture,storage, management, and control of document images

Back 74

Electronic Document Management (EDM)

Front 75

Computer-to-computerexchange of business data in structured formats that allow direct processing ofthose electronic documents by the receiving computer system

Back 75

Electronic Data Interchange (EDI)

Front 76

Computer-to-computerexchange of business event data in structured or semi-structured formats viaInternet communication that allows the initiation and consummation of businessevents

Back 76

Internet Commerce

Front 77

Serviceprovided for a fee to vendors to provide limited assurance to users of thevendor’s Web site that the site is in fact reliable and event data security isreasonable. Examples include CPA WebTrust

Back 77

Internet Assurance

Front 78

Theuse of the Internet to provide scalable services, such as software, andresources, hardware and data storage, to users. Examples include Gmail

Back 78

Cloud Computing

Front 79

Providean Internet base for companies to put products up for bid or for buyers to putproposed purchases up for bid.

Back 79

Internet Auction Market

Front 80

Bringstogether a variety of suppliers in a given industry with one or more buyers inthe same industry to provide Internet commerce through organized markets

Back 80

Internet Market Exchanges

Front 81

Agraphical representation of a system.

Depictsthe systems components; the data flows among the components; and the sources,destinations, and storage of data.¡

Usesa limited number of symbols.

Back 81

Data Flow Diagram

Front 82

depicts an entity or a process within which incoming data flows are transformed into outgoing data flows

Back 82

Bubble symbol ( Circle)

Front 83

represents a pathway for data

Back 83

data flow symbol (arrow)

Front 84

portrays a source or a destination of data outside the system

Back 84

External Entity Symbol (Square)

Front 85

represents a place where data is stored

Back 85

Data Store Symbol (Parallel Lines)

Front 86

Top-level,or least a detailed, diagram of a system depicting the system and all itsactivities as a single bubble and showing the data flows into and out of thesystem and into and out of the external entities

Back 86

Context Diagram

Front 87

Thoseentities (i.e., persons, places, or things) outside the system that send datato, or receive data from, the system

Back 87

External Entities

Front 88

Content of a Context Diagram

Back 88

Customer (square)

Payment (arrow)

Cash Receipts Process (Circle)

Deposit (Arrow)

Bank (Square)

Front 89

Graphical representation of a systemshowing the system’s internal and external entities, and the flows of data intoand out of these entities

Back 89

Physical Data Flow Diagram

Front 90

Anentity within the system that transforms data

Back 90

Internal Entity

Front 91

Graphical representation of a system showing the system’s processes (asbubbles), data stores, and the flows of data into and out of the processes anddata stores

Back 91

Logical data flow diagram (DFD)

Front 92

When are DFDs balanced?

Back 92

DFDsare balanced whenthe external data flows of the DFDs are equivalent

Front 93

A graphical representation of a businessprocess, including information processes as well as the related operationsprocesses

Back 93

Systems flowchart

Front 94

an action being performed by an internal or external entity

Back 94

Activity

Front 95

handlerequired actions for out-of-the-ordinary (exceptional) or erroneous events data

Back 95

Exception Routines or Error Routines

Front 96

adata flow assigned the label “Reject” that leaves a bubble but does not go toany other bubble or data store. Shownonly in lower-level diagrams

Back 96

Reject Stub

Front 97

cancause inconsistencies among the same data in different files. Increases storage and labor costs and datamay not be shareable

Back 97

Data Redundancy

Front 98

Aset of integrated programs designed to simplify the tasks of creating,accessing, and managing a centralized database

Back 98

Database Management Systems

Front 99

Datais decoupled from the system applications to make it independent of theapplication or other users

Back 99

Data Independence

Front 100

Systemsthat use this decoupled approach are referred to as having what?

Back 100

Three-tier Architecture

Front 101

Pros of the Centralized Database Approach

Back 101

Eliminatingdata redundancy

Easeof maintenance

Reducedlabor and storage costs

Dataintegrity

Dataindependence

Privacy

Front 102

Cons of the Centralized Database Approach

Back 102

Expensiveto implement and maintain.

Ifthe DBMS fails, all the organization’s information processing halts.

Increasedpotential for damage should unauthorized access to the database occur.

Databaserecovery and contingency planning aremore important than in the applications approach.

Front 103

Recordsthat are included in a record one level above them (a parent record)

Back 103

Child Record

Front 104

Includethe lower-level child records

Back 104

Parent Records

Front 105

includea relational DBMS framework with the capability to store complex data types

Back 105

Object-relational databases

Front 106

A place to store data

Back 106

Table

Front 107

Toolsthat allow users to access the data stored in various tables and to transformdata into information

Back 107

Queries

Front 108

Onscreenpresentations that allow users to view data in tables or collected by queriesfrom one or more tables and input new data

Back 108

Forms

Front 109

Printed lists and summaries of data stored intables or collected by queries from one or more tables

Back 109

Reports

Front 110

The unique identifier for each row of a table (or record within a file) that serves as the address for that row

Back 110

Primary Key

Front 111

Theprocess of grouping or categorizing data according to common attributes

Back 111

Classifying

Front 112

Thecreation of substitute values, or codes, to represent classification categorieslong labels

Back 112

Coding

Front 113

assignsnumbers to objects in chronological sequence. Provides limited flexibility andtells nothing about the object’s attributes. Limitations with adding anddeleting exist

Back 113

Sequential (serial) coding

Front 114

dedicatesgroups of numbers to particular object characteristics. Numbers within each block are generallyassigned sequentially. This leads tosome of the same adding and deleting limitations as sequential coding

Back 114

Block Coding

Front 115

assignsmeanings to specific digits

Back 115

Significant Digit Coding

Front 116

ordersitems in descending order where each successive rank order is a subset of therank above it. Specific meaning isattached to particular positions

Back 116

Hierarchical Coding

Front 117

includesletters as some or all of the code which is done to help humans remember them

Back 117

Mnemonic Coding

Front 118

acode that includes an extra digit that can be used to check the accuracy of thecode

Back 118

Check Digit

Front 119

what does anomalies mean?

Back 119

errors

Front 120

Containsrepeating attributes (fields) within each row (or record)

Back 120

Unnormalized Table

Front 121

If a table doesn’t contain repeating groups then

Back 121

It is in First normal form

Front 122

Problemsarise because an attribute is dependant ona portion of the primary key

Back 122

partial dependencies

Front 123

A table that is in 1NF and has no partial dependencies is said to be in

Back 123

Second Normal Form

Front 124

Anattribute that is not part of the primary key.

Back 124

Non-key Attributes

Front 125

A table that is in 2NF and has no transitive dependencies is said to be in

Back 125

Third Normal Form

Front 126

existswhen a non-key attribute is functionally dependent on another non-keyattribute

Back 126

Transitive Dependency

Front 127

Depictsuser requirements for data stored in a database

Back 127

Data Model

Front 128

Designeridentifies the important things (entities)about which information will be stored and how the things are related to eachother (relationships)

Back 128

Entity-relationship modeling

Front 129

Adiagram of the relational model

Back 129

Entity-relationship model

Front 130

reflectsthe system’s key entities and the relationships among those entities

Back 130

Entity Relationship Diagram (E-R Diagram)

Front 131

Thedegree to which each entity participates in the relationship. Can have a valueof “one” (“1) or “many” (“N” or “M”)

Back 131

Cardinality

Front 132

Measureof the highest level of participation that one entity can have in anotherentity

Back 132

Maximum Cardinality

Front 133

Informationtools that can help decision makers.

Back 133

Decision Aids

Front 134

Informationsystems that assist managers with unstructured decisions by retrieving andanalyzing data and generating information

Back 134

Decision Support Systems

Front 135

Can imitate human decision making

Back 135

Artificial Intelligence

Front 136

Combineinformation from the organization and the environment, organize and analyze theinformation, and present the information to the manager in a form that assistsin decision making

Back 136

Executive information systems (EIS) (alsocalled executive support systems

Front 137

Computer-basedsystems that support collaborative intellectual work such as: ideageneration, elaboration, analysis,synthesis, information sharing, and decision making

Back 137

Group support systems (GSS),also known as Group Decision Support Systems (GDSS)

Front 138

amethod for freely and creatively generating as many ideas as possible withoutundue regard for their practicality or realism

Back 138

Brainstorming

Front 139

Decisionsupport systems for complex decisions, where consistency is desirable and thedecision maker wants to minimize time and maximize quality. Emulates theproblem solving techniques of human experts

Back 139

Expert Systems

Front 140

Computerhardware and software systems that mimic the human brain’s ability to recognizepatterns or predict outcomes using less-than complete information

Back 140

Neutral Networks

Front 141

Softwareprogram that may be integrated into DSS or other software tools (such as wordprocessing, spreadsheet, or database packages)

Back 141

Intelligence Agent

Front 142

Useof information systems facilities to focus on the collection, organization,integration, and long-term storage of entity-wide data

Back 142

Data Warehousing

Front 143

Exploration,aggregation, and analysis of data in data warehouses using analytical tools andexploratory techniques

Back 143

Data Mining

Front 144

Theprocess of capturing, storing, retrieving, and distributing the knowledge ofthe individuals in an organization for use by others in the organization toimprove the quality and efficiency of decision making across the firm

Back 144

Knowledge Management

Front 145

Refersto information that has been formatted and distributed in accordance with anorganization’s routines, processes, practices and norms

Back 145

Knowledge

Front 146

Theprocess by which organizations select objectives, establish processes toachieve objectives, and monitor performance

Back 146

Organizational Governance

Front 147

Aprocess, effected by an entity’s board of directors, management, and otherpersonnel, applied in strategy settings and across the enterprise, designed toidentify potential events that may affect the entity, and manage risk to bewithin its risk appetite, to provide reasonable assurance regarding theachievement of entity objectives

Back 147

Enterprise Risk Management (ERM)

Front 148

afunction of initial expected gross risk, reduced risk exposure due to controlsand the cost of controls

Back 148

Residual Expected Risk

Front 149

Sarbanes-Oxley Act of 2002

Back 149

Createdpublic company accounting oversight board (PCAOB).

Strengthenedauditor independence rules. Increasedaccountability of company officers and directors.

Mandatedupper management to take responsibility for the company’s internal controlstructure.

Enhancedthe quality of financial reporting. Increasedwhite collar crime penalties.

Front 150

5 interrelated components of Internal Control

Back 150

Control Environment

Risk Assessment

Control Activities

Information and Communication

Monitoring

Front 151

isa process—effected by an entity’s board of directors, management and otherpersonnel—designed to provide reasonable assurance regarding the achievement ofobjectives

Back 151

Internal Control

Front 152

aseries of actions or operations leading to a particular and usually desirableresult

Back 152

Process

Front 153

Adeliberate act or untruth intended to obtain unfair or unlawful gain

Back 153

Fraud

Front 154

includescrime in which the computer is the target of the crime or the means used tocommit the crime

Back 154

Computer Crime

Front 155

is software designed specifically to damage or disrupt a computer system

Back 155

Malware

Front 156

isa program code that can attach itself to other programs thereby “infecting”those programs and macros

Back 156

Computer Virus

Front 157

Instructionsinserted in programs to steal very small amounts of money

Back 157

Salami slicing

Front 158

Specialcode that allows a programmer to bypass its security features and can be usedto attack the program

Back 158

Back door

Front 159

Moduleof unauthorized code that performs a damaging, unauthorized act. Often used in phishing e-mails

Back 159

Trojan Horse

Front 160

Codesecretly inserted in a program that is designed to execute or explode at aspecific date or event

Back 160

Logic Bomb

Front 161

Computervirus that replicates itself on disks, in memory and across networks

Back 161

Worm

Front 162

Programthat secretly takes over another Internet-attached computer and uses that computer to launch untraceableattacks

Back 162

Zombie

Front 163

reflectsthe organization’s (primarily the board of directors’ and management’s) generalawareness of and commitment to the importance of control throughout theorganization

Back 163

Control Environment

Front 164

Atool designed to assist in evaluating the potential effectiveness of controlsin a business process by matching control goals with relevant control plans

Back 164

Control Matrix

Front 165

Businessprocess objectives that an internal control system is designed to achieve

Back 165

Control Goals

Front 166

Reflectinformation-processing policies and procedures that assist in accomplishingcontrol goals

Back 166

Control Plans

Front 167

relateto a multitude of goals and processes, They are broad in scope and applyequally to all business processes

Back 167

Pervasive control plans

Front 168

areappliedto all IT service activities

Back 168

General Controls aka IT General Controls

Front 169

areapplied to a particular business process, such as billing or cash receipts

Back 169

Business Process Control Plans

Front 170

areautomated business process controls contained within IT application systems(i.e., computer programs)

Back 170

Application Controls

Front 171

stops problems from occurring

Back 171

preventive control plans

Front 172

discover that problems have occurred

Back 172

Detective Control Plans

Front 173

rectify problems that have occurred

Back 173

Corrective Control Plans

Front 174

separates the four basis functions of event processing

Back 174

Segregation of Duties

Front 175

The four basic functions of event processing

Back 175

Authorizing Events

Executing Events

Recording Events

Safeguarding Resources

Front 176

aplan or process put in place to guide actions and achieve goals

Back 176

Policy

Front 177

Jobcandidates should be carefully screened, selected and hired

Back 177

Selection and Hiring control plans

Front 178

Companiesshould provide create and challenging work opportunities as well as channelsfor advancement whenever possible

Back 178

Retention control plans

Front 179

Trainingmust occur regularly and be a top priority. Performance reviews should assess strengths and weaknesses and identifyopportunities for promotion, training and personal growth.

Back 179

personnel development control plans

Front 180

Definesprocedures when an employee leaves an organization

Back 180

personnel termination control plans

Front 181

this class...

Back 181

Sucks