ACCT 360 Exam 2 Flashcards
What is Choreography?
The message flows between pools
What is the symbol in a BPMN for intermediate errors in the process
Lightning bolt in a circle
What are business rules?
Guidelines in place to help ensure that information systems operate in a consistent and effective manner to achieve organizational objectives
What is the utility of a business rule
They are constraints on the process used to implement control activities
How to set up business rules
- Define objectives of a business event
- Use BPMN to identify important business events
- Define constraints on each event
What is the primary purpose of a UML model of the Sales and Collections process
To create a blueprint for the development of a relational database to support the collection, aggregation, and communication of process information
What do we use to develop UML Class diagrams
The REA framework (resources, events, and agents)
What is the purpose of type images
Type images apply guidelines, constraints, and descriptive information to their resources, events, and agents to help manage the business process
Rule of thumb
POST TOWARD THE * and AWAY FROM THE 1
The primary key of Customer should be a foreign key in the Sale Table!
What does the collaberation model do
The collaboration model focuses on the message flows between the pools.
Swimlanes can be used to
show functional responsibilities
Foreign Keys implement
1:Many Relationships
What is a data warehouse
A data warehouse is a collection of information gathered from an assortment of external and operational (i.e., internal) databases to facilitate reporting for decision making and business analysis.
What is the purpose of a data warehouse
The main repository of the firm’s historical data
Data warehouses work separately from operational warehouses what do they work with
Customer relationship management (CRM) and supply chain management (SCM) systems.
What are the types of internal databases
General Ledger
Inventory
Sales
Purchases
What are the types of External Databases
Industry Information
Competitor Information
General Economy Information
PotentialCustomerDemographics
Data Warehouses
ALL of the Internal and External Types
Data flows from the Data Warehouse to the
Data Marts
What is business intelligence
Business Intelligence is a computer-based technique for accumulating and analyzing data from databases and data warehouses to support managerial decision making.
How can a firm gather business intelligence
By using a web crawler
What are the three steps of process of Business Intelligence
Gather information (internal/external)
Analyze the data to discern patterns
Make decisions, informed decisions
What is Data Mining
Data mining is a process using sophisticated statistical techniques to extract and analyze data from large databases to discern patterns and trends that were not previously known.
What are spurious correlations
Correlations that do not really exist
What is a digital dashboard
A digital dashboard is designed to track the firm process or performance indicators or metrics to monitor critical performance
What is XBRL
eXtensible Business Reporting Language
XBRL taxonomy
defines and describes each key data element (e.g., total assets, accounts, payable, net income, etc.).
XBRL instance documents
contain the actual dollar amounts or the details of each of the elements within the firm’s XBRL database.
XBRL style sheets
take the instance documents and add presentation elements to make them readable by humans.
What assurances do we need on XBRL
The most current, standardized XBRL taxonomy is used,
The underlying financial and nonfinancial data that is used in XBRL tagging is reliable,
The XBRL tagging is accurate and complete, and,
The reports generated using XBRL are complete and received on a timely basis.
What is XBRL GL
XBRL Global Ledger Taxonomy, XBRL GL allows the representation of anything that is found in a chart of accounts, journal entries or historical transactions, financial and non-financial
What are advantages of XBRL GL
XBRL Global Ledger is reporting independent.
XBRL Global Ledger is system independent.
XBRL Global Ledger permits consolidation.
XBRL Global Ledger provides flexibility, allowing extensible, flexible, multi-national solutions that can exchange the data required by internal finance, accountants, and creditors.
Summary of XBRL
XBRL serves as a means to electronically communicate business information to facilitate business reporting of financial and nonfinancial data to users.
XBRL greatly enhances the speed and accuracy of business reporting.
Data warehouses
Data warehouses serve as a repository of information that is separate from the operating databases of the firm to support decision making across a number of functions in the firm.
Business intelligence
uses computer-based techniques to accumulate and analyze data that might be helpful to the firm’s strategic initiatives.
Digital dashboards
tracks critical firm performance in a way that is easily accessible to executives.
XBRL
serves as a means to electronically communicate business information and facilitate business reporting of financial and nonfinancial data to users.
Which of the following best describes the purpose of a BPMN collapsed sub-process?
Contain a series of activities that are hidden from view.
Review the following partial UML class diagram. Which answer provides the best interpretation of the multiplicities for the association between the Inventory class and the Sales class?
Each Sale may include many inventory items
In Access, system designers sometimes set range limits for values of attributes so users can’t enter unreasonable values; this is an example of what kind of controls?
Internal
Which of the following best describes the first step in the process for developing business rules?
Identify important events (or steps) in a process
Which of the following best indicates the type of class for a Purchase Orders class?
Commitment Event
A subset of a data warehouse for a specific purpose is called a:
Data Mart
A data warehouse may include a:
General Economic Information.
Ebay may use business intelligence to:
Monitor the price of iPads at Amazon.
The computer-based technique to provide real-time information on business processes is called:
Digital Dashboard.
Internal Databases that might be included in a data warehouse would not include:
Competitor Information
Which group required the use of XBRL by all of its members?
SEC
XBRL stands for
eXtensible Business Reporting Language.
XBRL Instance Documents include
Document containing XBRL elements.
XBRL style sheets
Add presentation elements to instance documents.
The stated advantages of XBRL GL do not include:
Neutrality
The stated advantages of XBRL GL do include:
Reporting independence
System independence
Flexibility
SOX was filled the need for what?
SOX filled the need for a Code of Ethics
What does SOX require
SOX requires public companies registered with the SEC and their auditors to annually assess and report on the design and effectiveness of internal control over financial reporting
SOX established the ________
the Public Company Accounting Oversight Board (PCAOB) to provide independent oversight of public accounting firms
What is PCAOB Auditing Standard No. 5
PCAOB Auditing Standard No. 5 (AS 5) encourages auditors to use a risk-based, top-down approach to identify the key controls
What is corporate governance
A set of processes and policies in managing an organization with sound ethics to safeguard the interests of its stakeholders
Internal control does what?
Internal control involves the processes that an organization implements to safeguard assets, provide accurate and reliable information, promote operational efficiency
Testable Fact
According to SOX, the establishment and maintenance of internal controls is a management responsibility
Three main functions of internal control:
Preventive controls
Preventive controls deter problems before they arise. (Authorization)
Three main functions of internal control:
Detective controls
Detective controls find problems when they arise. (Bank reconciliations and monthly trial balances)
Three main functions of internal control:
Corrective controls
Corrective controls fix problems that have been identified. (Backup files to recover corrupted data)
Computerized environment:
General controls
General controls pertain to enterprise-wide issues such as controls over accessing the network, developing and maintaining applications, documenting changes of programs, etc.
Computerized environment:
Application controls
Application controls are specific to a subsystem or an application to ensure the validity, completeness and accuracy of the transactions.
Computerized environment:
Application controls
Application controls are specific to a subsystem or an application to ensure the validity, completeness and accuracy of the transactions.
Testable Fact
The SEC requires management to evaluate internal controls based on a recognized control framework
COSO ERM is ____
COSO ERM framework: focuses on the strategic alignment of the firm’s mission with its risk appetite.
Control Objectives for Information and related Technology (COBIT):
a control framework for the governance and management of enterprise IT.
COSO 2.0
Internal control is a process consisting of ongoing tasks and activities. It is a means to an end, not an end in itself.
Internal control is affected by people. It is not merely about policy manuals, systems and forms. Rather, it is about people at every level of a firm that impact internal control.
Internal control can provide reasonable assurance, not absolute assurance, to an entity’s management and board.
Internal control is geared toward the achievement of objectives in one or more separate but overlapping categories.
Internal control is adaptable to the entity structure.
COSO 2.0
Five components of internal control: Control Environment Risk Assessment Control Activities Information and Communication Monitoring Activities
Risk Assessment
A dynamic process for identifying and analyzing a firm’s risks from external and internal environments.
Control Activities
A firm must establish control policies, procedures, and practices that ensure the firm’s objectives are achieved and risk mitigation strategies are carried out.
Monitoring Activities
The design and effectiveness of internal controls should be monitored by management and other parties outside the process in an ongoing basis.
Four categories of objectives:
Strategic—high-level goals, aligned with and supporting the firm’s mission and vision
Operations—effectiveness and efficiency of operations
Reporting—reliability of internal and external reporting
Compliance—compliance with applicable laws and regulations
