AIS Flashcards
1
Q
Is a prescribed sequence of work steps performed in order to produce a desired result for the organization. A ____ is initiated by a particular kind of event and has a well-defined beginning and end.
A
business process
2
Q
Are the set of procedures and policies adopted within an organization to safeguard
its assets, checks the accuracy and reliability of its data, promote operational efficiency, and encourage adherence to prescribed managerial practices. For example, the requirement of McDonald’s to conduct cash counts at the end of the day and match it with the cash register.
A
Internal Controls
3
Q
Comprises the processes, procedures, and systems that capture accounting data from business processes; records the accounting data in the appropriate records; process the detailed accounting data by classifying, summarizing, and consolidating; and report the summarized accounting data to internal and external users.
A
AIS
4
Q
Output of AIS
A
- Trading partner documents such as checks, invoices, and statements.
- Internal documents.
- Internal reports.
- External reports
5
Q
is the organization and
control of all materials,
funds, and related information in the logistics process, from the
acquisition of the raw materials to the delivery of finished products to the end user
A
Supply chain management
6
Q
Generally, ___ comprises all types of technology used to create, store, exchange, and utilize information in its various forms, including business data, conversations, still images, motion pictures, and multimedia presentations.
A
information technology (IT)
7
Q
Is defined as the ancillary equipment, software, services, and related resources as applied to support business processes
A
IT
8
Q
IT usage to support business processes accomplishes one or more of the following objectives: (3)
A
- Increased efficiency of business processes
- Reduced cost of business processes
- Increased accuracy of the data related to business processes
9
Q
is the purposeful and organized changing of business processes to make them more efficient. __ not only aligns business processes with the IT systems used to record processes, it also improves efficiency and effectiveness of these processes.
A
Business Process Reengineering (BPR)
10
Q
is the smallest unit of information in a computer system, a shortened reference to binary digit
A
Bit
11
Q
Bit means
A
binary digit
12
Q
a unit of storage that represents one character. Normally made out of 8
digits
A
Byte
13
Q
Data hierarchy in computer
A
Bit
Byte
Field
Record
Database
Masterfiles
14
Q
is one item within a record (e.g. Last Name, First Name)
A
Field
15
Q
is a set of related fields for the same entity
A
Record
16
Q
is a collection of data stored on the computer in a form that allows the data to be easily accessed, retrieved, manipulated, and stored.
A
Database
17
Q
A ___ stores data in several two-dimensional tables that can be joined together in many varying ways to represent many different kinds of relationships among the data.
A
relational database
18
Q
are relatively permanent files that maintain the detailed data for
each major process.
A
Master Files
19
Q
files store records in sequence, with one record stored immediately after another
A
Sequential access
20
Q
are not written or read in sequential order; rather, their records are stored in random order on a disk
media
A
Random access
21
Q
(sometimes called direct access files)
A
Random access
22
Q
files that are stored sequentially, but can also be access randomly because an index allows random access to specific records.
A
Indexed sequential access method
23
Q
___ requires that a similar transactions be grouped together for a specified time; then this group of transactions is processed as a batch. ___ is best suited to applications having large volumes of similar transactions that can be processed at regular intervals.
A
Batch processing
24
Q
is the opposite of batch processing. Transactions are not grouped into batches, but each transaction is entered and processed one at a
time.
A
Online processing
25
the transactions processed immediately, and in real time,
so that output is available immediately. This is best suitable for applications in which there is a large volume of records, but only a few records are needed to process individual transaction.
Real-time processing
26
Processing Modes
Batch
Online
Real time
27
File Acess
Sequential Access
Random Access
Indexed Sequential Access
28
is an integrated collection of enterprise-wide data that generally
includes several years of nonvolatile data, used to support management in decision making and planning
Data Warehouse
29
contains the data that is continually updated as the transactions are processed
Operational database
30
is the process of searching data within the data warehouse for identifiable patterns that can be used to predict future behavior.
Data Mining
31
data collected is in the form where
the data fits the columns and rows. For instance, your CVSU Student number with a field of 9 digits. Others include names, address and details.
Structured Data
32
does not fit in columns and rows
and is normally a free form text with no fixed length. For instance Facebook and Twitter posts.
Unstructured Data
33
is known as high-volume, high-speed information that may be so large and diverse that it demands innovative forms of IT processing. This also provides key insights to decision making
Big Data
34
A ___ is two or more computers linked together to share information and/or resources
computer network
35
is a computer network that spans a relatively small area
Local Area Network (LAN)
36
multiple LAN connections via network connection.
Wide Area Network (WAN)
37
a global computer network or “information superhighway”.
Internet
38
a company’s private network accessible only to the employees of the company.
Intranet
39
a contemporary type of computer infrastructure which involves the use of shares services, software, and/or data stored on servers at a remote location.
Cloud Computing
40
similar to an intranet except that it offers access to selected outsiders, such as buyers,
suppliers, distributors, and wholesalers in the supply chain.
Extranet
41
is the use of electronic means to enhance business processes. It encompasses all forms of online electronic trading - consumer-based e-commerce and business-to-business transactions, as well as the use of IT for process integration inside organizations
E-business
42
is the intercompany, computer-to-computer transfer of business documents in a standard format.
EDI
Electronic Data Interchange
43
refers to two or more companies conducting business electronically.
“Intercompany”
44
The ___ aspect of the definition indicates that each
company’s computers are connected via a network.
computer-to-computer
EDI
45
A ___ is necessary so that various companies, vendors, and sellers can interact and trade electronically by means of EDI software.
standard business format
46
A __ system is a system of hardware and software that captures retail sale transactions by standard bar coding. A more advanced __ system automatically records sales, cost of
sales, and inventory records real time in the accounting software the company use.
Point of Sale System
47
A ____ is a system in which software matches an invoice to its related
purchase order and receiving report.
To institute an automated matching system, all of the relevant files must be online and constantly ready for processing. It reduces the time and cost of processing vendor payments and receivables.
Automated matching
48
is an invoice-less system in which computer hardware and software complete an invoice-less match comparing the purchase order
with goods received. This eliminates the need for the vendor to send an invoice, since payment is approved as soon as goods are received (when they match a purchase order).
Evaluated Receipt Settlement (ERS)
49
The name __ signifies that the receipt of goods is carefully evaluated and, if it matches the purchase order, settlement of the obligation occurs through this system.
Evaluated Receipt Settlement (ERS)
50
are both terms that refer to web-enabled receipt and payment of vendor invoices. __ enables a vendor to present an invoice to its trading partner via the Internet, eliminating the paper, printing, and postage costs of traditional paper invoicing
E-payables and electronic invoice presentment and payment (EIPP)
51
is a multi-module software system designed to manage all aspects of anbenterprise. __ systems are usually broken down into modules such as financials, sales, purchasing, inventory management, manufacturing, and human resources.
Enterprise Resource Planning
ERP
52
An __ is much more comprehensive and encompassing than
traditional accounting software. It includes modules to handle accounting functions and also incorporates modules for manufacturing, marketing, logistics, and human resources.
ERP software system
53
Management should ensure this
controls exists:
(6)
1. Enterprise Risk Management
2. Code of Ethics
3. COSO accounting internal control structure.
4. IT System control structure
5. Corporate governance structure
6. IT Governance structure
54
is defined as a process effected by an entity’s board of directors, management, and other personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect the entity, and manage risk to be within
its risk appetite, to provide reasonable assurance regarding the achievement of entity objectives.
Enterprise Risk Management
ERM
55
controls that apply to the overall accounting system and are not restricted to any particular accounting application.
General Controls -
56
are used specifically in accounting applications to control inputs, processing, and output.
Application Controls
57
Is an elaborate system of checks and balances whereby a company’s
leadership is held accountable for
building shareholder value and creating confidence in the financial reporting processes
Corporate Governance
58
The leadership, organizational structure, and processes that ensure that the enterprise achieve(s) its goals by adding value while balancing risk versus return over IT and its processes. IT governance provides the structure that links IT processes, IT resources, and information to enterprise strategies and objectives.
IT Governance
59
is used by small organizations, in whole, or in part to maintain their
accounting records. An entirely manual system would require documents and paper-based ledgers and journals
Manual systems
60
A __ is a record that captures the key data of a transaction, while turnaround document is an output of the accounting system that can be used as input in a different part of an accounting system.
These ___ are recorded in the General Ledger which provides details for the entire set of accounts used in the organization’s accounting systems. These also uses the General and Special Journals and Subsidiary Ledgers.
source document
61
is a systematic assignment numbers or letters to items to classify and organize them.
Coding
62
items are numbered consecutively so that gaps in the sequence code indicates missing items that should be investigated. (used in official receipts, invoices, cheques).
Sequence codes
63
blocks of numbers are reserved for specific categories of data.
Block code
64
two or more sub-groups of digits that are used to code an item.
Group code
65
letters and numbers that are interspersed to identify an item.
Mnemonic codes
66
A listing of all the numbers
assigned to balance sheet and income statement accounts. The account numbers allow transaction
data to be coded, classified, and entered into the proper accounts. They also facilitate financial statement and report preparation
Chart of Accounts
67
A ____ is an existing system in operation within an organization. It uses older technology in which the organizationnhas considerable investment and that it might be entrenched in the organization.
Usually these systems are also maintained and developed internally. In large companies, many ___ run on host-based mainframe computers. Meaning all significant computer processing takes place on the mainframe computer
legacy system
68
______ means that there are two types of computers networked together to accomplish application processing.
The server is usually a large computer that contains the database and many of the application programs.
The ____ are usually the PC-type computers, are networked to the server and work with the server in such a way that the network appears to be one integrated system for users.
Advantages includes PC clients perform as “smart” terminals that can accomplish some share of the processing tasks.
In most of these type of set-up, the server manages and stores the large database, extracts data from the database, and runs the large, complex application programs
Client-server computing
69
___ is a more centralized approach in computing. Normally there is a “third party hosting” where a host provides and maintains the hardware, installs the software and software updates on the server, and is responsible for the maintenance, upkeep, and backups.
Cloud computing
70
an agreement between the service provider of and the buyer/consumer.
Service Level Agreement (SLA)
71
Advantages of Cloud Computing
(4)
1. Scalability
2. Expanded Access
3. Infrastructure is reduced
4. Cost Savings
72
Revenue less than 250K
Small Companies
73
Revenue between 250k and 100M
Midmarket
74
Revenue between 100M and 500M
Beginning ERP or
Tier 2 ERP
75
Revenue above 500M
High end or Tier 1 ERP
76
___ are preprinted documents and sequentially prenumbered which
captures data for control purposes so that no duplicate or missing ___ will be missing. This strategy is useful in manual accounting by manually writing on the ___ such as invoices.
Source documents
77
(source document) This can also be used if there is an accounting software used, this is known as __ where items needed are keyed in by a person to the system. There are two methods however. Those that were manually written and then keyed in, and those that were __ in immediately and printed in a printer (only when the BIR allows it).
Keying
78
A ___ is a printed code consisting of a series of vertical, machine-readable, rectangular bars and spaces that vary in width and are arranged in a specific way to represent letters, numbers, and other human-readable symbols
bar code
79
These are read and decoded by __ scanners and is used to identify retail products, identification cards, and other items. This also manage the work in progress, track documents, and facilitate many other automated identification applications.
bar code
80
A _____ is a method of using hardware and software captures retail sales transactions by standard bar coding. This is usually integrated into a cash register.
The __ hardware and software automatically input the data when the barcode is read as the product passes through the scanner.
In today’s world, __ systems can be integrated into the accounting software for automatic recording of sale. However, older process would normally extract the day’s data from a __ and is manually entered by batch in the accounting software
point-of-sale (POS) system
81
transmits purchase orders, invoices, and payments electronically between trading partners. Since the transmission is electronic, the paper source documents and the manual keying of those documents are eliminated.
This reduces time, cost, and errors.
Electronic Data Interchange (EDI)
82
A major difference
between EDI and e‐business (including e‐commerce) is that EDI uses dedicated networks, while e‐business uses the Internet. As is true for EDI, when data is exchanged electronically between trading partners, much of the manual data input process is eliminated, thereby reducing time, cost, and errors.
READ
83
is best suited to applications having
large volumes of similar transactions that can be processed at regular intervals. For instance, payroll
Batch processing
84
is best suited to applications in which there is a large volume of records, but only a few records are needed to process any individual transaction.
Online processing
85
A ___ is a graphical representation of
the flow of data within an organization, including data sources/destinations, data flows, transformation processes and data storage
data flow diagram
86
the entity that produces or sends the data that is entered into a system
Data source
87
the entity that receives data produced by a system
Data destination
88
the movement of data among processes, stores, sources and destinations
Data flow
89
A __ is a pictorial, analytical technique used to describe some aspect of an information system in a clear, concise, and logical manner.
__ record how business processes are performed and how documents flow through an organization.
flowchart
90
llustrates the flow of documents and data among areas of responsibility within an organization
Document flowchart
91
used to describe, analyze, and evaluate internal controls, including identifying system strengths, weaknesses, and inefficiencies.
Internal control flowchart
92
depicts the relationships among system input, processing, storage
and output
System flowchart
93
illustrates the sequence of logical operations performed by a computer in executing a program
Program flowchart
94
a visual way to describe the different steps or activities in a business process.
Business Process Diagram (BPD)
95
is a set of interrelated, centrally
coordinated data file that are stored with as little data redundancy as possible.
Database
96
are programs that manages and controls the data and the interface between the data and the application programs that use the data stored in the database.
Database Management Systems
97
All the fields containing data about one entity is called a
record
98
___ were developed to address data proliferation of master files.
Databases
99
is the one responsible for coordinating, controlling, and maintaining the database.
Database Administrator
100
A ___ is one or more very large databases containing both detailed and summarized data for a number of years that is used for analysis rather than transaction processing
data warehouse
101
is used to analyze large amount of data for strategic decision making.
Business Intelligence
102
uses queries to investigate hypothesized relationships among data
Online Analytical Processing (OLAP)
103
___ uses sophisticated statistical
analysis to discover un-hypothesized relationships in the data.
Data Mining
104
ADVANTAGES OF DATABASE SYSTEMS
Data Integration. Master files are combined into large “pools” of data that many application programs access.
Data Sharing. Integrated data are more easily shared with authorized users. Databases are easily browsed to research a problem or obtain detailed information underlying a report.
Minimal Data Redundancy and Data Inconsistencies. Because data items are usually stored only once, data
redundancy and data inconsistencies are minimized.
Data Independence. Because data and programs that use them are independent of each other, each can be changed without changing the other. This facilitates programming and simplifies data management.
Cross-Functional Analysis. In a database system, relationships, such as association between selling costs and promotional campaigns, can be explicitly defined and used in the preparation of management reports.
READ
105
A ___ is a document that shows the items stored in a file, including the order and length of the data fields and type of data stored
record layout
106
The ___ is how people conceptually organize and understand relationships among data
logical view
107
The ___ refers to the way data are physically arranged and stored in the computer system
physical view
108
is a description of data elements in a database, the relationships among them, and the logical model used to organize and describe the data
Schema
109
is the organizationwide view of the entire database, list all data elements and the relationships among them.
Conceptual-level schema
110
is an individual user’s view of proportions of a database, each of which is referred to as a subschema.
External-level schema
111
is a low-level view of the database, describes how the data are stored and accessed, including record layouts, definitions, addresses, and indexes.
Internal-level schema
112
is a subset of the schema; the way the user defines the data and the data relationships.
subschema
113
Enterprise view of the entire database
Conceptual level
114
A set of individual user logical views of portion of the database
External Level
115
Details about data storage, such as record layouts, definitions, addresses, indexes
Internal Level
116
builds the data dictionary, creates the database, describes the logical views, and specifies record or field
security constraints.
Data Definition Language
117
changes the database content, including data element creations, updates, insertions, and definitions.
Data Manipulation Language
118
is a high-level, English-like language that contains powerful, easy-to-use commands that enable users to
retrieve, sort, order, and display data.
Data Query Language
119
DBMS language that simplifies report creation
Report writer
120
are an abstract representation of
database contents
Data models
121
is a two-dimensional table representation of data, each row represents a unique entity and each column is a field where record attributes are stored.
Relational data model
122
a row in a table that contains data about abspecific item in a database
table.
Tuple
123
is the database attribute, or combination of attributes, that uniquely identifies a specific row in a table
primary key
124
is an attribute in a table that is also a primary key in another table and is used to link the two tables.
foreign key
125
___ is foreign keys which link rows in one table to rows in another table must have values that correspond to the value of a primary key in another table.
Referential integrity rule
126
is a non-null primary key ensures that every row in a table represents something and that it can be identified.
Entity integrity rule
127
Primary keys cannot be __
null
128
Every column in a row must be
single valued
129
following relational database creation rules that is free from delete, insert, and update anomalies
Normalization
130
the designer uses knowledge of business processes and information needs to create a diagram that shows what to include in the database
Semantic data modeling
