AIS Flashcards
> specialized subset of information system that processes financial transactions.
Accounting Information System
> flows of information into and outdo the organization
Information Flows
external users
Trading Partners
> entities outside the organization with a direct or indirect interest in the firm, such
as stockholders, financial institutions, and government agencies
Stakeholders
> set of formal procedures by which data are collected, processed to information,
and distributed to others
Information System
> processes non-financial transactions not normally processed by traditional AIS.
Management Information System
> an event that affects or is of interest to the organization
can either be financial or nonfinancial
Transaction
> Economic event that affects the assets and equities of the organization.
Financial Transaction
> do not meet the narrow definition of a financial transaction.
Non-financial Transaction
produces traditional financial statement (financial statement, balance sheet,
statement of cash flows)
GEneral Ledger/Financial Reporting System
organization has few or no choices in the information it provides.
Non-discretionary Reporting
provides internal financing information needed to manage a business.
Management Reporting System
organization can choose what information to report and how to organize
it
Discretionary
model that describes all information systems
General Model for Accounting Information System
> users for whom the system is built.
internal users
End Users
reditors, stockholders, potential investors, regulatory agencies, tax authorities,
suppliers, and customers
External Users
> management in all levels of the organization as well as the operations personnel.
INternal Users
contracting with a third party vendor to take over the costs,
risks, and responsibilities a
IT Outsourcing
- location-independent computing variant of IT outSourcing
whereby shared data centers deliver hosted IT service over the internet
Cloud Computing
service providers host applications for client
organizations over a private network or the internet.
Software as a Service
provision of computing power and disk
disk space to client firms who access it from desktop PCs
i. Infrastructure as a Service
> responsible for effective functioning of the software and hardware that
constitute the organization’s network.
configuring, implementing, and maintaining network equipment..
Network Administration
system assembled of prefabricated software
components
Enterprise resource Planning
is the software development process
Systems Development Life Cycle
built to individual specifications
Custom Software
- completely finished and tested systems that are ready for
implementation.
Turnkey Systems
pre-coded software that user purchases from a
software vendor.
Commercial Software
reorganizing the IT function into small
information processing units (IPUs) that are distributed to end users and placed
under their control
Distributed Data Processing
- all data processing is performed by one or more
large computers, housed at a central site, that serve users. Throughout the
organization
Centralized Data Processing
keeps the firm’s machinery and other manufacturing facilities
in running order.
Maintenance
ensure that finished goods meet the firm’s quality standards.
Quality Control
scheduling of flow of materials, labor, and machinery to
efficiently meet the production needs
Production Planning -
most typical.
Business Function
separated for divisions only.
. Product Line
grouped according to geography
Geographical
Segments are functional units of a business organization
Functional Segmentation
compilation of all records.
file
combined set of all attributes
Records
logical, relevant, and independent characteristics
attributes
special software system that is programmed to know which data element each
user is to authorized to access
Database Management
process of compiling, arranging, formatting, and presenting information to
others.
Information Generation
> group that manages the computer resources used to perform the day-to-day
processing of transactions
Data Processing
first operational stage in the information system
Data Collection
> financial transactions that enter the information system.
can either be from internal or external source)
Data Sources
enables clients firms to develop and deploy onto the cloud infrastructure consume
Platform as a Service
production of several alternative designs for a new system
Conceptual System
- medium and method for capturing and presenting the
information
Physical System -
efficient information system that captures and stores data
only once and makes this single. Source available to all users who need it
Data. Storage
an independent auditor’s responsibility to opine as to the fair
presentation of a client firm’s financial statement.
Attest Function -
- tests that determine whether database contents fairly
reflect the organization’s transactions.
Substantive Tests
tests that establish whether internal controls are
functioning properly.
Test. Of Controls
- the review of computer-based components of an organization
IT Auditing
- appraisal function housed within the organization.
Internal Audits
