AIS - Lesson 1(Prelim) Flashcards
is an event that affects or is of interest to the organization and is processed by its information system as a unit of work.
transaction
is the set of formal procedures by which data are collected, processed into information, and distributed to users.
information system
is a system that processes nonfinancial transactions not normally processed by traditional accounting information systems.
Management information system (mis)
is an economic event that affects the assets and equities of the organization, is measured in financial terms, and is reflected in the accounts of the firm.
financial transaction
are specialized subset of information systems that processes financial transactions.
accounting information system
are the flows of information into and out of an organization.
information flows
are the flows of information into and out of an organization.
information flows
is a category of external user, including customer sales and billing information, purchase information for suppliers, and inventory receipts information.
trading partners
is a category of external user, including customer sales and billing information, purchase information for suppliers, and inventory receipts information.
trading partners
are entities either inside or outside an organization that have a direct or indirect interest in the firm.
stakeholders
is an activity composed of three major subsystems—the revenue cycle, the expenditure cycle, and the conversion cycle.
the transaction processing system (tps)
is a system that produces traditional financial statements, such as income statements, balance sheets, statements of cash flows, tax returns, and other reports required by law.
general ledger
is a system that produces traditional financial statements, such as income statements, balance sheets, statements of cash flows, tax returns, and other reports required by law.
general ledger
is a system that provides the internal financial information needed to manage a business.
management reporting system (mrs)
is a system that provides the internal financial information needed to manage a business.
management reporting system (mrs)
is a type of reporting in which the organization can choose what information to report and how to present it.
discretionary reporting
is a type of reporting in which the organization has few or no choices in the information it provides. Much of this information consists of traditional financial statements, tax returns, and other legal documents.
non discretionary reporting
is a model that describes all information systems, regardless of their technological architecture.
general model for ais
is a model that describes all information systems, regardless of their technological architecture.
general model for ais
are users for whom the system is built.
end user
include management at all levels of the organization as well as operations personnel.
internal user
include management at all levels of the organization as well as operations personnel.
internal user
include creditors, stockholders, potential investors, regulatory agencies, tax authorities, suppliers, and customers.
external user
include creditors, stockholders, potential investors, regulatory agencies, tax authorities, suppliers, and customers.
external user
are facts, which may or may not be processed (edited, summarized, or refined) and which have no direct effect on the user. Information causes the user to take an action that he or she otherwise could not, or would not, have taken.
data
are facts, which may or may not be processed (edited, summarized, or refined) and which have no direct effect on the user. Information causes the user to take an action that he or she otherwise could not, or would not, have taken.
data
are financial transactions that enter the information system from either internal or external sources.
data source
is the first operational stage in the information system.
data collection
is the first operational stage in the information system.
data collection
is a group that manages the computer resources used to perform the day-to-day processing of transactions.
data processing
is a physical repository for financial data.• DATA ATTRIBUTE• RECORD• FILE• DATABASE MANAGEMENT TASKS:
database
is a physical repository for financial data.• DATA ATTRIBUTE• RECORD• FILE• DATABASE MANAGEMENT TASKS:
database
is the process of compiling, arranging, formatting, and presenting information to users.
• RELEVANCE
• TIMELINESS
• ACCURACY
• COMPLETENESS
• SUMMARIZATION
information generation
is a form of output that is sent back to the system as a source of data.
feedback
is the property of information that makes it useful to users.
reliability
is the separation of the record-keeping function of accounting from the functional areas that have custody of physical resources.
independence
is the separation of the record-keeping function of accounting from the functional areas that have custody of physical resources.
independence
is the production of several alternative designs for a new system.
conceptual system
is the production of several alternative designs for a new system.
conceptual system
is the medium and method for capturing and presenting the information.
physical system
is an efficient information system that captures and stores data only once and makes this single source available to all users who need it.
data storage
is an efficient information system that captures and stores data only once and makes this single source available to all users who need it.
data storage
is an expert who expresses an opinion about the fairness of a company’s financial statements.
auditor
is an expert who expresses an opinion about the fairness of a company’s financial statements.
auditor
is an independent auditor’s responsibility to opine as to the fair presentation of a client firm’s financial statement.
attest function
is an independent auditor’s responsibility to opine as to the fair presentation of a client firm’s financial statement.
attest function
are tests that determine whether database contents fairly reflect the organization’s transactions.
substantive test
are tests that establish whether internal controls are functioning properly.
test of controls
are tests that establish whether internal controls are functioning properly.
test of controls
is the review of the computer-based components of an organization. The audit is often performed as part of a broader financial audit.
IT auditing
is the review of the computer-based components of an organization. The audit is often performed as part of a broader financial audit.
IT auditing
is the appraisal function housed within the organization.
internal auditing
is the appraisal function housed within the organization.
internal auditing
