BEC 4 HW Flashcards
mnemonic: SEC consider what factor when selecting puc co for review
(C PERV) C=large market Cap; P=diff P/e ratio; E=affect Economy; R=issued mat Restatemnt; V=Volatility in stock
Information Quality
(FAIR) F=Fair; A=Accurate,Accessible,Appropriate, C=Current; T=Timely
CRIME (COSO Framework)
Control Environment; mgmt Risk Assess; Info & comm sys; Monitoring; Exist control activities
mnemonic: Components of ERM
(CRRRIMES) C=Control/internal enviro; R=assess Risk; R=id Risk; R=Risk response; I=Info & comm sys; M=Monitoring; E=Effective control activities; S=Setting objectives (orcS)
Control/Internal Environment Factors
(EBOCA HR) E=Ethical val & integrity; B=Board oversight; O=Org structure; C=Commitment to Competence; A=Accountability; HR=hiring, risk mgmt/appetite
objectives of cost accounting
(PIE) P=Product costing; I=Income; E=Efficiency
OPERATING budgets contain what factors? 4
(PPSS)Personnel, Production, Sales, Selling/Admin
3 major section of CASH BUDGET
- Cash Available; 2. Cash Disbursement; 3. Financing=line of credit
variable needed for flex budgets
- rev per unit; 2. vc per unit; 3. fc per unit
Order of budget preparation (5)
(Some People Make Cash Payments) 1. Sales; 2. Production; 3. Materials/Labo/OH purchased; 4. Cash; 5. Pro Forma F/s
3 purposes of standard costing systems
- cost control; 2. variance analysis; 3. learn from & improve processes
4 measures of SBU to which mgmt is held accountable
(CRPI=mgmt is creepy) C=Cost; R=Revenue; P=Profit; I=Investment
FEEDBACK w/in financial scorecards must be (AT US)
Accurate, Timely, Understandable, Specific
Factors w/in the BALANCED SCORECARD
(FICA) F=Financial; I=Internal bus processes; C=Customer satisfaction; A=Advancement of innovation & hr develpmnt
3 examples of off b/s transactions
- op lease; 2. lawsuits; 3. related party trans
FC / CM% =
Breakeven
Critical Success Factors are classified as 4 (hint Financial & non financial)
Human resource(aka Learning & Growth & Innovation), Business process, Customer satisfaction, Financial performance
COGM =
DM+DL+OH app + Bwip - Ewip
COGS =
COGM + Bfg - Efg
IRR =
Investment / Cash Flows = PV Factor
NPV =
Disc Cash Flow (after tax) - Initial Investment
Profitablility Index =
pv of future cash inflows / pv of initial investment =
CAPM formula =
Risk free rate + Beta (Market rate - Risk free rate)
NI / Investment =
ROI
“not taking discount” Q formula =
(360 / pay period ‘30’ - disc period ‘10’ days) x (disc % / 100% - disc%)
____ / Ave Ass = Ass TO
SALES
Cash Conversion Cycle =
Invy conversion period + A/R collection period - A/P deferral period
Invy conversion period + A/R collection period - A/P deferral period =
Cash Conversion Cycle
ebitda / interest expense =
times interest earned
included in disc cash flow anal 4
- future op cash save; 2. future ass dc; 3. current ass dc; 4. tax effects of future ass depre
accounting information system (AIS) aka
transaction processing system
a ____ directly outputs a report showing exceptions & control totals
a batch processing system
production & test data are stored
SEPARATELY
online promting’ assists in
accurate data entry
preformatted screen’ assists in
accurate data entry
data hierarchy
character, field, record, file, db
Business Info System (BIS) consists of
Hardware, Software, Network, Data, People
BIS allow a business to perform whay functions on data
(DePiCTS) Collect, Process, Store, Transform, Distribute
systems programers do what?
work with operating systems and compilers
systems analysts duties are oftem combined with those of
application programmers
systems analysts aka
systems integrator with purchased systems
the objective of data security controls is to
ensure storage media are subject to authoriztion prior to access, change, or destruction
7 components of COBIT framework
(ICE RACE) Integrity, Confidentiality, Efficiency, Reliability, Availability, Compliance, Effectiveness
COBIT
Control Objectives for Information and related Technology
in COBIT, Integrity is
Accurate, Complete, Valid
in COBIT, Effectiveness is
Timely, Consistent, Useful
in COBIT, Reliability is
Appropriate, Relevant
in COBIT, Efficiency is
Delivery of Info (bene over cost)
COBIT IT governance 5
Performance Measurement; Resouces mgmt; Risk mgmt; Strategic alignment
PO AI DS ME
Process & Organize; Acquire & Implement; Deliver & Support; Monitor & Evaluate
PO & purpose
Proces & Organize = DIRECT PROCESS
AI & purpose
Acquire & Implement = SOLUTIONS
DS & purpose
Deliver & Support = SERVICE
ME & purpose
Monitor & Evaulate = FOLLOW DIRECTIONS
a ____ is the intermediary between users and programmers
systems ANALYST
a ____ ensures that a message is not altered in transmission
digital signature
____ is computer to computer exchange of business data
EDI (via Value Added Network VAN)
____ filtering is the simplest type of firewall configuration
packet
3 tier architecture consists of
Desktop client, Application, Database
