Business Process & Information Technology Flashcards by Junaid Javed

If an entity wants to implement a system in the business, what procedures should they follow?

design an optimal process and then align the software

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What are the advantages of selecting implementing enterprise resource planning (ERP) Software

Single database
Timely information
Unified systems multiple systems and business functions together in one system
single database unify multiple systems and business functions under one database and facilitate timely reporting

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What do decision Support System help do?

Helps provide the users an access to knowledge and models to support judgements and course of action

Accountants use this as tool to make assist them in making decisions such as revenue forecasting during budgeting process

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What’s the main objective of Customer Relationship Management (CRM) ?

Customer Relationship Management automate sales, marketing processes, manage customer data, increase revenue and improve customer service

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What’s the purpose of enterprise resource planning ERP?

to automate business processes and share common data

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What would be the advantage of computer based system for transaction processing over a manual system?

Computer based system uses more codes and relies less on humans to interaction and computer coding for the process

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What are the data Governance principals?

Auditability, integrity, transparency, accountability, standardization, stewardship, change in Management, and checks and balance

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What is the goal of Data governance?

strategic goals, and objective through the management and control of IT acquisitions, deployment and use

balance risk versus return over IT and its process

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What are IT governance objective vs management?

Evaluates IT strategic options and management is make sure those objective are achived and oversees

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What type of computerized data processing system, would be most appropriate if a company opens a new retail location?

Real time processing because it allows companies inventory and sales to be updated as soon as the transactions are taken place

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What is a unique concern for Software as a Service SAAS?

processed data and the high costs of migrating data

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What transaction processing provides the most accurate and complete infor for decison making?

Online provide the most information on a timely manner

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When an online order has been processed what advantage would online would have over batch sales order processing system?

Online system the journals entries and ledgers would be immediate and simultaneous. Also, when the order is processed online the they would know immediately when orders are received

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When there is an issue on an employees checks, what batch financial would be used?

A payroll batch processing

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What is a firewall?

Firewall is tool that prevents unauthorized users from accessing data on a network segment

also separates or isolates a network segment from the main network

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If an accountant is using the “Batch processing method” How are the individual transactions are posted on the ledger?

They are posted into groups before they posted and each transaction has it’s own line of entry in the ledger

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When a company rep mistakenly applied the customer payment to different customers account how can that be prevent?

If there is a situation where a company rep mistakenly processed the payment to different customers account they would need to complete a “Closed loop verification” that would prevent the issue from occuring in the future by entering the customers info and the info will display the data entry clerk to recognize and correct the mistake prior from occurring

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What is the primary function of database management system?

has the abiility to create, modify, summarize information contained in an electronic

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What is the primary function of Value Added Network (VAN)

links two different computers together so when that occurs we need to increased security over the data transmissions

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When evaluating a cloud service data security a company should consider which risk factors?

provided third party supliers
multi tenant architecture
cloud of cloud agreement

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What is one way to detect computer based fraud?

By using a system access log where you can detect check the details of the login activity to detect irregularities attempts

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AI Information systems that cannot learn from experience?

rule based expert systems

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Purpose of ERP Enterprise Risk Planing

integrate data from various business units a single system with single database

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If an employee obtains a blank check and make it payable to a fictitious company what internal control would not be able to prevent this?

Bank reconciliations

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when you short the party that is being shorted

receiving shipments is in the long position

Disadvantage to private key to encrypt data?

both the sender and receiver must have the private key before this encryption method

Are internal controls important in EDI system?

Preventive controls are more important than segregation of duties because preventive controls help prevent frauds and errors which is highly critical in a system like EDI

What is EDI Electroic Data Interchange?

data from different companies are connected and that allows to ship products without using humans

Why does EDI needs Translation software?

in order to transform incoming and outgoing transmission from the standard protocol into the one used internally

What are the benefits of using EDI?

EDI make receiving payments easier and quicker also it shortern the business cycle and reduces the AVG receivable balances reduce the likelhood of stock out of costs

What happens when Auditor are doing audits on EDI?

Lack of physical documents which causes auditors to conduct more testing and internal controls

What are the applications controls?

- Preventative controls - preventing the error or fraud from happening - Detective Controls - detecting errors and fraud from occurring - Corrective Controls - allows individuals users to follow up and detected errors and fraud

What are the three type of remote strategies?

Cold site is a recovery where the you need to install the equipment and transfer the data before the recovery process begins. Also the cheapest option and takes the most time since seting up the systems may take weeks to months Hot Site is recovery site where all the equipment are ready to go for the recovery. Also the costliest to maintain Warm sites recovery time hours to days and the equipment and software may need additional operations for data loading

What controls are used to ensure input controls used?

Input controls

What type of planning would a business select if they wanted to focus on a effective restore business disater?

Completing planning

What are some examples of preventative controls?

password management, software, encryption and digital certifications

What is the primary purpose of the disaster recovery plan?

Is to specify the steps required to resume operations. these steps would be key to know what to do if there was a recovery and are the necessary steps

What are the elements that represent the most complete disaster recovery plan?

Alternative processing site, backup and off site storage procedures, identification of critical applications, test of the plan

What input control would be able to prevent an incorrect state abbreviation?

Validity checks

What are the six system development life cycle?

analysis design development implementation testing maintenance

A large multinational organization job responsibilities should be assigned to the network administrator?

Manage day to day operation remote access

What creates the strongest mechanism for monitoring controls in the new foreign venture?

An internal audit is being performed provides the strongest mechanism

Factors that has the greatest impact on the design of effective management reporting system?

types of decisions that needs to be made.

What attributes make management report greatest impact on management ability to make decisions?

the report needs to be relevant for it to make an impact on the reporting and making decisions

An internal audit manager will request infor in regards the type and amount of training that is being conducted for the IT department. The training records provide documentation for what priniple?

demostrates commitment to reain competent to alignment with objective

What is the benefits of having a computer based system for transaction processing over manual system?

A computer based system would be more efficient than a manual system Key word to remember is "Efficient" it would be more accurate cause both data entry are conducted by humans

What type of management reporting system has credit card international developed?

On-Line Analytical processing system

Which individuals reviews and approves long range plans and overseas information systems?

system steering committee

What is the primary goals of information techonology IT Governance?

balance risk over return over IT and it's process

What are the data governance principals?

integrity, transparency, and auditability the main purpose of these principals are making sure the data roles and responsibilities and obligations

In Business Information System the term "Stakeholder" is refers to which of the following?

Anyone in the organization that has a role in creating or using documents

What happens to detailed posting types in accounting when batch process system is used?

posting would be assigned into to groups and each transaction would have it's own line entry in appropriate ledger

Tax shield formulas

Cash expense Ex - salaries, utililties, and insurance Formula Expense x (1 - tax rate) Noncash expense Ex - Depreciation, losses, amortization Formula Expense x tax rate

if a company wanted to use a computerized data processing a new retail location?

Real time processing because allows updates as soon as transactions are taken in place

What can be discovered using a data mining process?

Previously unknown information

What features does XBRL have?

it's online business reporting and it tag idenitify the report on the financial statements

In internal control in a electronic data interchange EDI System, What types of controls are most\ important?

Preventive controls are more important than detective controls in EDI systems

What is an advantage of using the internet for electronic commerce rather than a traditional value added network VAN?

since the internet isn't a batch processing system it doesn't posses the superior disaster recovery characteristics. Also in order to transact business over the internet the data must be converted to standard format

What is a digital signature used for primarily?

unaltered in transmission

A Value Added network (VAN) is a privately owned network that performs what kind of functions?

route data transaction trading partners

What type of Artifical system cannot learn from experience?

ruled based expected programed to not learn from prior experiences

What transactions provides the most accurate completed information for decision making?

Online

What advantages does Enterprise resource planning (ERP) have over multiple independent functional systems?

it increases the responsiveness, flexibility, and decision making

What step should business continuity plan should intiate first?

conducting a business impact analysis. BIA or business impact analysis assist critical business process where to ensure what would be the financial, legal, reputational and regulatory losses

The following isn't a major reason for maintaining an audit trail for a computer system?

analytical procedures because this is where the auditor would compare the clients data and since the client data wouldn't be significant

most effective restore business operations following disaster?

continuity planning because this is where this planning focuses on how can a business effectively restore and continue business operations following a disaster

A general control would be useful for an entity whose systems analyst left in the middle of a major project?

system documentation bc this allows users to understand and know what work has been completed and remains