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CHAP 1 Flashcards

1
Q

What are the two main stages in the evolution of information systems?

A
  1. Accounting Information Systems
  2. Management Information Systems
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2
Q

What are the three roles of accountants in an information system?

A
  1. Information system users
  2. System designers
  3. System auditors
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3
Q

What do internal information flows involve?

A

Horizontal flows and Vertical Flows

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4
Q

What is the relationship between organizational level and information requirements?

A

Higher levels require more aggregated information and less detail.

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5
Q

A group of interrelated components or subsystems that serve a common purpose.

A

System

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6
Q

When it is viewed as a component of a larger system.

A

System

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7
Q

The set of formal procedures by which data are collected, processed into information, and distributed to users

A

Information system

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8
Q

A business event.

A

Transaction

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9
Q

What distinguishes financial transactions from non-financial transactions?

A

Financial transactions affect assets and equities; non-financial transactions do not.

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10
Q

Accounting is an information system that:

A

Identifies, collects, processes, and communicates economic information about a firm using a wide variety of technology

captures and records the firm’s
transactions

distributes transaction information to
operations personnel to coordinate many
key tasks.

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11
Q

What is the difference between AIS and Management Information Systems (MIS)?

A

AIS processes financial transactions and other nonfinancial that directly affects processing of financial transactions; MIS processes nonfinancial transactions.

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12
Q

What are the subsystems of AIS?

A
  • Transaction processing system (TPS)
  • General Ledger/Financial Reporting System (GL/FRS)
  • Management Reporting System (MRS)
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13
Q

are financial transactions that enter the information system from internal and
external sources.

A

Data sources

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14
Q

What are the functions for transforming data into information according to the AIS model?

A
  • Data Collection
  • Data Processing
  • Data Management
  • Information Generation
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15
Q

What are the characteristics of useful information?

A
  • Relevance
  • Timeliness
  • Accuracy
  • Completeness
  • Summarization
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16
Q

What is the goal of an information system in a business context?

A

To support stewardship function of the management, management decision making, and firm’s day-to-day operations.

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17
Q

It ensures the reliability of information by keeping accounting activities separate from resource-maintaining functions.

A

What is the significance of accounting independence?

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18
Q

What are the potential advantages of Distributed Data Processing (DDP)?

A
  • Cost reductions in hardware and data entry tasks
  • Improved cost control responsibility
  • Improved user satisfaction since control is closer to the user level
  • Backup of f data can be improved through the use of multiple data storage sites
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19
Q

What are the potential disadvantages of Distributed Data Processing (DDP)?
LMHRCDL

A
  • Loss of control
  • Mismanagement of company resources
  • Hardware/software incompatibility
  • Redundant tasks and data
  • Consolidating tasks usually segregated
  • Difficulty attracting qualified personnel
  • Lack of standards
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20
Q

Transaction processing, information processing, and accounting performed physically by people.

A

manual process model

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21
Q

What are data redundancy problems?

A
  • Data Storage
  • Data updating
  • Currency of information
  • Task-data dependency
  • Data integration
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22
Q

What does the REA model represent?

A

It models an organization’s economic resources, events, and agents.

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23
Q

What is the role of accountants as information system users?

A

They must be able to clearly convey their
needs to the systems professionals who design the system.

They should actively participate
in systems development projects to ensure appropriate systems design.

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24
Q

True or False: Internal auditors provide appraisal services for in-house IS and IT.

A

True

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25
business resource
information
26
Accountants as System Auditors
External Auditors IT Auditors Internal Auditors
27
attest to fairness of FS
External Auditors
28
evaluate IT, often as part of external audit
IT Auditors
29
in house IS and IT appraisal services
Internal Auditors
30
determines the nature of the information required, its sources, its destination, and accounting rules that must be applied
conceptual system
31
[Accountants as System Designers] accounting function is responsible for the
conceptual system,
32
[Accountants as System Designers] computer function is responsible for the
physical system.
33
separate files are difficult to integrate across multiple users
data integration
34
user’s inability to obtain additional information as needs change
Task-Data Dependency
35
potential problem of failing to update all affected files
currency of information
36
changes or additions must be performed multiple times
data updating
37
excessive storage costs ofpaper documents and/or magnetic form
data storage
38
manual process model is useful to study because:
helps link AIS courses to other accounting courses. often easier to understand business processes when not to shrouded in technology. facilitates understanding internal controls.
39
Reorganizing the computer services function into small information processing units that are distributed to end users and placed under their control
distributed data processing
40
All data processing is performed by one or more large computers housed at a central site that serves users throughout the organization.
centralized data processing
41
flows of information used primarily at the operations level to capture transaction and operations data
Horizontal Flows
42
Under vertical flows _______ — instructions, quotas, and budgets _______ — aggregated transaction and operations data
1. downward flows 2. upward flows
43
Information is a business resource that:
1. needs to be appropriately managed 2. is vital to the survival of contemporary businesses
44
is considered a system when it is the focus of attention.
Subsystem
45
the process of dividing the system into smaller subsystem parts
system decomposition
46
distinct parts are notself-contained they are reliant upon the functioning of the other parts of the system all distinct parts must be functioning or the system will fail
system interdependence
47
What are the subsystems of MIS?
Finance Marketing Production Human Resources System Distribution
48
supports daily business operations
Transaction processing system (TPS)
49
supports daily business operations
Transaction processing system (TPS)
50
produces financial statements and reports
General Ledger/ Financial Reporting System (GL/FRS)
51
produces special-purpose reports for internal use
Management Reporting System (MRS)
52
The General AIS Model composed of:
External Sources of Data Internal Sources of Data Data Collection Data Processing Database Management Information Generation Internal End Users External End Users Feedback
53
are the most common source of data for most organizations
External Financial Transactions
54
examples of external financial transactions
sale of goods and services, purchase of inventory, receipt of cash, and disbursement of cash (including payroll).
55
involve the exchange or movement of resources within the organization.
Internal Financial Transactions
56
involve the exchange or movement of resources within the organization.
Internal Financial Transactions
57
examples of internal Financial Transactions
movement of raw materials into work-in-process (WIP), application of labor and overhead to WIP, transfer of WIP into finished goods inventory, and depreciation of equipment.
58
[Enumeration] What is being done with data collection?
1. capturing transactions data 2. recording data onto forms 3. validating and editing the data
59
[Enumeration] What is being done with data processing?
classifying transcribing sorting batching merging calculating summarizing comparing
60
[Enumeration] What is being done with data management?
storing retrieving deleting
61
[Enumeration] What is being done with information Generation
compiling arranging formatting presenting
62
[Enumeration] What is being done with information Generation
compiling arranging formatting presenting
63
serves a purpose
Relevance
64
no older than the time period of the action it supports
Timeliness
65
free from material errors
Accuracy
66
all information essential to a decision or task is present
completeness
67
aggregated in accordance with the user’s needs
Summarization
68
Information reliability requires what?
accounting independence
69
most companies fall ______ the distributed data processing and centralized data processing
in between
70
What are the Computer Services functions?
Distributed Data Processing Centralized Data Processing
71
[Accountants as Systems Auditor] broader in scope than traditional attestation audit
assurance service

AIS (3 decks)

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