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Analysis & Design Acct Systems (ACCT 4342) > Chapter 1 (The Information System) > Flashcards

Chapter 1 (The Information System) Flashcards

1
Q

supports operations level tasks with highly detailed information about the business transactions that have occurred (sale, shipment of goods, use of labor and material, and transfer of resources)

A

horizontal flow of information

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2
Q

information down from senior management to through to operations and back up from operations to senior management

A

vertical flow

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3
Q

product-oriented work of the business (manufacturing, sales, distribution, billing)

A

operations

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4
Q

controlling day to day operations

A

operations management

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5
Q

short term planning and coordination of activities

A

middel management

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6
Q

longer term planning and setting organizational objectives

A

top management

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7
Q

Three fundamental objectives common to all organizations are:

A
  1. support stewardship function of management
  2. support management decision making
  3. support day by day operations
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8
Q

manager’s responsibility to properly manage the resources of the firm and to report on their activities

A

stewardship

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9
Q

set of formal procedures by which data is collected, stored and processing into information & distributed to users

A

information system

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10
Q

___ processes non-financial transactions that are not normally part of the ___:

For example:

  • capital budgeting
  • product analysis
  • delivery scheduling
  • employee benefits
A

MIS; AIS

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11
Q

The ___ accepts inputs known as ___ that are processed and turned into ___.

A

IS; transactions; information

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12
Q

an event that affects or is of interest to the organization and is processed by its information system as a unit of work.

A

transaction

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13
Q

economic events that effect the assets and equities of the organization is reflected in its accounts and is measured in monetary terms

A

financial transactions

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14
Q
  • paying for products
  • paying for service
  • buy inventory
  • all have debits and credits
  • purchase of an airline ticket
  • sale of a textbook
A

financial transaction

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15
Q
  • wanting your new name on your diploma
  • changing address
  • adding a new customer
  • changing a customer’s address
A

non-financial transactions

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16
Q

all other events processed by the organization’s information system

A

non-financial transactions

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17
Q

subsystem of the IS that processes financial transactions and non financial transactions that directly effect the processing of financial transactions

A

AIS

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18
Q

What are the three subsystems of the AIS:

A
  1. transactions processing Subsystem
  2. general ledger/financial reporting subsystem
  3. management reporting system
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19
Q

supports daily business operations
Converts economic events into financial transactions, records financial transactions in the accounting records and distributed essential financial information to operations personnel to support daily activity.
Revenue cycle, expenditure cycle, and conversion cycle

A

transactions processing Subsystem

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20
Q

creation of the traditional financial statements
Input into the GL/FRS system is from the transaction system
Summarizes transactions and accounts for non-frequent transactions
FRS generates the output financial statements
FRS focuses on non-discretionary reporting due to the fact that the format and information is generally defined by GAAP, IRS, etc.

A

general ledger/financial reporting subsystem

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21
Q

special purpose reports used to make decisions
discretionary reporting
Aids in the decision making of management
Budgets, variance analysis, cost reports, trends, etc.

A

management reporting system

22
Q
  • Focus on financial reporting information
  • Focus on processes and procedures that impact financial reports and information
  • Controls around AIS
A

Sarbanes-Oxley

23
Q
  • facts
  • may or may not be processed
  • have no direct effect on user’s actions
A

data

24
Q

causes the user to take actions

A

information

25
Q

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

A

data sources

26
Q

the most common source of data for most organizations.

A

external financial transactions

27
Q

involve the exchange or movement of resources within the organization.

A

internal financial transactions

28
Q

example:

sale of goods and services, purchase of inventory, receipt of cash, and disbursement of cash (including payroll)

A

external

29
Q

example:
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

A

internal

30
Q

Functions for transforming data into information according to the general AIS model:

A
  1. Data Collection
  2. Data Processing
  3. Data Management
  4. Information Generation
31
Q

Objective of data collection - To ensure that data entering system is:

A
  • valid
  • complete
  • free from material error
32
Q

has tables and in those tables you have records (rows) that capture attributes which is the aptitudes of those records

A

database

33
Q

A Logical and relevant characteristic of an entity about which the firm captures data. Relevant because if missing the record does not make sense
Logical because relate to the entity

A

Attribute

34
Q

A complete set of attributes for a single occurrence with an entity class. Needs a unique identifier so that each record can be located. Primary Key.

A

record

35
Q

Complete set of records of an identical class.

A

file (table)

36
Q

assign new records and stores them

A

storage

37
Q

task of locating and extracting an existing records from the database for processing

A

retrieval

38
Q

permanently removing obsolete or redundant records from the database

A

deletion

39
Q

Process of compiling, arranging, formatting, and presenting information to users.

A

information generation

40
Q

What are the characteristics of useful information:

A
  • relevance (serves a purpose)
  • timeliness (no older than the time period of the action it supports)
  • accuracy (free from material errors)
  • completeness (all information essential to a decision or task is present)
  • summarization (aggregated in accordance with the user’s needs
41
Q

Value of information is determined by its ___.

A

reliability

When information is useful and consistently present, the information is reliable and has value to the user.

42
Q

Output of one system that becomes a source of data into the same or another system.

A

feedback

43
Q
  • Manages the financial information resources of the firm
  • role in transaction processing
  • independence –> separation of duties
A

accounting function

44
Q
  • Captures and records the financial effects of the economic events known as transactions
  • Distributes transaction information to operations personnel to coordinate their key tasks
A

role in transaction processing

45
Q
  • So much reliance on systems
  • Accountants must be able to clearly convey their needs to the systems professionals who design the system.
  • The accountant should actively participate in systems development projects to ensure appropriate systems design.
A

accountants’ role in AIS

46
Q

the domain experts and responsible for the conceptual design of the AIS.

A

accountants

47
Q

design involves specifying the criteria for identifying delinquent customers and the information that needs to be reported.

A

conceptual system

48
Q

What are the different types of audits?

A
  • external (financial) audits: do not work within the company
  • internal audit: work within the company
  • fraud audit: this is where we look for fraudulent transactions
49
Q

process of affirming or certifying in an official manner.

A

attestation

50
Q

an independent appraisal function established within an organization to examine and evaluate its activities as a service to the organization.

A

internal audit

51
Q

investigate anomalies and gather evidence of fraud that may lead to criminal conviction.

A

fraud audit

Analysis & Design Acct Systems (ACCT 4342) (3 decks)

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