Chapter 7: The Impact of Technology on Financial Control Flashcards
5 responsibilities MSRTF
What are the Roles of the Financial Control Function?
- Management Accounting
- Statutory Reporting
- Regulatory Reporting
- Tax Management
- Financial Ops
2 reasons
What is the System Impact on Financial Control (Equities Trading System)?
- Calculating the commision that is to be paid by the clients.
- Trade Processing errors, resulting in inaccurate data being sent to a general ledger.
- Caused by Human Errors or Technical Errors
2 reasons
What is the System Impact on Financial Control (Bonds Trading System)?
- Calculates interest that is due to the holder
- Trade Processing errors, resulting in inaccurate data being sent to a general ledger.
- Caused by Human Errors or Technical Errors - Can also cause inaccurate REFERENCE data, due to interest needing to be paid.
What is the System Impact on Financial Control (FX Trading System)?
- Calculates interest and trade proceeds.
- Trade Processing errors, resulting in inaccurate data being sent to a general ledger.
- Caused by Human Errors or Technical Errors
4 reasons
What is the System Impact on Financial Control (Derivatives Trading System)?
- The accuracy of the sources availible
- The accuracy of the reference data for the underlying instrument.
- Human error
- Technical error
Ops roles at work?? 7 reasons
What is the System Impact on Financial Control (Main Settlement System)?
- Inaccurate reference data (client instructions)
- Inaccurate reference data (market prices)
- Corporate action processig problems
- System limitations
- Human errors
- Problems receiving external data (Clearing houses etc)
- Problems with interfaces
1 big reason
What is the System Impact on Financial Control (Reconcilliation System)?
- If time frames are inaccurate then there is no way of proving the datas accuracy.
2 reason, try to elborate on them
What is the System Impact on Technology Department?
- Development Impacts
- Support Impacts
what is it AKA?
What is the General Ledger?
AKA the “nominal ledger”
The main accounting record of a business which uses the double entry book keeping conventions.
D or C?
For a General Ledger, What is the Accounting Convention for an Asset?
Debit
D or C?
For a General Ledger, What is the Accounting Convention for a Liability?
Credit
D or C?
For a General Ledger, What is the Accounting Convention for Revenue?
Credit
D or C?
For a General Ledger, What is the Accounting Convention for Expenses?
Debit
D or C?
For a General Ledger, What is the Accounting Convention for Gains?
Credit
D or C?
For a General Ledger, What is the Accounting Convention for Losses?
Debit
D or C?
For a General Ledger, What is the Accounting Convention for Shareholder Equity?
Credit
What is Posting?
Recording the amounts as credits and debits on the page of the general ledger.
What is a Trial Balance?
The listing of all the account names and the sum of their balances.
Bookkeeping Equiation?
Assets = Liabilities + Stakeholders Equity
4
Reference Data Items?
1) A unique alphanumeric code to identify the account
2) The name of the account
3) A code that represents the type of account
4) The identity of the currency in which postings are made.
Balance Information Items?
1) The opening balance of the account
2) The date of the opening balance
3) The closing balance of the account
4) The date of the closing balance
Transaction Information Items?
1) The date of the transaction was carried out
2) The date the transaction is expected to settle
3) The date the T was entered into the GLS
4) The money value of the transaction
5) A description of the transaction
6) A code to represent the trasactio
7) Configuration origin code|
8) A unique transaction refernece number
It rhymes
What is an Explosion Table?
Contains the rules for deciding to which account a monetary amount of a transaction should be posted to
What do Explosion Tables Use “Indirect References”?
To prevent the tables form being millions of rows long.
What Does a Stock Record Show?
The ownership of the securities and the locstion of the stock
