Exam 3 Flashcards
Which type, view-driven or event-driven, is described as a traditional accounting system that may incorporate some forms of IT (information technology), but its defining characteristic is its focus on the general purpose financial statements?
View-Driven
Which type, view-driven or event-driven, is described as being more complex and defined by its focus on business processes?
Event-Driven
What are 5 key problems with view-driven systems?
Focus on a very small group of important, recordable in AIS with DR and CR, business events; Periodic, outdated; Only captures limited data from transactions; Limit decision making information; Internal Controls often protective and expensive.
What do Event-driven systems do that view-driven do not?
Capture more data from individual transactions, Organize data to be accessible and understood by variety of people; Can answer questions about inventory transactions
What is the name of the documentation technique designed to facilitate the design and implementation of event-driven AIS?
REA Modeling
What does the REA in REA Modeling stand for?
Resources, Events, and Agents
Name the 3 categories of “events”
Operating, Information and Decision/Management Events
Which type of “events” focus on activities involved with providing goods and services to customers?
Operating Events
Which type of “events” deal with preparing financial statements or updating accounting records?
Information Events
Which type of “events” involve human decision making?
Decision/Management Events
What types of events are captured in the REA Model?
Operating and Information Events
Which of the 3 elements of an REA model have people involved in the information system and where are they located on an REA Model?
Agents, Right
What type of agent includes employees in all departments?
Internal Agent
What type of agent includes customers, vendors, and other stakeholders?
External Agent
Which of the 3 elements of an REA model include things agents need to complete the events and where are they located on an REA Model?
Resources, Left
Which of the 3 elements of an REA model appear in the middle?
Events
In an REA Model, what tells an accounting professional about the relationship between its elements?
Cardinalities
When Establishing cardinalities, what ?’s must be asked?
For each inventory item, what is the minimum/maximum number of Order events involved? For each Order event, what is the minimum/maximum number of inventory items involved?
Which normal form eliminate repeating groups; each field contains single value, and no dupes exist
1st Normal Form - 1NF
Which normal form eliminates redundant data; accomplished by creating junction tables to establish data relationships
2nd Normal Form - 2NF
Which normal form eliminates columns not dependant on primary key
3rd Normal Form - 3NF
What is Referential Integrity?
ensures relationships are maintained; any value in a foreign key column must be present in a primary key column of related table
For REA modeling, when the maximum cardinalities between two elements are one and many, what must we include?
the primary key from the “one side” in the table on the “many side.”
When the maximum cardinalities are many and many, what do we need to do?
we need a separate table (junction) to store the relationship
What Documentation model is used to describe a database and is very similar to REA models?
Entity-Relationship Diagram - ERD
What similarities do REA Models and ERD’s have in common?
Cardinalities and Entities
What term means “things” about which data is stored
Entities
What elements in REA modeling are considered entities?
resources and agents
What are the differences between REA Models and ERD’s (Entity-Relationship Diagram)?
Include junction tables and does not explicitly include “events,” verbiage uses only nouns
TERMS: Language can be expanded without limit
Extensible
TERMS: A spec (or “part”) of XML; focused on business reporting information
Specification
TERMS: Basic organizational unit of the XBRL language; sets of tags
Taxonomy
TERMS: – Internet address where the taxonomy is stored; must be declared at the beginning of XBRL docs so the system knows where to find the meaning of each tag
Namespace
TERMS: Specific example, like a company’s income statement or balance sheet, of properly tagged XBRL information
Instance Document
How can XBRL benefit organizations?
More efficient data collection and reporting: Reduce Cost, Faster, more reliable consolidations, simplify regulatory reporting, Free comp from proprietary reporting systems. Facilitates data consumption and analysis: more time for value-added tasks, improves accuracy and reliability of financial data, faster, more efficient decision-making, and better communication with external stakeholders.
TERMS: Taxonomy that has to conform to a specific version of XBRL
Acknowledged Taxonomy
TERMS: Must conform to a specific version and to guidelines for specific taxonomy type (i.e. financial reporting)
Approved Taxonomy
Name 3 tagging software often built-in to business apps:
Peachtree, Quickbooks and Excel
Name 3 stand-alone tagging tools:
EZ-XBRL, Crossfire, UB Matrix
What are the risks associated with using XBRL?
Compromised data (theft, loss, manipulation), Tagging errors, Hardware/Software Failure, Inappropriate/missing authorizations and inappropriate taxonomy selection
Each tag in XBRL includes:
Taxonomy used, Element Name, Time Data, Currency Data and Number of Decimals. EX: 100000
What do the elements of tags in XBRL include with labels?
Capital letters EX:“AssetsHeldSale”
What are tags enclosed in?
Brackets < >
What do XBRL tags and HTML have in common?
Similar “look” and feel of beginning and endings of tag
Many XBRL taxonomies are _________-_______?
Country-based
IFRS & Global Ledger taxonomies are ______-______?
Country-Independent
Nearly all Tagging is _________.
Automated
What is the purpose of XBRL?
Tool for labeling financial data, providing context for those data, enabling faster/more efficient (and universal) interpretation.
XBRL is ____ ______, and is part of _____.
Open Source; XML (extensible markup)
XBRL is software and hardware ________.
Independent
What entity requires XBRL tagging for filing?
SEC, but not GAAP
What is the not-for-profit consortium of over 600 organizations that build XBRL language and promote its use/adoption?
XBRL International (XBRL.org)
TERMS: Any business transacted over the internet or other computer networks
E-Business
What are the benefits of E-Business compared to traditional brick-and-mortar organizations?
Expanded marketing, reduced operating costs, streamlined operations, and faster/more efficient delivery of products/services.
What are the drawbacks/costs of E-Business in comparison to traditional brick-and-mortar organizations?
Network setup cost, Consequences of technology breakdowns/service interruptions, customer distrust, and the need for different, better internal controls.
What type of E-business includes any purchase made from a company online?
B2C
What type of E-business includes sales directly to companies?
B2B
What type of E-business includes IRS, NC DMV?
G2C
What type of E-business includes SEC’s EDGAR, IRS?
G2B
What type of E-business includes eBay and Craigslist?
C2C
TERMS: Modular relational database designed to provide comprehensive, integrated information for decision making
ERP System
What does ERP system stand for?
Enterprise Resource Planning Systems
In an ERP system, what module captures customer info, transaction history, preferences, contacts, referrals, etc.
Customer Relationship Management
In an ERP system, what module captures employee info, from basic to performance & development plans
HR
In an ERP system, what module captures vendor info, transaction history
Supply Chain
In an ERP system, what module captures AIS, budget/forecast, etc.
Financial Management
What are the common causes of an ERP system failure?
Poor leadership, Poor underlying business processes , Unrealistic expectations , Bad project management, Lack of training, Mismatch between ERP system and org structure/processes, Bad data, ERP implementation seen as just an IT project, and Technical difficulties/insufficient hardware
What are the conditions for success of an ERP system?
Organizational Commitment (starting at the top of org), Clear Communication (Everyone needs to understand the goals of ERP implementation), View ERP as an enterprise-wide venture (Involvement from everyone, not just technology functions), Compatible ERP System, Resolve Multisite Issues (multiple sites make implementing more complicated), and Accurate data (fix before implementation)
Name the benefits of using an Application Service Provider with respect to E-Business.
Lower cost, Increased flexibility, Potential customer service improvement, Disaster recovery/continuity
Name the risks of using an Application Service Provider with respect to E-Business.
Psychological factors, Service interruptions, Compromised data and Contracts for service
What is and what do Application Service Providers do?
Third party vendor, Deploys, hosts, and manages access to packaged application, and is a Software-based service provided over network
TERMS: According to Carters taxonomy; criminal is targeting the system or its data, impacting confidentiality, availability, and/or integrity
Target
TERMS: According to Carters taxonomy; Uses computer to further a criminal end, i.e. to commit the crime
Instrumentality
TERMS: According to Carters taxonomy;computer is not required but simplifies the criminal actions and may decrease traceability
Incidental
TERMS: According to Carters taxonomy; new versions of old crimes
Associated
TERMS: Risks and Threats to Info System; data diddling, theft of info
Fraud
TERMS: Risks and Threats to Info System; ranges from single entry error to programmatic error
Error
TERMS: Risks and Threats to Info System; lead to lost business, missed deadlines; can be accidental, willful neglect, or malicious behavior
Service interruption/Delays
TERMS: Risks and Threats to Info System; adhere to privacy laws and protect sensitive data, otherwise lose trust of customers, etc.
Disclosure of confidential information
TERMS: Risks and Threats to Info System; For profit or for fun
Intrusions
TERMS: Risks and Threats to Info System; trade secrets, R&D, customer info
Information Theft
TERMS: Risks and Threats to Info System; hard to detect and “easy” to commit; risk at every stage of processing
Information Manipulation
TERMS: Risks and Threats to Info System; malware – virus, worm, trojan horse, logic bomb
Malicious Software
TERMS: Risks and Threats to Info System; attack seeks to prevent proper operation of system and access by users/customers
Denial-of-Service
TERMS: Risks and Threats to Info System; digital graffiti, hacktivism
Web site defacements
TERMS: Risks and Threats to Info System; criminal threatens to release sensitive info, bring down site, etc. if demands are not met
Extortion
TERMS: Type of computer criminal; inexperienced hacker using others’ malicious code
Script Kiddies
TERMS: Type of computer criminal; anyone who invades an IS for malicious purpose
Hackers
TERMS: Type of computer criminal; hackers driven by financial gain
Cyber-criminals
TERMS: Type of computer criminal; spam, phishing, extortion
Organized Crime
TERMS: Type of computer criminal; trade secrets, customer lists, etc.
Corporate Spies
TERMS: Type of computer criminal; typically target financial systems, infrastructure, etc.
Terrorists
TERMS: Type of computer criminal; IT employees often have the keys to everything…
Internal Control Issues
Insiders
TERMS: Internal Control issue of protection of data against unauthorized disclosure, modification, or destruction, and protection of system itself against unauthorized use, modification, or denial of service
Information Security
What 3 things are controls implemented to achieve in respect to information security?
Confidentiality, Data Integrity, and Availability
Which of the 3 things controls are implemented to achieve; provide protection from unauthorized disclosure?
Confidentiality
Which of the 3 things controls are implemented to achieve; free from accidental or malicious modification or destruction?
Data Integrity
Which of the 3 things controls are implemented to achieve; data can be obtained in required timeframe?
Availability
Terms: Type of information security; protect physical aspects of the IS from malicious or accidental damage
Physical Controls
Terms: Type of information security; safeguards built into computer/telecom systems to protect electronic aspects
Technical Controls
Terms: Type of information security; management constraints, operational and accountability procedures
Administrative Controls
What is CoBIT?
Accountability framework; Control Objectives for Information and Related Technology framework
