Information Technology Flashcards
A unique characteristic of EDI is?
A unique characteristic of EDI is that transactions are UNIFORMLY FORMATTED so that they can be transmitted among parties electronically. EDI transactions, like all transactions, are REQUIRED to be reported in accordance with GAAP. Most e-commerce, including EDI transactions, is CONDUCTED over the INTERNET. EDI transactions are formatted using standards that are uniform worldwide.
One way the auditor can determine if data is altered during processing is?
One way the auditor can determine if data is ALTERED during processing is to run the AUDITOR’S OWN DATA through the CLIENT’S COMPUTER SYSTEM, referred to as the TEST DATA APPROACH, to determine if the results match the auditor’s expectations. If payroll data was altered during processing, the results would not match the auditor’s expectations.
An embedded audit module is?
An EMBEDDED AUDIT module is an AUDIT SYSTEM that is INSERTED into the CLIENT’S SYSTEM so that it can apply audit procedures to data as it is being processed.
A snapshot application involves?
A SNAPSHOT APPLICATION involves applying procedures to a SPECIFIC SET of data or at a SPECIFIC POINT in time.
An integrated data check involves?
An INTEGRATED DATA check involves integrating test data with the client’s data so that the auditor can see how the client’s system processes it.
A test data generator is?
A TEST DATA generator is used to develop data to be run through the client’s system to test it. The test data approach, allows the auditor to introduce examples of VALID and INVALID transactions to determine how the client’s system will handle them.
Parallel simulation involves?
Parallel simulation involves running client data through a program that is under the CONTROL of the AUDITOR that is presumed to be IDENTICAL to the client’s program, enabling the auditor to detect UNAUTHORIZED modifications to the program if the output differs from the client’s.
A firewall is?
A FIREWALL is set up as an ELECTRIC BOUNDARY to prevent a user from having access to programs or data that they are not authorized to have.
Heuristic refers to?
Heuristic refers to a method of analysis based on RULES, rather than LOGIC and is not related to access.
Mapping is?
Mapping is used to determine which elements correspond to the standards in an EDI system.
Decoding, translation and encryption are?
Decoding, translation and encryption are all part of the process to CONVERT the data into the appropriate form to enable the transaction (decoding and translation) and to limit access to the intended party (encryption).
An embedded audit module is?
An embedded audit module is an audit system INSERTED into the client’s system as a monitoring device to apply audit procedures to client data throughout the period.
