Information Technology

Question 1

batch processing

Answer 1

the accumulation of info about similar events or transactions so that they can be entered into the accounting system at one time, increasing the efficiency of processing transactions but delaying the availability of info

Question 2

online transaction processing (OLTP)

Answer 2

the entering of events and transactions into the accounting system IMMEDIATELY as the events or transactions occur, rather than accumulating info for batch processing, increasing the speed with which info is available while increasing the cost of processing the info

Question 3

OLTP

Answer 3

online transaction processing

Question 4

network configurations

Answer 4

local area network
value added network
wide area network

Question 5

electronic commerce (e-commerce)

Answer 5

the conduct of business generally involving the buying and selling of products, including billing and payment, using electronic communication (electronic data interchange - EDI) between the computers of different entities such as suppliers and customers

Question 6

encryption

Answer 6

a security procedure involving the encoding of data to make it readable only to intended users

Question 7

decryption

Answer 7

the process of making encrypted data readable to the intended user

Question 8

firewall

Answer 8

a hardware device or software that is designed to prevent access to a network without explicit permission from the network admin

Question 9

virus

Answer 9

a program referred to as malware that can reproduce itself and insert copies of itself into other programs, data files or the hard drive, resulting in the affected areas being affected

Question 10

trojan horse

Answer 10

a seemingly harmless computer program with purposefully hidden malicious or damaging code within

Question 11

worm

Answer 11

a program that duplicates itself over a network to infect other computers with viruses and are different from viruses in that they can operate independently

Question 12

hoax virus

Answer 12

a message about a virus that does not actually exist, usually accompanied with instructions to forward the email message to others

Question 13

phishing

Answer 13

sending emails that appear to be from financial institutions or trustworthy entities in an attempt to get personal info for identity theft

Question 14

hot site

Answer 14

a work area that essentially duplicates an operating computer installation, including backup data, established to begin operations immediately in the event of a disaster

Question 15

cold site

Answer 15

a work area that requires setup of hardware and software before it can begin operations in the event of a disaster

Question 16

hash total

Answer 16

a total that is inherently meaningless, such as the total of all invoice #s, used as a check figure to determine if all data has been entered

Question 17

bit

Answer 17

the most basic form of info consisting of a single amount or a computer switch that can have only one of 2 values, such as 0 versus 1 or on versus off

Question 18

controlled reprocessing

Answer 18

client data being run on the client’s program using the auditor’s computer to determine if the same results are derived

Question 19

parallel simulation

Answer 19

client data being run on an auditor’s program to determine if the same results are derived as when it is run on the client’s program

Question 20

test data (integrated test facility)

Answer 20

simulated data, which includes at least one example of each type of potential error, run on the client’s program to determine if it properly handles erroneous input

Question 21

“auditing around the computer”

Answer 21

a means of testing whether a computer system is functioning properly by examining the data input and the printed output to see if the output reflects appropriate results

Question 22

parity check

Answer 22

in the storage of bytes, one bit will be a “dummy” bit that doesn’t rep any actual info, but is turned on automatically when necessary so that the total # of bits in the on position is an odd # (in an odd-parity computer). when the comp is reading byes of data from a chip or disk drive, a byte with an even # of bits turned on will be known to be functioning properly

Question 23

echo check

Answer 23

involves the data sent from one comp to another being transmitted back to the original one, which will verify that it has received what it sent. if the echoed data doesn’t agree with the transmission, the packet of data is resent

Question 24

field check

Answer 24

application control that validates data as to the correct length and format

Question 25

validity check

Answer 25

application control that compares data with a list of acceptable entries to be sure it matches one of them

Question 26

limit test

Answer 26

application control that compares #s to limits that have been set for acceptability

Question 27

check digits

Answer 27

s with no obvious meaning, such as ID #s, often designed so that one of the digits is determined by a formula applied to the rest of the #. The comp applies the formula when a # is entered to determine if it is an acceptable one. the check digit can either be a # or letter and can be placed in any consistent position in the overall identification

Question 28

extensible business reporting language (XBRL)

Answer 28

XBRL is a specification for publishing financial info in the XML format. It is designed to provide a standard set of XML tags for exchanging accounting info and financial statements between companies and analysts. Instead of treating financial info as a block of text (e.g., standard internet page or Word doc), it provides a computer-readable identifying tag for each individual item of data

Question 29

Wide Area Network

Answer 29

A computer network connecting different remote locations that may range from short distances, such as a floor or building, to extremely long transmissions that encompass a large region or several countries

Question 30

EDI

Answer 30

electronic data interchange