INFOS 3

Question 1

what are some GL and reporting activities?

Answer 1

1) updating GL
2) posting adj entries / adding o/b
3) prep FS
4) produce mgmt reports

Question 2

general threats to GL accounting?

Answer 2

• inaccurate/invalid GL data which can result in misleading reports / errors in FS delivered to creditors or investors
• unauth disclosure of FS
• loss or destruction of data

Question 3

threats during input?

Answer 3

inadvertently transposing digits when entering journal entries

Question 4

threats during processing?

Answer 4

inaccurate adj entries

Question 5

threats during output?

Answer 5

confidential financial results being accessed by unaut staff

Question 6

threats during updating / posting adjusting entries?

Answer 6

inaccuracy, unauthorized J or adj entries

Question 7

categories of controls needed to address GL errors?

Answer 7

• data entry processing integrity controls
• access controls
• recons and control reports (balances)
• audit trail creation and review

Question 8

controls needed for adjusting journal entries?

Answer 8

• spreadsheet error protection controls, standard adj entries

Question 9

what is a standard adj entries?

Answer 9

a file used for every adj of the same type of account. improves input accuracy and reduces risk of forgetting to make a recurring adj entry = ensures completeness)

Question 10

controls needed for prepping FS?

Answer 10

• processing integrity ctrls
• packaged software
• audits

Question 11

controls needed for preventing loss/unauth disclosure?

Answer 11

• user IDs to control access to GL and enforce proper duty segregation
• control over JE creation
• back up / disaster recovery procedures

Question 12

what is XBRL?

Answer 12

extensive business reporting language

Question 13

how does XBRL affect accountants?

Answer 13

• provides greater transparency
• does not require a change in existing standards
• eliminates the need to reenter data for diff users
• allows them to scrutinize data for int rep purposes

Question 14

threats and controls for production of mgmt reports?

Answer 14

• poorly designed reports and graphs

- resp accounting, balanced scorecard, training on proper graph design

Question 15

how does resp accounting help with performance evaluation?

Answer 15

produces a set of correlated reports that break down overall performance by specific subunits which can most directly control these activities

Question 16

what does a balanced score card help with?

Answer 16

provides a multidimensional perspective of org perf

• reflects on the perspectives of the org (financial, customer, int. operations, innovation, learning)
• shows goals and targets

Question 17

how does a BSC help with strategy?

Answer 17

• allows mgmt to examine the implementation of strategy
• provides a visual rep of strategy through maps
• makes strategy a continual process by providing a new framework

Question 18

BSC goal areas?

Answer 18

• evaluate the extent to which IT meets org strategic needs
• satisfying needs of individual customers
• addressing innovation and learning

Question 19

conditions when designing BSC?

Answer 19

• should help to manage enterprise and IT risk by incorporating risk goals
• should address the problem of ltd focus on perf
• top mgmt, accs, IT pros need to work together to develop BSC. forms multiple cause-and-effect relationships (improvement in one perspective should improve another, but not always = mgmt must re-evaluate)
• measure development in one area may be flawed and affect outcomes