Midterm Flashcards
Transaction
an event that affects or is of interest to the organization and is processed by its information system as a unit of work
Information system
set of formal procedures by which data are
- collected
- processed into information
- distributed to users
Financial Transactions
economic events that affect the assets and equities of the organization, is reflected in its accounts, and is measured in monetary terms
ex. purchasing plane ticket
Nonfinancial Transactions
other events processed by the organizations info system
ex. making an airline reservation
AIS (Accounting information systems)
financial transactions and non financial transactions that DIRECTLY affect the processing of financial transactions
ex. of non financial: involves future revenue but no cash as of yet
MIS (Management Information Systems)
Financial Management Systems Marketing System Distribution SYstems Human Resources Systems non financial transactions that are not normally processed by AIS ex. tracking customer complaints
Transaction Processing System
supports daily business operations
General Ledger/Financial Reporting System
produces financial statements and reports
Management Reporting System
produces special-purpose reports for internal users
Data Sources
financial transactions that enter the information system from either internal or external sources
data
facts which may or may not be processed and have NO direct effect on users actions
ex. report of raw material for personnel manager –>insignificant
information
causes the user to take an action that he or she otherwise would not have taken
ex. report of raw materials given to purchasing agent, agent places order for more inventories if low–>significant
external financial transactions
most common sources of data
Data Collection
Easiest place for fraud to be committed
Valid, Complete, Free from Error, efficient and Relevant
Data Processing
Math Algorithms Summarizing comparing merging transcribing
Database Management
physical repository for financial and non financial data –>Store Retrieve and Delete
Information Generation
process of compiling arranging formatting and presenting information that is useful–> data has been created into info
Database Management
physical repository for financial and non financial data –>Store Retrieve and Delete
Information Generation
process of compiling arranging formatting and presenting information that is useful
Attribute
Characteristics–>AR
ex.Customer Account
Customer Name
Customer Address
Usefulness of Information
CRATS Completeness Relevance Accuracy Timeliness Summarization: aggregated in accordance with the users needs
File
complete set of records –>all ppl in AR
SUb systems of IS
AIS and MIS
System
two or more interrelated components or subsystems that have or serve a common purpose
System Interdependency
Harmonious interaction between subsystems to make the system efficient
Reliability
Value of information determined by_____________
Must have CRATS
System Interdependency
Harmonious interaction between subsystems to make the system efficient
Reliability
Value of information
Accounting independence
duty segregation
Centralized Data Processing
all data processing is performed by one or more large computers housed in a common data center that serves users throughout the organization
master file
Contains account data
ex. Accounts Receivable
General Ledger
Subsidiary Ledger
Transaction File
temporary file containing transactions since last update –> used to update data in a master file
ex. to record transactions last used
Doesnt record everything bc its temporary
Reference File
stores data that are used as standards for processing transactions
ex. use it for referencing
cheat sheet to get formulas, tax tables, constant information
Confirmation
contacts selected customers to determine if the transactions recorded in the accounts actually took place and that customers agree with the recorded balance
Sampling Techniques
examines a representative subset of transactions
Advantages of DDP
- Cost reduction: Types of computers large vs. small
- improve cost control responsibility
Disadvantage DDP
- inefficient use of resources-since your not sharing if you need some info you need to ask or make your own of something that is already done
- destruction of audit trails–paper trails that trace processing of info –> separated cant keep track
- inadequate segregation of duties
- inc. potential for programming errors
- lack of standards: do whatever they want with it
IPU Information Processing Units
reorganizes the IT function into these smaller units
that are distributed to end users (departments) and placed under their controls –NOT SHARED
Have full control over their resources
Distributed data processing
reorganizing the computer services function into small info processing units that are distributed to end users and placed under their control
Expenditure Cycle
incurs expenses in exchange for resources-> by resources pay employees to convert products and physical plant
- Don’t produce→use cash to attain the resources to convert raw materials into finish goods
- Purchasing/Accounts Payable: usually buy on account, purchasing raw materials, pay for physical plant
- Cash Disbursements: when cash is going outward→ cash is going outward towards accounts payable
- Payroll: pay for ppl to make your product
- Fixed Assets: physical plant or building in which you create product
Archive File
contains past transactions for future reference and form an important part of audit trail
actually contains all the past transactions
Digital Audit Trail
Computerized Audit Trail
Flat FIle System
not integrated–> decentralized submit everything several times dont use an integrated system
describes an environment in which individual data files are not related to other files
-end users own the files rather than owning (just like DDP)
Data Redundancy Problems
- data updating: updated separately
- data storage: instead of sharing info data is stored several times for ea. user which incurs several costs
- currency of information: with all separate files with all the separate files it is harder to change everything which will effect status of information then decisions will be made up of old data
- task-data dependency: not current bc not updated right so the ppl they cant obtain additional info as needs change
- data integration: NOT integrated; multiple accounts–>difficult to integrate when have different users
Problems with Flat-File Model
- Data Storage
- Data Updating
- Currency of Information
- Task-Data Dependency
- Data Integration
Database Model
Opposite of Flat-File Model
Database Model
Opposite of Flat-File Model
Master File
Transaction File
Reference File
Archive File
MTRA
Master File
Transaction File
Reference File
Archive File
MTRA
Data Base Management System
integrated part of the system
ERD: entity
source of data
ex. customer
ERD: cardinalities
numeric mapping btw entities (1:1) (1:M) (M:M)
data flow diagram
uses symbols to represent the entities, processes, data flows, and data stores that pertain to a system
Arrow
Direction of data flow
Square
Entity (NOUN)
Rectangle with rounded off sides
process description (VERB)
Data Store Name
where everything is stored into cigarette butt
System Flowcharts
graphical representation of the Physical relationships among key elements of a system
System Flowcharts
Sales Department
Credit Department
Warehouse
Shipping Department
Data Store Name
where everything is stored into cigarette butt
System Flow Chart
Graphical Physical Representation of relationships among key elements of a system
System Flowcharts
Sales Department
Credit Department
Warehouse
Shipping Department
Data Flow Chart
Symbols
System Flow Chart
Graphical Representation of relationships among key elements of a system
Primary Key
unique attribute
