Section 4B Flashcards
EDI heavily asked about
____ refers to practices, strategies, and technologies that businesses use to interact, analyze, forecast, and manage customer relationships, trends, and
CRM is preferably a cloud-based system that stores customer and prospect contact information, accounts, leads, and sales opportunities in MULTIPLE central database, available to all departments in a business, such as sales, customer service, accounting, marketing, and business development.behaviors. T/F
Customer relationship management (CRM)
False - One central database
Customer relationship management (CRM) technologies include the following: (3)
____ The company purchases licenses upfront instead of buying yearly subscriptions from a cloud CRM provider.
_____ Data is stored on an external, remote network that employees can access anytime, anywhere via an Internet
___An open-source CRM system, such as OroCRM, SuiteCRM, or SugarCRM, offers alternatives to the proprietary platforms from Salesforce, Microsoft, and other vendors.
- ON-Premises CRM
- Cloud Based CRM (SaaS)
- Open Source CRM
Cloud-based systems have several concerns that companies must cope with:
____Given that the company does not physically control the storage and maintenance of its data, an entity’s data can be compromised or lost if the cloud provider goes out of business or is acquired by another company.
___The cost of subscription fees for cloud-based CRM software can be more costly over time than for on-premises models.
Data security:
Cost
Which of the following is not a true statement concerning customer relationship management (CRM) systems?
The cost of subscription fees for cloud-based CRM software can be more costly over time than on-premises models.
An entity’s CRM data can be compromised or lost if the cloud provider goes out of business or is acquired by another company.
CRM stores customer and prospect contact information, accounts, leads, and sales opportunities in multiple locations and databases, available to all departments in a business, such as sales and customer service.
CRM refers to practices, strategies, and technologies that businesses use to interact, analyze, forecast, and manage customer relationships, trends, and behaviors.
CRM stores customer and prospect contact information, accounts, leads, and sales opportunities in multiple locations and databases, available to all departments in a business, such as sales and customer service.
Customer relationship management (CRM) is preferably a cloud-based system that stores customer and prospect contact information, accounts, leads, and sales opportunities in one central database (not multiple locations and databases)
Which one of the following would not be included as a reason for a company to use EFT (electronic funds transfer) with an EDI (electronic data interchange) system?
To take advantage of the time lag associated with negotiable instruments
To allow the company to negotiate discounts with EDI vendors based upon prompt payment
To improve its cash management program
To reduce input time and input errors
To take advantage of the time lag associated with negotiable instruments
Time lag is the amount of time it takes a regular check to arrive at the payee, be deposited, and clear through regular banking channels. All of these processes are eliminated with EFT.
There are two principal forms of e-business:
___, where individuals purchase items (books, music, airline tickets) on the Internet
…….A consumer visits a company website, decides what to purchase, places an order, and pays using a credit card. T./F
____, where organizations do business with one another
Business-to-consumer (B2C)
True
Business-to-business (B2B)
Biz-To-Consumer
__ and __ are important in B2C transactions because the parties do not have long-term relationships;
Consumers need confidence that:
a company’s website represents a legitimate electronic “storefront.” T/F
their orders will be filled correctly. T/F
the vendor can and will keep the __they provide private.
Services such as __(developed by the AICPA) have been designed to provide these assurances.
Trust and confidence
True
True
personal information
WebTrust
Biz-2-Biz
Most B2B transactions occur between organizations with established relationships so there is more need for third-party assurance services.
Partial payments on accounts are permitted, which makes accounting for and controlling sales and customer payments more challenging. T/F
false -less need for 3rd party services
True
The traditional manual procurement of direct and indirect resources used in manufacturing has been supplanted, in some cases significantly, by the use of which of the following?
Auctions featuring telephone bidding
Online commerce via B2B
24/7 purchasing
V`irtual transactions
Online Commerce Via B2B
A recent development in the acquisition and sale of manufacturing resources is “business-to-business” (B2B) commerce. B2B uses the Internet and electronic data interchange technology.
A research-based firm in the medical field could use each of the following Internet-based tools for collaboration, except:
an e-mail application.
videoconferencing.
groupware systems.
electronic data interchange.
electronic data interchange.
Electronic data interchange (EDI) is the correct answer because EDI is used to electronically transfer information between and within organization computers. It is communication between computer software applications, not between humans.
Internet Technologies
____ own and maintain portions of the Internet backbone and provide access to the Internet.
___link the intranets of two or more companies.
___ often implemented via software, translates between two or more different protocol families and makes connections between dissimilar networks possible.
An___) uses the Internet to rent software programs to its customers.
Internet service providers (ISPs)
Extranets
A gateway,
application service provider (ASP
A ____is an independent organization that provides hardware and software that allow the various EDI (electronic data interchange) networks to communicate with the ACH (Automated Clearing House) network.
A ____offers specialized hardware, software, and long-distance communications to private networks so they can exchange data. Enhances security
financial value-added network (FVAN)
value-added network (VAN)
___links computers and other devices located close to each other, such as in the same building. This can be configured in 3ways
- __each device is connected to a central server that controls all communications between devices.
2.____, each device is linked to two other devices. To control data flow, a software token
is continually passed around the ring. - __configuration, each device is connected to a main channel called a bus. A software algorithm controls communications between devices
local area network (LAN)
star configuration,
ring configuration
bus
A _____connects sending and receiving devices. A communications network often uses several different channels, as each possesses characteristics that affect the network’s reliability, cost, and security.
Common channels include telephone lines, fiber optic cables, terrestrial microwaves, satellite, and cellular radio frequencies. T/F
A channel’s information carrying capacity is measured by its ___. The greater the ___, the greater the capacity and speed of transmission.
communications channel
True
bandwidth
In a client/server system a ___, referred to as the client, sends a data request to a server. Client/server systems can be configured in two ways:
- _____ system - , where the central database is stored on the server and each client has its own application software.
- ____ system - where a top-tier server stores the central database and a second-tier server uses applications programs to do most of the data processing. All the client has to do is request data from the servers and format data.
desktop computer
Two-tiered
three-tiered
The accounting information system (AIS) is a subset of the management information system (MIS). The AIS is composed of both the human and capital resources within an organization that are responsible for all of the following except:
preparation of financial information.
collection and storage of data about activities and business transactions.
physically safeguarding the organization’s assets.
processing data into information and providing reports.
physically safeguarding the organization’s assets
The accounting information system provides controls to safeguard the organization’s assets but is not responsible for physically safeguarding its assets
The AIS is composed of both the human and capital resources within an organization that are responsible for:
the preparation of financial information and
the information obtained from collecting and processing company transactions.
AIS can perform 3 special functions
- Collect/store data about biz transactions
- Process dat into report for decision making
- Provide adequate control to safeguard org’s assets electronically, not physically
Yup yup
Which of the following can be discovered using a data-mining process?
Data structure
Previously unknown information
Artificial intelligence
Standard query reporting
Previously unknown information
Data-mining technology helps examine large amounts of data to discover previously unknown information and patterns. With data-mining software, companies can sift through all the chaotic and repetitive noise in data, pinpoint what is relevant, use that information to assess likely outcomes, and then accelerate the pace of making informed decisions.
Tech used for Big Data Analyitics
____: Data needs to be high-quality and well-governed before it can be reliably analyzed
____technology helps examine large amounts of data to discover patterns.
____is a free, open-source software framework that stores large amounts of data and rapidly runs applications on clusters of commodity hardware.
_______This technology removes data preparation and analytical processing latencies to test new scenarios and create models,
______technology uses data, statistical algorithms, and machine-learning techniques to identify the likelihood of future outcomes based on historical data
_______, entities can analyze text data from the web, comment fields, books, and other text-based sources to uncover insights not previously identified. Text mining uses machine learning or natural language processing
Data Management
Data Mining
Hadoop
In-memory Analytics
Predictive analytics
text-mining
Which of the following statements regarding machine learning (ML) is false? T/F
ML systems often have low “interpretability,” meaning that humans have difficulty figuring out how the systems reached their decisions.
Machines may have hidden biases, derived from the data provided to train the system.
When the ML system does make an error, diagnosing and correcting exactly what went wrong is generally a simple task.
The algorithms that have driven successful machine learning depend on an approach called deep learning, which uses neural networks.
T
T
F
T
When the ML system does make an error, diagnosing and correcting exactly what went wrong is generally a simple task.
However, when the ML system does make an error, diagnosing and correcting exactly what went wrong can be difficult (not “generally a simple task”)
Machine learning (ML) brings with it certain risks
. ML systems often have low “____,” meaning that humans have difficulty figuring out how the systems reached their decisions.
Machines may have hidden biases, T/F
Neural network systems deal with ___truths rather than ___truths. That makes it almost impossible to guarantee that the system will work in all cases
When the ML system does make an error, diagnosing and correcting exactly what went wrong can be _
ML has deep learning algorithms. Deep-learning algorithms can make better use of much smaller data sets.
A ___is a computer system designed to recognize images and classify them according to elements they contain. It basically works on a system of probability
interpretability
True
Statistical, literal
difficult.
False – much larger data sets
neural network
ML is driving biz changes at 3 levels
- __- identifies potential cancer cells
- ____ - redesigning workflow and plant layouts
- ___– intelligently recommend choices to consumers in a personalized way.
Tasks & occupations
Biz process redesign
Biz models
Which of the following would an auditor ordinarily consider the greatest risk regarding an entity’s use of electronic data interchange (EDI)?
Authorization of EDI transactions
Duplication of EDI transmissions
Improper distribution of EDI transactions
Elimination of paper documents
Improper distribution of EDI transactions
ectronic data interchange (EDI) transmits confidential information to business partners. There is always a risk in data transmission of it being received by unintended recipients, and this would concern an auditor.
Client/server architecture may potentially involve a variety of hardware, systems software, and application software from many vendors. The best way to protect a client/server system from unauthorized access is through:
a combination of application and general access control techniques.
use of a commercially available authentication system.
encryption of all network traffic.
thorough testing and evaluation of remote procedure calls.
combination of application and general access control techniques.
Since there is no “perfect solution,” a combination of application and general access control techniques is the best way to protect a client/server system from unauthorized access.
Authentication systems, such as Kerberos, are only a part of the solution.
Encryption of all network traffic only affects general access control techniques.
Testing and evaluation of remote procedure calls (RPCs) may be a small part of an overall security review.
Which of the following statements is true regarding Transmission Control Protocol and Internet Protocol (TCP/IP)?
Every TCP/IP-supported transmission is an exchange of funds.
TCP/IP networks are limited to large mainframe computers.
Every site connected to a TCP/IP network has a unique address.
The actual physical connections among the various networks are limited to TCP/IP ports.
Every site connected to a TCP/IP network has a unique address.
____control the flow of information sent over the Internet or an internal local area network.
……. Data to be sent is divided into packets and transmitted, and the device receiving the packets reassembles the packets to recreate the original message or data. T/F
Every IP packet consists of two parts: a \_\_\_ and a \_\_\_ ...........The header contains the packet's \_\_ and \_\_ addresses, as well as information about the type of data contained in the body of the packet A router reads the \_\_\_address field in an IP packet header to determine where it is to be sent.
Rules, referred to as an ___, determine which packets are allowed into a system.
A ___router connects an organization’s information system to the Internet.
Routers
true
header and a body.
origin and destination
destination
access control list (ACL)
border
Two important protocols, referred to as ___, govern the process for transmitting information over the Internet.
The___ specifies the procedures for dividing data into packets and reassembling them.
__ specifies the structure of the packets and how to route them to the proper destination.
TCP/IP
Transmission Control Protocol (TCP)
The Internet Protocol (IP)
Multi-cycle threat: Loss or unauthorized disclosure of data. Data can be lost, resulting in:
a. inaccurate external and internal reporting,
b. inaccurate responses to customer and
vendor inquiries,
c. customer or vendor information leaked to
competitors,
d. inventory and fixed assets not being
monitored effectively,
e. manufacturing activities not being performed
efficiently and effectively,
f. morale problems,
g. lawsuits, or
h. the potential demise of the entire
organization.
yeeep
Which of the following allows customers to pay for goods or services from a website while maintaining financial privacy?
Credit card
Site draft
E-cash
Electronic check
E-cash
E-cash currencies, such as bitcoins, are anonymous and allow payment for purchases from websites.
A credit card, a sight draft (one that promises immediate payment to the holder of the draft), and an electronic check (such as created when a debit card is used for a purchase) are not anonymous.
An ___enables continuous monitoring and analysis of transaction processing, including the functioning of processing controls.
embedded audit module
Prepare and review PERFORMANCE reports to assess the efficiency and effectiveness of cycle activities and to look for inefficient or ineffective performance. For example:
- Assess sales force effectiveness
- Assess marketing performance
- Evaluate frequency and size of back-order
- Identify slow-moving products
- Prep A/R aging to monitor collection & estimate Bad debt
- PRep cash budget
- Monitor vendor performance
yeah buddy
Control:
Monitor employee who telecommute to make sure they’re:
- working the hours that they’re paid for t/f
- Not using company resources ___
inappropriately
Which of the following is usually a benefit of using electronic funds transfer for international cash transactions?
Improvement of the audit trail for cash receipts and disbursements
Creation of self-monitoring access controls
Reduction of the frequency of data-entry errors
Off-site storage of source documents for cash transactions
Reduction of the frequency of data-entry errors
Since electronic funds transfer (EFT) allows transactions to take place more directly and with fewer intervening steps, there is less chance of human error.
EFT actually reduces the paper audit trail
FT may actually require stronger access controls
A company has an online order processing system. The company is in the process of determining the dollar amount of loss from user error. The company estimates the probability of occurrence of user error to be 90%, with evenly distributed losses ranging from $1,000 to $30,000. What is the expected annual loss from user error?
$13,950
Errors are be evenly distributed between $1,000 and $30,000.
The average of this range is ($30,000 + $1,000) ÷ 2, or $15,500.
The probability of error is 90%, so the expected value of the annual loss is 90% × $15,500, or $13,950
The three steps in the sales order entry process are
- take customer ___,
- approve ___
- check ___availability.
orders
credit
inventory
The revenue cycle begins when ___are received. The primary objectives of the sales order entry process are to:
accurately and efficiently process ___.
make sure all sales are ___.
make sure the company gets paid for all __sales.
customer orders
customer orders
legitimate
credit
When evaluating internal control of an entity that processes sales transactions on the Internet, an auditor would be most concerned about the:
lack of sales invoice documents as an audit trail.
potential for computer disruptions in recording sales.
inability to establish an integrated test facility.
frequency of archiving and data retention.
potential for computer disruptions in recording sales
____is a general term that describes any effort to help people understand the significance of data by placing it in a visual (pictorial or graphical) context, helping to understand and communicate complex concepts and ideas.
- It can detect pattern/trends/correlations T/F
- Visualization is imperative to advanced ___. Analytics examines large amounts of data.
____visualization allows the user to drill down into the charts and graphics, changing the data and observing the revised output.
Data visualization
True
Analytics
Interactive
Which of the following is likely to be a benefit of electronic data interchange (EDI)?
Increased transmission speed of actual documents
Improved business relationships with trading partners
Decreased liability related to protection of proprietary business data
Decreased requirements for backup and contingency planning
Improved biz relationships w/ trading partners
____is the exchange of documents in standardized electronic form between different entities in an automated manner directly from a computer application in one entity to an application in another
Electronic data interchange (EDI)
A total interruption of processing throughout a distributed information technology system can be minimized through the use of:
exception reporting.
fail-soft protection.
backup and recovery.
data file security.
fail-soft protection
Disaster recovery plans should contain the following:
Recovery Priorities - identify and prioritize hardware/software apps to sustain critical apps
Insurance to replace equipment and compensate biz for interruptions
Assign a plan coordinator. They’re responsible for implementing recovery plan & assigning teams
Backup computers by: Establish agreements w/ compatible facilities so they can use their tech if an emergency happens….sign a contract for a contingent site…Fail-soft distribute processing capacity so other facilities can take over if 1 location is damaged
Periodic testing/revision - test w/ a simulated disaster, constantly improve, and review to make sure revisions reflect computer applications
Complete documentation by having copies of documents stored at different locations &&& 1 copy should be some distance from the system in general.
Yep
Which of the following factors has the greatest impact on the design of an effective management reporting system?
Number of transactions to be processed
Types of decisions to be made
Number of authorized users
Number of regulatory agencies to be satisfied
Types of decisions to be made
