Technology & Analytics Flashcards
Define what the 3 purpose of AIS are
Capture transaction data
Process data into useful information
Make information available for reporting
Identify the role of AIS in the value chain
It consists of primary & support activies. The AIS is owned & used as part of firm infrastructure activies, a set of support activies which include accounting, finance, legal, and general administration.
Define the transaction cycles
Revenue - goods & services exchange for cash or Items
Expenditure- inputs exchanged for cash or payables
Production - goods & services created form inputs
HR/Payroll - Employees hired, paid, terminate
Financing, Cash injected in exchange for equity or liab
PPE - Capital assets acquired, used, disposed
Explain the Revenue cycle
1) Sales order entry
2) Shipping process (booked to GL upon delivery)
3) Billing process
4) Cash Collection
Explain the Expenditure cycle
1) Ordering materials & services
2) Receiving process
3) Approving supplier invoices
4) Cash disbursements
Explain Production cycle
1) Product design
2) Planning & Scheduling
3) Production operations
4) Cost accounting
Explain HR/Payroll Cycle
- One of the most important cycles
1) Input preparation
2) Payroll Processing
3) Cash disbursement
4) Recording
Explain the Financing Cycle
1) Analysis (assess need of assets)
2) Funding (IPO, shares, lenders)
3) Servicing investments
4) Retirement (buying back, shares, bonds)
Explain the PPE Cycle
1) Analysis ( of LT assets and rent vs buy)
2) Proposal (Request for proposal, RFP)
3) Asset life cycle
What does Enterprise Resource Planning (ERP) do
- Overarching environment
- integrates business modules with GL
- Includes or integrates with CRM
- Reporting options
What is Enterprise Performance Management (EPM)
S*Single platform to mange resources
- goal is increase performance
- Integrate panning, execution, reporting
- Link between strategy & executions
What are the benefits of EPM
Makes scenarios easy to model Right information at right time All levels of organization provides performance monitoring improves managerial focus
What are the characteristics of EPM
Data -> Actionable information Provides "singe truth" Links cost drivers w/ results improved accountability/evaluation Connects employee roles with results Variance analysis Reduces reporting labor
Define the objectives of a Data governance program
1) Availability: to anyone who needs them
2) Usability: in a useful format
3) Integrity: Accuracy & validity
4) Security: preservation of integrity
Define the COSO ERM Framework objectives
1) Strategic: development of high-level goals
2) operations: proper mgmt of day to day activies
3) Reporting: Reliability of reporting
4) Compliance: Laws, regulation
8 Components
- Internal Environment: Culture, overall setting, general tone
- Objective setting: Statement of goals
- Event Identification: Recognize manifestation of R&O
- Risk Assessment: Impact of “X” probability
- Risk Response: Avoice, accept, mitigate, transfer/retain
- Control Activites: Polices/procedures to execute responses
- Information/Communication: to relevant parties
- Monitoring: Ongoing Assessment, modifications
