Accounting Information Systems - Chapter 1
Bit
A binary digit which is the smallest unit comprising of only one of two variables. One or Zero
Master File
A file that contains data of a person's permanent information.
General Controls
A form of computer-based internal control which applies to the overall IT accounting information system; they are not restricted to any particular accounting application.
Application Control
A form of computer-based internal control which are used specifically in accounting applications to control inputs, processing, and outputs. They are intended to ensure that inputs and processing are accurate and complete and that outputs are properly distributed, controlled, and Disposed.
Batch Processing
A method to processing transactions in an accounting system. Batch processing collects the similar transactions, for example per day, then processes this information into the accounting software.
Enterprise Risk management
A process implemented by an entity's board of directors, managers, and other personnel to identify and manage risk.
Business Process
A sequence of work steps performed in order to produce a result.
Record
A set of related fields of a single entity. All fields for an employee are considered a record
Transaction file
A set of temporary data which will be processed to update an individual's master file.
Corporate Governance
A system of checks and balances established to maintain integrity of the High corporate managers.
Point of sale system
A system that captures retail sales information for processing by means of a barcode or number being scanned or entered into a computer. These systems are networked with a cash register and the companies Database.
Enterprise Resource Planning Software
A system which is designed to manage all aspects of a company. These aspects are called modules. Each module, whether sales, inventory, purchasing, or human resources are supposed to work seamlessly with each other through this ERP system.
Byte
A unit of storage which comprises 8 bits
Vendor
A vendor a either a person, people, or company which goods or services are purchased from.
Random Access
Random Access locates files using a formula to identify those files. The files are stored randomly on a hard drive in the computer. When a query if performed, the file which has a specific formula is then recalculated to be located.
Real-time Processing
Real-time processing, also known as online-processing records a transaction when it occurs allowing for instantaneous information about the information.
Indexed Sequential access method
Records are stored sequentially but can be accessed randomly by using an index for each record.
IT enablement
Using IT to enhance the efficiency and effectiveness of a business process.
E-payables
Web enabled receipt and payment system
Electronic Invoice presentment and Payment
Web enabled receipt and payment system
Accounting Information System
The accounting information system is a system that captures, records, and processes information relating to types of processes in a business.
Business Process Re-engineering
The changing of a business process to implement a more efficient system using, for example, IT
Supply Chain Management
The concept of monitoring and controlling the supply chain
Operational Database
The database that contains the information for the current fiscal year which is currently and continually updated until the end of the fiscal year. This database is then sent the data warehouse.
Database
The entire set of files are stored in a database. The collection of all files stored on a computer is considered a database.
File
The entire set of records creates a file.
Supply Chain
An entities process, and information flow that involves the movement of materials, funds, and related information between the supplier and purchases to the end user the consumer.
Data Warehouse
An integrated collection of enterprise wide data that includes five to ten years of information
Evaluated Receipt settlement
An invoice-less system that uses the internet to approve payments to vendors. When the goods arrive, the online purchase order must match the goods, then payment is made. Alleviating the need for an invoice.
Field
An item within a record. For example the last name of a person is stored in a field
Online Processing
The opposite of batch processing in that each transaction is recorded instantaneously. Only processing is best used with random access transactions, and is also called real time processing. However sequential access can also be used.
Data Mining
The process of searching within a data ware house for information using a set of defined variables. For example, management may want to gather historical information of the sales to people in South Carolina.
IT governance
The responsibility of top level executives to ensure that IT is handles and used for its purpose.
E-Business
The use of electronics to conduct business transactions between parties. It uses a broad range of electronic components between these parties. From the internet to local networks, E-business utilizes all forms of electronics to conduct business.
Sequential access
This is the method of storing and reading information by a computer. Doing a query is always faster when files or records are stored in a sequential order. Example, to get to file 500, the computer must first read up to file 499.
Information Technology
Computers, equipment and software which support business processes
Internal controls
Is a business process implemented into an accounting system to safeguard the company's assets and to check the reliability of the company's data
LAN
Local Area Network is a network of computers typically set up in a small or localized area. Ideally between computers in an organization.
Automated Matching in purchasing
Software and hardware used by an employee to enter an invoice which is then matched to a corresponding purchase order. When a customer is billed and invoiced, and the funds returned to the company, an employee enters the data in the system which then matches the information clearing the original invoice.
