AIS Exam 1 Review

What are the various 'qualities' of information?

**1. Understandability** *2. Relevance* *3. Reliability* 4. Predictive/feedback value 5. Timeliness 6. Validity 7. Accuracy 8. Completeness 9. Verfiability 10. Neutrality *11. Comparability (including consistency)*

What is a systems flowchart? What are they used for? What symbols are used and what do they represent?

A graphical representation of a business process, including information processes (inputs, data-processing, data storage, and outputs), as well as the related operations process (people, equipment, organization, and work activities) It is used to simplify and clarify a narrative to portray a system's logic and implementation. Symbols include the columns to portray each internal/external entity. There are also symbols that portray the manual processes, data store, or keying operation.

What is a system? What is an information system?

A system is a set of interdependent elements that together accomplish specific objectives. A system must have organization, interrelationships, integration, and central objectives. An information system is a man-made system that generally consists of an integrated set of computer-based components and manual components established to collect, store, and manage data and to provide output information to users.

What three roles do accountants have in relation to IS?

Accountants can be designers (make the AIS), users (oversee implementation of AIS), and auditors (assure reliability of AIS).

What are the advantages and disadvantages of ERPs?

Advantages: • Single database • Integrated system (e.g., capability to determine ATP) • Process orientation (versus function orientation) • Standardization of business processes and data, easier to understand across the organization • Faster business processes (e.g., customer fulfillment, product development) Disadvantages: • Centralized control versus decentralized empowerment •Inability to support traditional business processes that may be best practices for that organization

What is an accounting information system?

An Accounting Information System is a specialized subsystem of the IS. The purpose of this separate AIS was to collect, process, and report information related to the financial aspects of business events.

What is an enterprise system (ES)? What are some different types of (or ways of constructing an) ES? What are some decisions companies must make when designing an ES?

An Enterprise System integrates and automates business process functionality and information from all of an organization's functional areas. They make possible the coordinated operation of these functions and provide a central information resource for the organization. Decisions: Who should have access to the information? What security measures can we put in place? What core modules work best (if selecting best of breed)? What add-ons or bolt-ons? Inclusion of a data warehouse?

What is 'best of breed'? What is 'best practices'?

Best of Breed: Combination of modules from various vendors to create an information systems that better meets and organization's needs than a standard ERP system. A type of Enterprise Application Integration system (EAIs). Best practices: The software reflects the vendor's interpretation of the most effective way to perform each business process.

Compare and contrast DFD and flowcharts.

DFD are a graphical representation of a system. This is less descriptive than the latter. A flowchart is a graphical representation of a business process, including information processes as well as the related operations processes.

What is a data warehouse? What is data mining? Why are they used in ERPs?

Data warehouse: Extremely large database for storing data from operational database (& other sources) for additional analysis ('data mining') Data Mining: Exploration, aggregation, and analysis of large quantities of varied data from across the organization. Used to better understand business processes, trends, and opportunities to improve efficiency and effectiveness, as well as to discover anomalies. To improve decision-making capabilities.

What are the two main functions of IS in businesses?

Facilitate operational functions and support management decision making.

What are the rules for preparing a flowchart?

Guideline 1) divide the flowchart into columns. 2) read and prepare from left to right. 3) read and prepare from top to bottom. 4)keep it on one page. 5) include at least one manual process in each column. 6) connect each column with a document at both ends. 7)documents prepared in a computer facility should appear in a new column first. 8)documents prepared in a non-computer facility should be shown in another organizational unit and not within a computer facility. 9) processes outside the central facility column should be shown within the organizational unit. 10) sequential processing steps can be shown as one process or as a sequence of processes. 11)a computer process rectangle is the only way to get data into or out of a computer data storage unit. 12) a manual process is not needed to show the sending of a document. 13) do not use a manual process to file a document.

What are the basic steps or procedures common to preparing graphical documentation, i.e. what do you need to do to be ready to graphically portray a business process?

Have symbols that represent each part of the process and have phrases that portray the connection between each process.

What are horizontal information flows versus vertical information flows?

Horizontal flows relate to specific business events, such as one shipment, or to individual inventory items. This information is narrow in scope, detailed, accurate, and comes largely from within the organization. The data captured at the operations and business event-processing level constitute the foundation for the vertical information flows that service a multilevel management function.

What is information? How is information different than data?

In formation is data presented in a form that is useful in a decision-making activity. Information has value because it reduces uncertainty and increases knowledge about a particular area of concern. Data are facts or figures in raw form. Data represent the measurements or observations of objects and events. To become useful to a decision maker, data must be transformed into information.

What problems are caused by lack of integration?

Inadequate integration of financial systems with logistics, fixed assets, and other systems can cause delays and errors in financial reporting, analysis, and monitoring of operations. Without integrated information systems, organizations have difficulty managing on a day-to- day basis and being successful in the long run. Also without integration, sometimes helping customers would be very untimely as you would have to pass through various people to find the answers you need for your customer.

Why is it useful or helpful to document a business system or business process graphically?

It allows all the users to have access to the information and analyze the system to discuss with other involved parties. To understand the flow of transactions and to identify and analyze the effectiveness of the design of internal controls.

How does the Sarbanes-Oxley Act impact the use of documentation techniques?

It requires publicly listed companies to certify their internal controls (software). To support the prevention or detection of material misstatements.

What are some middleware 'integration technologies' outside ERP systems?

Middleware: a software product that connects two or more separate applications or software modules. (eg) application programming interface (API) and enterprise application integrations (EAI)

What are the main components in an ERP system? For example, what are the core modules?

Software component process flow customer mindset change management

What are structured versus unstructured decisions?

Structured decisions are those for which all three decision phases (intelligence, design, and choice) are relatively routine or repetitive. An unstructured decision is one for which none of the decision phases (intelligence, design, or choice) are routine or repetitive.

What is a legacy system?

Systems that have existed in an organization over a long period of time and developed using an organization's previous computer hardware and software platforms.

What are the different levels of DFDs? What does exploding a DFD mean?

The different levels of DFDs show the detail that each bubble/entity might be involved in. It outlines what exactly happens and shows the parties that can be involved. It can only happen for logical DFDs. Exploding a DFD creates levels of a logical DFD and details the activities that occur in the process.

What is the functional model of an information system (a.k.a. the general AIS model or the basic IS model)?

The functional model describes how an input is processed into an output. This model is cyclical and allows users to input data which is either stored or processed into output data. The output data tells the user more information which can then be processed again.

Summarizing (without memorizing all ten elements or components), what is the broad view of the study of AIS?

The study of AIS considers all business functions and how they are integrated. Involves people, technology, and communication.

What is a three-tier architecture? A client-server architecture?

Three-tier architecture: A Decoupled approach consisting three tiers being the user or presentation tier, the application or business logic tier (middleware), and the data/database tier. Client-server architecture: A network architecture in which each computer or process on the network is either a client or a server. Servers are powerful computers or processes dedicated to managing disk drives (file servers), printers (print servers), or network traffic (network servers ). Clients are PCs or workstations on which users run applications. Clients rely on servers for resources, such as files, devices, and even processing power. Most basic architecture, only one level. Seen most often in legacy ERPs.

What is a value chain? What is value chain analysis?

Value chain: A chain of activities performed by the organization to transform inputs into outputs valued by the customer. Value Chain Analysis: Examination of the value chain of an enterprise to ascertain how much and at which stage value is added to its goods and/or services, and how it can be increased to enhance the product differentiation (competitive advantage). Know the difference between primary and secondary. Recognize the components of a value chain

What are dataflow diagrams? What symbols are used and what do they represent?

a graphical representation of a system; Some symbols include bubble symbols that represent an entity or a process within which incoming data flows are transformed into outgoing data flows. Data flow symbols represent a pathway for data. External entity symbols portray a source or a destination of data outside the system.

2. The correspondence or agreement between the information and the actual events or objects that the information represents is known as a. accuracy b. completeness c. neutrality d. comparability

a. accuracy

4. ____ are facts and figures in raw form. a. data b. information c. objectives d. goals

a. data

3. The sequence of components in the functional model of an information system is a. Output, Input, Processing, Users b. Input, Processing, Output, Users c. Processing, Input, Users, Output d. Users, Processing, Input, Output

b. Input, Processing, Output, Users

3. Supply chain management (SCM) software a. is typically under the control of external partners in the chain. b. helps plan and execute demand planning; acquiring inventory; and manufacturing, distributing, and selling a product. c. cannot be integrated into an overall ERP. d. none of the above

b. helps plan and execute demand planning; acquiring inventory; and manufacturing, distributing, and selling a product.

6. Generally, which of the following is NOT one of the three roles an accountant typically fills in relation to the AIS? a. designer b. programmer c. user d. auditor

b. programmer

The three themes of the text book include all of the following except: a. enterprise systems b. risk assessment c. e-business d. internal control

b. risk assessment

5. The four Ws of capturing data do not include a. Who b. What c. Why d. When

c. Why

2. Which statement is true? a. ERPs are infinitely scalable. b. Performance problems usually stem from technical problems, not business process reengineering. c. The better ERP can handle any problems an organization can have. d. ERP systems can be modified using add-on software.

d. ERP systems can be modified using add-on software.

1. Core applications of an ERP are a. financial accounting b. materials management c. sales and distribution d. all of the above

d. all of the above

4. Enterprise systems support an organization by: a. facilitating the functioning of an organization's operations b. retaining records about business events c. storing data useful for decision making d. all of the above

d. all of the above

5. Which of the following is an unstructured decision? a. how much inventory to reorder b. how fast an assembly line should operate c. when scheduled maintenance should be performed d. which research and development projects should be undertaken

d. which research and development projects should be undertaken

How are physical DFDs different from logical DFDs?

physical represent the nouns of the business flow, it shows the entities involved in the process. logical represents the actions of the business flow, it shows the events that occur during the process.

What is an enterprise resource planning (ERP) system?

software packages that can be used for the core systems necessary to support enterprise systems.