EXAM 1 PART 5
what are 2 ways that the growth of the internet has profoundly affected the way value chains are performed?
"(1) allows companies to cut costs, which impacts strategy and strategic position (2) b/c it is available to everyone, intense price competition can result. The outcome may be that many companies shift from low-cost to product-differentiation strategies.
"post" is aka
"copy"
Assume X Co. has a payroll of $5,000 per week and that payday is on Friday. December 31, 2016 falls on a Wednesday. (1) What is the ADJ entry for accrued wages on 12/31? (2) If the company DOES NOT perform reversing entries, the entry on Friday (payday) would be what? (3) If the company DOES perform reversing entries, what is the entry on Thursday 1/1? (4) If the reversing entry is made, the entry on Friday (payday) would be what?"
(1) DR. S&W Exp $3,000 CR. S&W Payable $3,000 (2) DR. S&W Exp $2,000, Dr. S&W Payable $3,000, CR. Cash $5,000 (3) Reversing entry: DR. S&W Payable $3,000, CR. S&W Exp $3,000 (4) DR. S&W Exp $5,000, CR. Cash $5,000
--In file-oriented systems, programmers must know the physical location and layout of records used by a program. When data is used from several files, this process becomes complex. --Database systems overcome this problem by separating the storage and use of data elements. Two separate views of the data are provided: WHAT ARE THEY?
(1) a logical (conceptual) view (2) a physical view
(3) requirements of SAS 99
(1) communication among audit team (2) inquiries of management (3) analytical procedures
what are the (3) types of flowcharts?
(1) document (2) system (3) program
what are DFDs used for? (2)
(1) document existing systems (2) plan & design new systems
the users of accounting info fall into what 2 broad groups?
(1) external and (2) internal
what are the (3) steps in building a REA model?
(1) identify relevant facts (2) identify resources & agents (3) determine the cardinalities of the relationships
what are (4) types of flowcharting symbols?
(1) input/output (2) processing (3) storage (4) flow & miscellaneous
Frauds involving financial reporting are: (1) usually larger than frauds involving X, (2) usually involve X, and (3) do/do not directly involve theft of company assets
(1) misappropriation of assets (2) top management (3) DO NOT
what are 4 types of documentation tools?
(1) narratives (written descriptions), (2) flowcharts, (3) diagrams, (4) other written material (i.e. questionnaires)
what are the characteristics of most systems? (7)
(1) objectives, (2) environment, (3) input-process-output, (4) feedback, (5) constraints/controls, (6) subsystems, (7) interface
the value chain includes what 2 types of activities?
(1) primary (line) and (2) support (staff)
what are 2 examples of how organizaitons can prevent fraud w/their employees?
(1) reporting programs (2) enforcement of mandatory vacations
what are the 3 information levels in an organization (pyramid)
(1) strategic/unstructured (2) management control/semi-structured (3) operational/structured
what may flow & miscellaneous symbols indicate? (4)
(1) the flow of data and goods (2) the beginning or end of the flowchart (3) the location of a decision (4) an explanatory note
what are (3) actions that can be taken to improve the accuracy & efficiency of data input?
(1) turnaround documents (2) well-designed source documents & data entry screens (3) using pre-numbered documents or having the system automatically assign sequential #s to transactions
• No universal standard exists for presenting information about cardinalities in REA diagrams. The text adopts the graphical "(a)" notation style for representing cardinality information.
(a) "crow's feet"
At a minimum, every REA model must include the (a) events that represent the give-to-get" economic exchange performed in that transaction cycle. The (b) event reduces one of the organization's resources. The (c) event increases a resource.
(a) 2 (b) give (c) get
Every process in a data flow diagram has (a) how many identifying characteristics? (b) what are they?
(a) 2, (b) number and name
In drawing an REA diagram for an individual transaction cycle, it is useful to divide the paper into (a) columns, one for each type of entity. (b) What should each of the columns be used for?
(a) 3 (b) left for resources, center for events, right for agents
DFDs consist of (a) how many symbols? (b) what are they?
(a) 4 (b) data sources & destinations, data flows, processes, data stores
(a) what are the (2) most common types of documentation? (b) are they both tested on professional exams?
(a) DFDs and flowcharts, (b) YES
to process data into information, computers use a (a) language. this language consists of (b) digits/what are they?. these digits represent (c). each digit is a (d) digit, or bit for short.
(a) binary (b) 2 -- they are 0 & 1 (c) 'on and off' electrical switches for the 1 and the 0. (d) 0 and 1 is a binary digit
REA MODEL : step 2 - identify resources & agents that participate in each event (1) there will always be at least (a) internal agent (ex - employee) (2) in most cases, there will also be an (b) agent (e.g., customer or supplier) who participates.
(a) one (b) external
by consolidating data, a company can (a) avoid what problem? How? (b) what is an example of the problem?
(a) problem of having multiple versions of the same thing. Eliminating data redudancy & allowing areas w/in organization to share info. (b) example - storing data about a customer in 2 silos & not knowing which customer data is correct
In an E-R diagram, entities are often depicted as (a). However, there are no industry standards for other aspects of these diagrams. Generally, (b) are drawn to represent relationships between entities.
(a) rectangles (b) lines
process names should always be (a) phrases. They should start with an (b) like approve, record, calculate, or check
(a) verb (b) action word
*read* It may appear that a number of traditional AIS elements are missing, e.g., journals, ledgers, and accounts receivable balances. The information is simply present in a different format. Journals, ledgers, and financial statements can be created through appropriate queries.
*read*
*read* lets assume you are going to build a database (think of a huge table)—its not a normalized database b/c its just a bunch of information; if you take that data & break out tables—and can struct tables from that data and link w/primary & foreign keys—now you have normalized it;
*read*
how many digits/bits combined to create 1 byte?
8
what is the treatment of AP in REA modeling?
AP would also not be represented on and REA diagram. Accounts payable is simply the difference between a company's purchases and their cash disbursements for those purchases at a defined point in time. Since the payable is an artifact of reporting time periods, it is not a resource, event, nor an agent. Therefore, it will not appear on an REA diagram.
what is the treatment of AR in REA modeling??
AR is merely the difference between amount that a company has sold to a customer and the amount the customer has paid for those sales, and, therefore need not be explicitly modeled as a resource.
REQUIREMENTS OF SAS 99: Analytical Procedures---Explain.
Because of the high occurrence of fraud in revenue accounts, auditors must perform analytical procedures on revenue accounts. Run relationships between different numbers relating to the FS
You have a client which is a company in a very competitive industry and recently the overall industry sales have been flat or only slightly growing. Their competitors have been discounting, so the company's sales had been declining slightly. This past quarter, sales did seem to start to recover, yet at the most recent inventory count, there seemed to be somewhat more inventory on hand than might have been expected given the sales and purchasing activity in the quarter. That could be because the purchasing manager, Gary, had taken advantage of some vendor discounts to stock up on the company's most popular products. Of the following fraud tips which were received by the company's fraud hotline, which would most likely be a legitimate tip? A. The reason that sales have been declining is because John has been stealing the inventory, selling it to regular customers, and keeping the money. B. Someone in the warehouse has been taking boxes of products out to their car on some days when they leave for lunch. C. Robert has been recording sales that haven't actually been agreed to by the customers, for the commissions, and the inventory never leaves the building. D. I saw Gary getting an envelope full of money the other night at a bar, and I think he's getting kickbacks for increasing the company's orders with a vendor so they could get rid of some slow-moving product.
C. Robert has been recording sales that haven't actually been agreed to by the customers, for the commissions, and the inventory never leaves the building.
You are working with a company that has recently established a fraud hotline where employees, vendors, customers, and others can call in to report questionable behavior. The company is still finalizing their procedures for handling the tips, and they reported that a significant percentage of the calls have been left anonymously. They have asked if the fact that a caller wanted to remain anonymous should be a major consideration in assessing the reliability of the tip. You should tell them: A. Anonymous tips should be considered less reliable unless they're accompanied by indisputable evidence. B. Anonymous tips tend to be more vague than others and can be easily misused to spread false information, so they are less credible overall. C. Anonymous tips have generally about the same level of reliability as tips where the caller leaves his/her name. D. Anonymous tips often turn out to be the most useful since the caller feels free to provide information without being identified as the source.
D. Anonymous tips often turn out to be the most useful since the caller feels free to provide information without being identified as the source.
handles the link between the physical and logical views of the data. This interface allows the user to access, query, and update data without reference to how or where it is physically stored.
DBMS
translates users' logical views into instructions as to which data should be retrieved from the database. The operating system translates DBMS requests into instructions to physically retrieve data from various disks.
DBMS
X use fewer symbols than either document or system flowcharts & do not require columns (like document flowcharts)
DFDs
what is 1 advantage of a DFD over a flowchart?
DFDs specify agents (individuals performing the processes).
X diagrams are only loosely standardized. As a result, some books use different symbols.
Entity-relationship (ER)
X is a competitive asset for any business, and by capturing it in software, the business can continue to use it when the expert is no longer available.
Expertise
true or false - calibration is part of the fraud triangle
FALSE
true or false - lapping is a scheme involving accounts payable that involves subsequent payments being misapplied to cover theft of prior payments
FALSE - RECEIVABLE
true or false - a collection of bytes make up a record
FALSE - field
where was SAP created and what does it stand for?
Germany; "Systems Applications Products"
REQUIREMENTS OF SAS 99: Inquiries of Management---Explain.
Have to do every year—for every set of FS—doesn't matter if its been your client for many years and you've done their audit for many years—has to be done.
Auditors must inquire whether management has knowledge of any fraud or suspected fraud within the company. Example of a question they could ask?
If you DID have fraud--where would it likely be? (identify weak points)
How is it helpful to organize flowcharts? What is an example?
In columns that depict areas of responsibility For example - a purchasing process might have a column for dept managers, purchasing agents, & vendors
So, for example, in binary language, the letter X is represented as 01001011. This is eight bits, or one byte.
K
What is this an example of? have 3 customers (A, B, C): customer A owes you $600, B owes you $400, C owes you $200. Customer A sends you a payment of $100. If you're a fraudster—you steal the $100—problem is that Customer A knows that you've paid the $100—so then you take B's payment of $100 and apply it to A—and it keeps going on with all customers
LAPPING
an intensly competitive company w/a deep base of technology & high-quality technical staff; developed some of its ERP products in-house & has expanded its ERP market share with its acquisition of PeopleSoft
Oracle
how are database systems structured??
Program-->DBMS-->Database
REA MODEL - (a) what are its 3 distinct categories that its named for? (b) define each of the 3 distinct categories
R - resources : the organization acquires and uses; those things that have economic value to the organization (cash, inventory) E - events : (business activities) in which the organization engages (sales, purchases) A - agents : those who participate in the events (people, organizations)
REQUIREMENTS OF SAS 99: Communication Among Audit Team---Explain.
Requires the audit team to conduct discussions and to "brainstorm" ideas regarding the perpetration and concealment of fraud (if you don't do this and there is fraud found out then you are most likely to lose if sued)
X also requires auditors to inquire of the audit committee about its views of the risks of fraud.
SAS 99
software that helps and executes steps in the supply chain
SCM software
TRUE OR FALSE - Thousands of transactions can occur within any of these cycles, but there are relatively few types of transactions in a cycle.
TRUE
TRUE OR FALSE - you can be an officer AND serve on the BOD
TRUE
TRUE or FALSE - AIS perform the transformation of converting data into useful info whether they are manual systems or thoroughly computerized
TRUE
TRUE or FALSE - In a relational database, separate tables would be created to store information about each distinct entity.
TRUE
TRUE or FALSE - Most companies' AIS systems are computerized (vs. manual)
TRUE
true or false - REA modeling is used to plan and build databases
TRUE
true or false - a decision support system (DSS) is tailored to the strategic information needs of top-level management
TRUE
true or false - a record in a relational database is a rwo
TRUE
true or false - almost no organization develops its own DBMS. instead, companies license DBMS products from vendors such as IBM, Microsoft, Oracle, and others. Popular DBMS products are DB2 from IBM, Access, and SQL Server from Microsoft & Oracle Database from the Oracle Corporation
TRUE
true or false - an e/r diagram is a graphical technique for portraying a database schema
TRUE
true or false - billing a customer would be an example of an operational control decision
TRUE
true or false - data diddling involves altering or damaging a company's data files; or copying, using, or searching the data files without authorization
TRUE
true or false - database systems were developed to address the proliferation of master files
TRUE
true or false - documents gathered at the end of the transxn processing activities are known as operational documents
TRUE
true or false - if a company signs a contract to perform a service for $1,000 & payment is made at the end of the job, the adjusting entry would contain a debit to a receivable
TRUE
true or false - in an IT environment, the data control group manages the hard copy files of the organization
TRUE
true or false - in the data hierarchy, a byte is equivalent to a character
TRUE
true or false - normalization is the process of creating a well-structured database
TRUE
true or false - the DML is used to change the database content
TRUE
true or false -Each letter of the alphabet, each number, and each special character consists of a unique combination of eight bits, or a string of eight 0s and 1s.
TRUE
true or false- a steering committee consists of high-level members of user functions such as manufacturing & marketing, as well as the head of the information system function & several of his/her staff
TRUE
true or false- an audit trail is improved by using posting references
TRUE
The average damage of a bank robbery is several thousand dollars, and the probability of getting caught is 85%. The average damage when a financial institution is defrauded through use of IT is several hundreds of thousands of dollars, and the probability of getting caught is less than 1%. WHY?
The answer is twofold. Much more money is kept electronically than in a bank teller's counter or even a bank's vault, and electronic fraudsters rarely leave identifying traces
Principles of good flowcharting: Documents involved should have..
a clear origin & destination. also, the progress of the document should be very clear in the flowchart
what do data stores represent?
a temporary or permanent repository of data
In preparing a DFD, when data are transformed through a process, the symbol used should be a) a circle b) an arrow c) a square d) 2 horizontal lines
a) a circle
"In a payroll processing DFD, the ""prepare reports"" activity will be represented by __________, the ""employee payroll file"" will be represented by __________, and the ""bank"" will be represented by __________. a) a circle; two horizontal lines; a square b) a circle; two horizontal lines; two horizontal lines c) a rectangle; a square; a circle d) a square; two horizontal lines; a circle
a) a circle; two horizontal lines; a square
In the data flow diagram of the customer payment process, ""Customer"" will appear in a) a square b) a circle c) 2 horizontal lines d) none of the above
a) a square
In a DFD, a square box represents a) data sources & destinations b) data flows c) transformation processes d) data stores
a) data sources & destinations
an upside down triangle with an A *symbol* a) most likely came from what type of flowchart/diagram? b) symbol w/the letter A represents what?
a) document flowchart b) arrangement of a file
Principles of good flowcharting a) should have plenty of X space and not overcrowded b) should have a X
a) white b) title
own, elect BOD a. stockholders b. BOD c. officers
a. stockholders
a collection of resources, such as people and equipment, designed to transform financial and other data into information.
accounting information systems
each subsystem is designed to...
achieve 1 or more organizational goals
software that collects consumer surfing & purchasing data, sends to advertising companies, or causes banner ads to pop-up as the internet is surfed
adware
what is an ERP?
an integrated computer system that integrates various info systems under one software package & one database (*advantage*)
in a flowchart, a(n) X indicates a process flow
arrow
symbol for data flows in a DFD
arrow
fraud prevention - organizations should have a policy for educating managers, executives & employees about fraud? How can this be done?
as a part of employee orientation, or it can be accomplished through training programs and other intercompany communication methods.
each column in a relation is called a(n)
attribute
responsible for hiring, terminating, and setting a fee for external auditors
audit committee
posting reference helps you cross reference things and thus follow the transactions—shown on a JE in order for us to have an....
audit trail
In the data flow diagram of the customer payment process, ""update receivables"" will appear in a) a square b) a circle c) 2 horizontal lines d) none of the above
b) a circle
In the data flow diagram of the customer payment process, ""Customer payment"" will appear above or in a) a square b) a circle c) 2 horizontal lines d) an arrow
b) a circle (customer is in process of paying)
"The graphic description of the flow of data within an organization is called a a) systems flowchart b) data flow diagram c) context diagram d) document flowchart
b) data flow diagram
an internal auditor wants to flowchart a file of (hardcopy) purchase orders. Which would be the best symbol to use for the file? A) on-line storage symbol b) off-line storage symbol c) terminal symbol d) auxiliary operation symbol
b) off-line storage symbol
Flowcharts are created using a standard set of symbols. These symbols can be divided into four basic categories. A square denotes an auxiliary operation and is found in which flowchart symbol category? a) input/output b) processing c) storage d) flow and maintenance
b) processing
when information levels within an organization are viewed as a pyramid, strategic information is used primarily by: a) lower-level management b) top-level management c) middle management d) lower-level and middle management
b) top-level management
an auditor's flowchart of a client's accounting system is a diagrammatic representation that depicts the auditor's a) program for tests of controls b) understanding of the system c) understanding of the types of irregularities that are probable, given the present system d) documentation of the study & evaluation of the system
b) understanding of the system
control a. stockholders b. BOD c. officers
b. BOD
What symbol? To indicate the general ledger file
basic input/output
What symbol? Computer calculates employees' pay
basic process
What symbol? To indicate that computer software will calculate the employees' gross pay deductions & net pay
basic process
what type of coding? Assets: 1000-1999, Liabilities: 2000-2999, Owners' Equity: 3000-3999
block
how does an ERP system tackle the silo problem?
by providing layers of software that connect information systems together
vicki prepared a flowchart showing the computer's instruction for calculating payroll. her flowchart would best be described as a X flowchart a) systems b) document c) program d) hardware
c) program
When designing either a DFD or a flowchart, a good rule to follow is a) to proceed from left to right. b) to proceed from top to bottom. c) to proceed from left to right and top to bottom. d) to identify exception procedures by using a rectangle.
c) to proceed from left to right and top to bottom.
In a DFD, a circle represents a) data sources and destinations b) the direction of data flows c) transformation processes d) data stores
c) transformation processes
appoint officers, run a. stockholders b. BOD c. officers
c. officers
executive in charge of the IS function; in most modern organizations, works w/the CEO and CFO along w/other senior executives, therefore actively participating in the organization's strategic planning process
chief information officer (CIO)
in a flowchart, a rectangle indicates a(n)
computer process
What symbol? Data flow contained on same page
connector
What symbol? To indicate that a document is being sent to another department
connector
The highest level of DFD is called a X diagram, which provides a summary-level view of the system
context
sometimes in a ledger account you need more detail (ex - AR—you want to know who the customers are); breaking down a GL account
control accounts/subsidiary ledgers
executive over the accounting function
controller
early enterprise resource planning programs were...
customized products where companies wrote their own programs to support their own processes
Which of the following is not a true statement? a) Documentation tools save an organization both time and money. b) Documentation tools are used extensively in the systems development process. c) Data flow diagrams and flowcharts are the two most frequently used systems development documentation tools. d) Data flow diagrams and flowcharts are difficult to prepare and revise using software packages.
d) Data flow diagrams and flowcharts are difficult to prepare and revise using software packages.
in creating a DFD for a course registration process, which is most likely to be an external entity? a) parents b) student c) registration system d) bank
d) bank
In a DFD, lines that are horizontal and parallel to each other represent a) data sources & destinations b) data flows c) transformation processes d) data stores
d) data stores
flowcharting as a prelude to internal control evaluation provides what advantage over the use of narrative descriptions? a) ease of preparation b) comprehensive coverage of controls c) cost effective d) ease in following information flow
d) ease in following information flow
in a flowchart, the symbol which could be used to indicate the computation of gross pay is the a) connector symbol b) terminal symbol c) input/output symbol d) process symbol
d) process symbol
Document flowcharts would not be used to represent: a. the flow of information when ordering office supplies b. the flow of information when hiring new employees c. the flow of information when creating orders for new magazine subscriptions d. the logic in performing payroll processing
d. the logic in performing payroll processing (LOGIC - program flow chart)
What do enterprise resource planning (ERP) systems rely on to process and administer the ERP database?
data base management systems (DBMS)
accountants use X to depict the physical flows of data thru an AIS (like document flowcharts), or the logical flow of data thru an AIS (like system flowcharts)
data flow diagrams (DFDs)
an organized collection of facts and information, typically consisting of two or more related data files.
database
centralized place to store info
database
X are made up of tables—in a X, we are creating tables, finding relationships, linking them, and answering questions (getting info you need)
database(s)
Most new AIS systems implement X. Virtually all mainframe computer sites use database technology.
databases
What symbol? To indicate that the bank loan officer approves or does not approve of an increase in the customer's line of credit
decision
what is cardinality?
describes the nature of the relationship between two entities. It indicates how many instances of one entity can be linked to a specific instance of another entity.
What symbol? The production report is shown on a computer video monitor
display
What symbol? Employee paychecks
document
what is required to retrieve data stored in a relational database?
each row (record) must have 1 unique identifier
consists of combinations of SCM and CRM systems that are interfaced. They help plan and optimize resources and they are also used to run and monitor daily operations.
enterprise resource planning (ERP) systems
the problem of information silos can be solved by....
enterprise resource planning (ERP) systems
what is the double entry system (bookkeeping) problem?
every time there is a DR there is a CR which means it is duplicating. Advantage to database is that it does NOT duplicate. A good system should NOT duplicate.
A system that gives a computer the ability to make suggestions and function like an expert in a particular field
expert systems (ES)
Gets a group of experts, take the knowledge & put into computer, ask computer the questions and based on the knowledge put in, it will generate answers & solutions
expert systems (ES)
primarily use information that is either mandatory (e.g., required by government) or essential (needed to conduct business).
external users
what type of users are: competitors, labor unions, public at large
external users
what type of users are: stockholders, investors, creditors/credit rating agencies, government agencies, customers, vendors
external users
true or false - CRM systems are designed to integrate all aspects of a company's operations
false - ERP
true or false - in a program flowchart, a rectangle represents a manual operation
false - computer
true or false - a boundary would indicate the presence of at least 2 systems
false - interface
true or false - in a program flowchart, a parallelogram represents a computer operation
false - journal/ledger
true or false - every system has subsystems
false - most but not all
true or false - making entries in the general journal would be an example of a structured decision
false - semi/structured
true or false - an AP system is an example of an unstructured system
false - structured
true or false- transportation costs for shipping products to retail stores would be classifed as marketing in the value chain
false- outbound logistics
true or false- the value chain is comprosed of primary & secondary activities
false- primary & SUPPORT
why is there a need to subdivide a DFD?
few systems can be fully diagrammed on 1 sheet of paper--and users have needs for differing levels of detail
in a database table, an attribute is a X
field
what makes up records (i.e. w/in an invoice--it would be a customer name or amount)
field
group of records (if you have 100 invoices, your X would be those 100 invoices)
file
interest expense is part of the X cycle
financing
why must controller & treasurer always be separate (i.e. no person can be both?)
for internal control purposes
the primary key of a table is copied into a related table. The copied field is called a X key.
foreign
A third-party hotline is staffed by an outside company that typically provides services of this type as a specialty.
fraud prevention
what journal do we close in?
general journal
what type of coding? break down the blocks (i.e. CA: 1000-1500, LTA: 1600-1999); grouping the numbers w/in the blocks; used by most acct systems
group codes
With X, the data needed by one process are stored in an information system designed and used in another process.
information silos
a shared boundary between 2 systems or subsystems is known as a (an)...
interface
b/c information silos exist in isolation from one another, they create...
islands of automation that can reduce the performance of processes make process integration difficult
what is an information silo?
isolated data stored in separated info systems
a form of X is when someone writes a check knowing that they don't have the proper amount in their bank account at the moment they write the check
kiting
tables in a relational system must be
linked together
software that sits idle until something triggers it, destroying programs, data, or both
logic bomb
relational database: this model only describes how the data appear -- this is called the X view
logical (conceptual)
What symbol? Employee pay records stored on-line
magnetic disk
budgeting would be an example of a X decision
management control
What symbol? To indicate that a factory employees uses a workstation on the factory floor to key in a code that indicates that the production run has been completed
manual input
What symbol? Using a computer to enter payment data
manual input
What symbol? The AR clerk compares a batch total to a transaction report
manual process
What symbol? To indicate that the treasurer will sign the payroll checks
manual process
describes the nature of the relationship between two entities. It indicates how many instances of one entity can be linked to a specific instance of another entity.
maximum cardinality
what type of coding? ex- code A/R - you would code it ACCREC, petty cashPCASH; professor has never seen used in any company
mnemonic codes
are context diagrams subdivided??
no
The process of taking a database, creating tables from data & then linking those tables with primary & foreign keys
normalization
What symbol? A file of paper invoice copies
off-line storage
What symbol? To indicate a file of paper documents
off-line storage
What symbol? Data flow continued on next page
off-page connector
What symbol? To indicate that a check is being mailed outside the company
off-page connector
What symbol? To indicate files stored on the hard disk
on-line storage
what do data sources & destinations represent?
organizations or individuals that send or receive data used or produced by the system
intercepting internet transmissions
packet sniffing
getting info by creating emails that look like they came from a legitimate source
phishing
flowcharts place more emphasis on the X characteristics of the system
physical
latching onto a legitimate user
piggybacking
point where you actually originate a sale (POS systems - sometimes a cash register)
point of sale
a foreign key in a table is liked to another table that has the same key as its X key.
primary
especially as an auditor—we are supposed to exhibit ?????—you don't take the client's word—you question EVERYTHING—doesn't mean to be argumentative/accuse, but you don't just go by what the client says
professional skepticism
IT Department Personnel: construct plans for developing the necessary programs that produce these outputs
systems analyst
what type of flowchart tends to depict the MOST detailed level of system flowcharts b/c they outline the logical sequence for a particular application program?
program flowcharts
what type of flowcharts are more used by programmers and system analysts than by accountants & auditors??
program flowcharts
usually represents a document (i.e. invoice, PO)
record
file that the system refers to for info (ex - you have a sales tax table, computer refers to the table to show how much sales tax you should charge)
reference file
most new DBMS are called
relational databases
interest income is part of the X cycle
revenue
budgeting would be an example of X decision-making
semi-structured
what type of coding? Sequential, used w/check numbers, not generally used in accounting systems
sequence codes
symbol that would be used in a flowchart to represent employee time cards sent by department managers to the payroll department?
since time cards are documents
why do we close the books?
some accounts you DO NOT want to carry over. Its not helpful to know what a company's revenue has been for 10 years (need to close rev/exp yearly); but if I leave a cash balance of $100,000 in the safe on 12/31, should be the same on 1/3--that's why we don't close BS accounts
In today's digital environment, the IS function has become increasingly X within organizations.
strategic
what is an audit committee?
sub-committee of the BOD required by public companies. Most companies have the. They are a liason to intenral auditors & are also under officers.
if there is a control account--what has to be attached to it somewhere
subsidiary ledger
special software used to bypass system controls
superzapping
The linking of these separate value chains creates a larger system known as a
supply chain
helps determine what supplies are required for the value chain
supply chain management (SCM)
processes and procedures used to ensure delivery of goods and services to customers at the lowest cost while providing the highest value
supply chain management (SCM)
IT Department Personnel: Work with programmers to make sure that the appropriate programs are purchased, modified from existing programs, or developed.
systems analyst
IT Department Personnel: help users determine what outputs they need from the system
systems analyst
relations =
table
What symbol? Customers send checks to the company
terminal
What symbol? To indicate the beginning or the end of the flowchart
terminal
a rounded rectangle on a flowchart indicates a(n)
terminal symbol
changes in subsystems cannot be made w/o considering what effect?
the effect on other subsystems and on the system as a whole
what do data flows represent?
the flow of data between sources and destinations, processes, and data stores
what does the DFD focus on?
the logical flow of data
what do input/output symbols indicate?
the type of device or media that provides inputs to or records output from a process
what do processing symbols indicate?
the type of device used to process the data or whether the data is processed manually
what do storage symbols indicate?
the type of device used to store data while the system is not using it
what are the 3 aspects of fraud (most fraud involves what 3 things)?
theft, conversion, concealment (on bottom of triangle)
what is 1 disadvantage of a DFD?
there is no symbol for decisions
why were database systems developed?
to address problems associated w/the traditional
what is the purpose of an ES?
to emulate the expertise of a human expert
why are DFDS subdivided into successively lower levels?
to provide increasing amounts of detail
Description - was used for many years; explanation - lets say you have 3 programs: A, B, C—each one of the programs has its own data file—that is a file system
traditional approach for data file organization
this was a problem w/ what?? Could have the same customer in 2 different files---if you update one program and don't remember to do the other one—you'll have DATA CONFLICT; could also end up duplicating customers—which makes it inefficient
traditional approach for data file organization
entering a system using a backdoor to bypass system controls
trap door
executive over custody of money (financing function)
treasurer
true or false - delivering products to customers would be a primary activity in the value chain
true - outbound logistics
in relational databases, how are tables related to each other?
using common fields in 2 different tables (these are referred to as the primary key & the foreign key)
SAS 99 - meeting have to be...
very well documented
how does an ERP system solve the silo problem?
w/a centralized approach. An ERP system creates a single database.
