ASI 453 Final Review

Definition of ASP

an organization that provides a contractual service to deploy, host and manage applications for customers remotely from a centralized location

CoBIT stands for

Control Objectives for Information and Related Technology

In Feb 2011, Inc. authorized a $5 billion program to repurchase shares of its own common stock from investors. Which ERP system module is most likely to be involved in the transaction? a. Customer relationship management b. Financial management c. Supply chain management d. Human resource management

b. Financial management

The website www.sco.ca.gov/upd.html is an example of which form of e-business? a. B2C b. G2C c. G2B d. C2C

b. G2C

To calculate cost of goods sold for the income statement, an ERP system would access data from all of the following, except: a. Financial management module b. Human resource management module c. Customer relationship management module d. Supply chain management module

b. Human resource management module

C-I-A Triad

- Confidentiality - Data integrity - Availability

Taxonomy: Incidental- definition and example

- a type of crime where a computer is not required for the crime but is related to the criminal act. The use of a computer simplifies the criminal actions and may make crime more difficult to trace. - Ex: Extortion

Taxonomy: Target- definition and example

- computer crimes where the criminal targets the system or its date with the objective to impact the confidentiality, availability, and/or integrity of data stored on the computer - Ex: DOS attack

Taxonomy: Instrumentality- definition and example

- computer is used to further a criminal end. In crimes targeting the computer, the data are the objective - Ex: Phishing

Taxonomy: Associated- definition and example

- technological growth essentially creates new crime targets and new ways of reaching victims - Ex: Cash larceny

Two methods you can use when moving to E-Business

1. Create from Scratch, or 2. Hire an ASP (application software provider)

Who is the primary stakeholder group and module component in SAP for the following Generic Module Names: 1. Customer relationship management (CRM) 2. Human resource management (HRM) 3. Supply chain management (SCM) 4. Financial management

1. Customers; Sales and Distribution 2. Employees; Human recourses 3. Vendors; Materials management 4. Stockholder; Financial accounting

5 Subcategories of ASP

1. Enterprise ASP's- deliver high-end business applications 2. Local/Regional ASP's- supply wide variety of application services for smaller businesses in a local area 3. Specialist ASPs- provide applications for a specific need, such as Web site services or human resources 4. Vertical Market Asps- provide support to a specific industry such as healthcare 5. Volume Business ASPs- supply general small/medium sized businesses with prepackaged application services in volume

ASP Internal Controls-

1. Establishing a budget for the ASP project 2. Backing up data on a daily basis 3. Providing ongoing training for employees using the ASP 4. Creating firewalls and encryption protocols

Costs of E-Business

1. Financial costs associated with setting up networks 2. Need to develop different, better internal control systems 3. Potential for customer distrust 4. Sever consequences for technology breakdowns

ASP benefits

1. Less costly than purchasing software outright 2. Increased flexibility 3. Potentially improved customer service 4. Role in disaster recovery plans

Benefits of E-Business

1. Marketing: geographic market expansion, hard-to-reach markets, more targeted marketing 2. Reduced operating costs: marketing, telecommunications, transaction processing 3. Steamlined operations 4. Quicker, easier product and service delivery

CoBIT Principles

1. Meeting stakeholder needs 2. Covering the enterprise end-to-end 3. Applying a single integrated framework 4. Enabling a holistic approach 5. Separating governance from management

Selected Conditions for Success in ERP Systems

1. Obtain organizational commitment 2. Communicate strategic goals clearly 3. View ERP as an enterprise-wide venture

IT Controls-

1. Physical controls- ex: guards, locks, fire suppression system 2. Technical controls- ex: biometric access controls, malware protection 3. Administrative controls- ex: password rotation policy, password rules, overall IT security strategy

Selected Failure Causes of ERP Systems

1. Poor top management leadership 2. Unrealistic expectations 3. Inaccurate data in the system 4. Significant technical difficulties

CoBIT Enablers

1. Principles, policies, and frameworks 2. Processes 3. Organizational structures 4. Culture, ethics, and behavior 5. Information 6. Services, infrastructure, and applications 7. People, skills, and competencies

Two main parts of CoBIT

1. Principles- five ideas that form the foundation of strong IT governance and management 2. Enablers- seven tools that match the capabilities of IT tools with users' needs

ASP risks

1. Psychological and behavioral factors 2. Service interruptions 3. Compromised data 4. Inability to pay monthly fees

What are the three primary information processing categories in QB that are consistent with three most common cycles in accounting systems

1. Sales and cash receipts 2. Purchases and cash disbursements 3. Payroll

Carter's Taxonomy:

1. Target 2. Instrumentality 3. Incidental 4. Associated

Why did we do the SUA?

1. To understand what is happening behind the scenes for a accounting system

Characteristics of QB

1. its ability to generate multiple-use information without entering information more than once 2. the incorporation of shortcut methods to enter data 3. the embedding of internal controls in the software to detect and prevent errors.

Difference between QB and SUA

A major difference between a paper system and computerized system is the lack of visibility in much of what takes place in a computerized system because it is electronic

ERP Systems- stands for:

Enterprise Resource Planning Systems

How are ERP Systems organized?

In modules- separate parts of the program aligned with specific functions of/departments in the organization

Two well-known ERP systems:

Oracles and SAP

Definition of ERP Systems

a relational database that provides comprehensive information for making decisions in organizations

Categories of E-Business: a. Buying materials for professional practice from aicpa.org b. Electronic reporting of state unemployment taxes c. Filing personal income taxes with TaxSlayer.com d. Getting medical advice from webMD e. Making appointments with the Department of Motor Vehicles

a. B2B b. G2B c. G2C and B2C d. B2C e. G2C

WebTrust and SysTrust are forms of: a. Internal Control b. E-business c. Systems documentation d. Transaction processing software

a. Internal control

Purpose of ERP Systems

provide comprehensive information for decision making

E-Business Definition

the exchange of goods and services by means of the internet or other computer networks

Which of the following can cause problems in ERP system implementation, internal control design, and enterprise risk management? a. Lack of strong positive signals from top management b. Assuming staff understand project goals and purposes c. Both a and b d. Neither a or b

c. Both a and b

Categories of E-Business: f. Online banking g. Paying traffic citations online h. Purchases from Amazon i. Receiving the online newsletter from the Institute of Management Accountants j. Registration for seminars sponsored by the Association of Certified Fraud Examiners

f. B2C and B2B g. G2C h. B2C i. B2C j. B2C