Midterm Exam WGU D337 Objective Assessment (New 2026/ 2027) Internet of Things (IoT) and Infrastructure Quiz Bank| Questions and Verified Answers| 100% Correct| A Grade

Midterm Exam WGU D337 Objective Assessment (New 2026/ 2027) Internet of Things (IoT) and Infrastructure Quiz Bank| Questions and Verified Answers| 100% Correct| A Grade Q. what does IT do? ANSWERS maintain/IT Operations Improve Q. Functions of IT: describe maintainence/IT Operations all "standard" management tasks (ex: people, vendor, budgets) ANSWERS maintain the systems "keep the lights on" doesn't change organization value Q. Functions of IT: does maintaining/IT operations change organizational value? ANSWERS no! Q. Functions of IT: describe improvements people who "improve" IT add value ANSWERS - can go very well or very poorly governance programs and projects Q. Functions of IT: improvements -- governance strategy and planning ANSWERS architecture portfolio management Q. Functions of IT: improvements -- programs and projects two different things ANSWERS new application developments/pre-written solution delivery small enhancements (be careful these can add up_ Q. how do we get new software systems (2 ways)? ANSWERS build or buy Q. what are the 4 software acquisition types? ANSWERS Buy -- on-premise Buy -- cloud Build -- in-source Build -- out-source Q. 4 software acquisition types: buy -- on-premise commercial off-the-shelf (COTS) ANSWERS you own the software on our platform, on our property Q. 4 software acquisition types: buy -- cloud ANSWERS software as a service (SAAS) renting/leasing it Q. 4 software acquisition types: build -- in-source ANSWERS possibly using consultants Q. 4 software acquisition types: build -- out-source ANSWERS don't have notes on it Q. define systems ANSWERS inputs, processes (i.e. calculates, computes, transforms), then outputs must have input data, perform some sort of processing on the input data, and then have output data Q. what are the components of systems? ANSWERS inputs processes outputs storage control Q. systems: inputs ANSWERS transaction data company info (account names, etc.) inputs are all journal entries Q. systems: processes ANSWERS summarizes/adds up the accounts closes the accounts to figure out profits/losses/RE Q. systems: outputs ANSWERS journal entries -- summarize -- close out -- FINANCIAL STATEMENTS financial statements are the outputs Q. systems: control ANSWERS should anyone be able to post journal entries? to process? to produce outputs? need control at every stage Q. what is the purpose of an AIS system? ANSWERS to assist in decision-making we send and receive data and payments the end product, financial statements and reports, aid in both internal and external decision-making Q. modern AIS systems are ____________ modular ANSWERS you buy the components/modules that you NEED don't buy modules that your business doesn't need Q. what are modules that everyone has? general ledger, AR, AP ANSWERS if you're retail, you won't need a manufacturing module if you're service, you won't need an inventory module Q. is ERP the same as AIS? ANSWERS NO! AIS is often part of a larger ERP system ERP is much bigger Q. where do the inputs of a system come from? ANSWERS most transactions don't come from manual journal entries accountants don't initaite thsee transactions, the system does, accountants only do closing entries Q. bc accountants understand the accounting behind an IT system, what must they understand? ANSWERS the entire business, its processes, and the supporting systems Q. control (access) of the data is typically a shared responsibility of who? ANSWERS accounting and IT Q. what do auditors give opinions on? the financials ANSWERS the effectiveness of the system controls which are provided by the AIs and other systems Q. All AIS systems, at the base level, use what? ANSWERS some form of a data base to store accounting data and information we need strong controls here Q. what are the two types of AIS processing types? ANSWERS batch processing real-time processing what is batch processing? push data from one system to another usually runs overnight when no one is using the system typical of older/disconnected systems ex: payroll what does batch processing require? middleware software that connects differenct systems what is real-time processing? up to date, real time data easy to say, hard to do what did the PC revolution do? made businesses more efficient but also led to islands (silos) of disonnected systems in different functional deparatments what was one response to the silos created by the PC revolution? ERP systems one massive application that pervades throughout all functional areas, overcoming data silos ex: SAP, Oracle what are legacy systems? antiquated systems that are increasingly at risk describe functional (departmental) systems typically contained within a department islands of automation applications independently developed and deployed driving force? availability of mini-computers what are problems w functional (departmental) based systems? sharing of data between systems data duplication data inconsistnecy applications that odn't talk to one another limited or lack of integrated information isolated decisions lead to overall ineffiencies increased expenses what greatly advanced the BUSINESS adoption of the PC? IBM Brand reputation branding matters! business was reluctant to embrace personal computers bc of Apple's bad branding describe the ERP market it is highly fragmented but dominated by SAP and Oracle describe the sales process using separate functional systems the result was "silos systems" that don't share data things weren't connected delay and needed labor to re-enter information data silos and inefficiencies describe the sales process using ERP one database that shares information in real time one system that every department uses and puts their info in describe what middleware is everywhere, but you don't see it/use it no user interface program that migrates data from one database to another usually funs overnight real time vs. batch processing older systems can sometimes be "connected" using middleware or manual processing of flate-files (csv) to share data ERP avoids this time lag and provides shared data in real-time - don't have to wait for info to migrate around organization what are the signs you need ERP? you have lots of different softwares for difference processes you don't have easy access to information about your business accounting takes longer and is more difficult sales and customer experience are suffering your IT is too complex and time-consuming describe how AIS is NOT ERP AIS is a COMPONENT of ERP AIS is typically the core/foundation of ERP (not always) what are the 4 methods of tailoring ERP to suit your unique needs? 1. configuration 2. customization 3. bolt-on software 4. best of breed tailoring ERP: Configuration process of making standard software fit your business what you SHOULD DO to make software fit your needs choosing options: setting the dials and levers ex: SAP has 8,000 configuration decisions ex: sales divisions, distribution channels tailoring ERP: customization process of modifying original source code if what you do is -so unique-, you go to SAP and have them change the actual software source code to make it just how you like it AVOID customization if possible tailoring ERP: what should you avoid customization if possible? if you customize it, SAP can't help w maintenance bc no longer a standard model not recommended bc of compatability problems when updated versions of the software installed can cause unexpected problems as it is not tested or supported by the ERP vendor tailoring ERP: bolt-on software third party software solutions that provides a discrete solution to a lack of functionality in the main system an add-on to your ERP system need to figure out how to get it to communicate to main systems extra costs, but not a bad option tailoring ERP: best of breed using different software for different functions best for manufacturing -- SAP best for CRM -- sales force tailoring ERP: issue with best of breed? they don't communicate w each other leads to disconnected data and the need for middleware "composable ERP" why is implementation of ERP so hard? there are all of these ways to take a stock software/vanilla and make it your own taking a standardized product and tailoring it to your needs implementation is hard bc have to tailor it to your needs how Ford uses ERP is so different from how P&G uses ERP who are the 2 big ERP players? SAP Oracle 2 big ERP players: SAP three different offerings + other software products ECC -- S/4 Hana (SAP Business Suit) SAP Business One (acquired mid-market ERP_ SAP Business by Design (mid-market, cloud-based) 2 big ERP players: Oracle many products, mostly acquired Oracle Cloud ERP Oracle E Business Suite ERP (EBS) NetSuite (acquired) JD Edwards (acquired) PeopleSoft (acquired) describe the on-premise (not cloud) ERP architecture client/server environment clients (PC) or hardware software (GUI) inputs -- server (application and database) -- outputs describe the on-premise (not cloud) ERP architecture: client hardware/software environment that can make a request for services for a central repository of resources puts in the inputs describe the on-premise (not cloud) ERP architecture: server hardware/software combination that can provide services to a group of clients in a controlled enironment same basic architecture as a PC (personal computer) just on steroids processes, storage, memory, etc. what is the ERP Traditional Three Tier Structure (software stack)? GUI (Client PC) Application (Server) Database (separate server) ERP Traditional Three Tier Structure: GUI client PC the software the user interacts w "graphical user interface" or web interface GUI on the personal computer sends a request to the server and says "I want to run ____" -- server says "ok put inputs in and I'll summarize and output it" ERP Traditional Three Tier Structure: Application Server one or more helps distribute workload ERP Traditional Three Tier Structure: Database separate server easy "back-end" access to DB can defeat internal controls Types of ERP data? configuration (organizational) data master data transaction data ERP data: configuration (or organizational) data stable, rarely-changing data once you go live w ERP settings to define the business ex: chart of accts, organizationl structure, tax ID numbers, addresses ERP data: master data data used to describe (or supplement) a transaction relatively stable ex: inventory items, materials, customers, vendors ERP data: is it fine to have the same person creating master data that is creating transaction data? no bc of risk of fraud/embezzlement ERP data: transaction data data that is relatively temporary (closed out at the end of an accounting cycle) stored at various stages of a business process ex: sales, purchases, production orders, customer payments describe cloud computing accessing software via SaaS or cloud-native via internet (IU anyware vs. Office365 for the web) legit just someone else's computer you don't have access to massively "scale-able" is cloud computing leased or purchased? typically leased billed monthly by user or transaction what are concerns over cloud computing? data and security hardware, software, database not owned or controlled by client is cloud computing cheaper than heritage/traditional purchases? not neccessarily if their prices go up, then you just have to deal w it more expensive in the long-run bc software as a service what is excel "good" for as an accounting system? analysis modeling simulations ad-hoc reporting forecasting budgeting amortization tables what are concerns regarding excel as an accounting system? no control/audit trail double entry not required no database integrity IT decisions can be based on..... fear, faith, fiction, facts which business cycle is a good place to find ways to cut costs and reduce working capital requirements? procurement cycle/ purchase to pay procurement cycle/purchase to pay: 4 source documents purchase order goods receipt invoice/bill check (payment) procurement/purchase to pay: which source documents are prepared by the seller? invoice/bill procurement/purchase to pay: which source documents are prepared by the buyer? purchase order goods receipt check (payment) what are the 5 major business cycles? 1. procurement cycle -- purchase to pay 2. revenue cycle -- sales, order to cash 3. production cycle -- manufacturing or operations 4. human resources/payroll cycle -- hire to fire 5. accounting cycle -- record to report define the procurement cycle? recurring set of business activities and related in a processing associated with the purchase, receipt, and payment of goods and services procurement cycle's primary objective? to minimize the total cost of acquiring and maintaining inventories, supplies, and the various services the organization needs to function procurement's primary external exchange of information is w who? suppliers (vendors) expenditure cycle business activities? 1. Ordering goods, supplies, and services 2. Receiving and storing goods, supplies, and services 3. Paying for goods, supplies, and services why optimize the procurement process? 1. to reduce inventory and working capital 2. to reduce COGs and improve margins what is inventory TCO? total cost of ownership composed of both GAAP and non-GAAP costs inventory TCO: GAAP accounting costs purchase shipping anything required to prepare the goods for sale holding costs (interest) warranty inventory TCO: non-GAAP costs stock-out costs (lost customers) handling loss time accidents procurement cycle process cycle 1? purchasing order entry procurement cycle: what is a source document? a doc we can analyze to justify/prove a journal entry used to prove that a transaction took place typically sequentially numbered as a control, has a unique identifying doc number that you can source back procurement cycle: who is purchase order document prepared by? the buyer when ordering goods/services procurement cycle: describe a control w the purchase order document each source doc has its own unique identifying/document number that acts like a control that you can source back to similar to a checkbook being pre-printed w check numbers procurement cycle: purchase order source doc sent from buyer to seller indicating an intent to purchase "i want to buy it" starts the process, but in and of itself, is not an economic event nor binding details specific items, quantities, and prices procurement cycle: goods receipt prepared by the buyer when taking physical possession of goods acknowledging that you received the goods ECONOMIC event! debit inventory, but DON'T credit AP bc price isn't firm yet until invoice is received, instead credit the "goods received but not yet billed account" procurement cycle: is goods receipt an economic event? YES debit inventory DON'T CREDIT AP credit "goods received but not yet billed account" procurement cycle: why do you not credit AP? bc the price is not firm until the invoice is received procurement cycle: invoice document bill that you have to pay for the stuff you received NOT an economic event this is when you record the credit to AP!! procurement cycle: who prepares the invoice document? prepared by the seller and sent to the buyer procurement cycle: at which source doc do you credit AP? invoice document procurement cycle: is the invoice doc an economic event? NO procurement cycle: who prepares the check/payment? prepared by the buyer and given to the seller procurement cycle: what is the check/payment usually accompanied by? a remittance advice so seller knows where to apply the payment procurement cycle: who determines when/how to order goods? purchasing department responsibility procurement cycle: various methods to be used to determine when/how to order goods? economic order quantity (EOQ) - ERP materials requirements planning - MRP Just in Time Inventory - JIT "we're running low" procurement cycle: describe the economic order quantity method a way to determine when/how to order goods traditional approach order size is calculated by minimizing the sum of : ordering costs, carrying costs, stock-out costs also used to calculate the re-order point procurement cycle: EOQ -- which factors are minimized in the order size? ordering costs carrying costs stock-out costs procurement cycle: EOQ -- what is re-order point? the inventory level at which a new order should be placed procurement cycle: what is the problem w economic order quantity (EOQ)? presumption of stability works for stable situations! not good when customer demand is highly variable what is MRP? materials resource planning predecessor of ERP uses past data, regression analysis to predict requirements better used for products w predictable demand procurement cycle: MRP -- goal of MRP? to reduce inventory levels by improving the accuracy of forecasting techniques and carefully scheduling production and purchasing around that forecast procurement cycle: MRP -- best used for? products w predictable demand such as toilet paper procurement cycle: Just-In-Time (JIT) attempts to minimize or eliminate inventory by purchasing or producing only in response to actual sales or advanced planning process relies on signals or Kanban between different points in the process, which tell production when to provide (make or buy) the next part procurement cycle: how might companies improve the purchasing process by avoiding sending paper documents via mail? electronic data interchange (EDI) NOT software, its a format just like a .csv or .xml file to send electronic documents procurement cycle: electronic data interchange (EDI) format to send electronic docs, NOT a software used between large and frequent trading partners to avoid sending paper documents used to exchange purchasing/shipping data does NOT pass payments -- only non-monetary transactions eliminates data-entry errors procurement cycle: EDI -- does it pass payments? NO! only non-monetary transactions just data, no financial payments procurement cycle: EDI -- used for what? exchange purchasing/shipping data between large and frequent trading partners to avoid sending paper documents procurement cycle: what is VMI? vendor managed inventory inventory control and purchasing are the VENDOR'S responsibility enterprise system data must be carefully shared (POS data and inventory data) requires VIGILANT CONTROLS for competitive and cyber security reasons (target breach happened via a VMI contractors procurement cycle: what does vendor managed inventory (VMI) require? vigilant controls for competitive and cyber security reasons procurement cycle: process 2? receiving procurement cycle: describe receive and store? receiving report documents details about delivery, supplier, qty received, data received, inspected by, accepted, rejected if qty is difference from purchase order inferior goods (supplier substitution) damaged goods, etc. procurement cycle: what is a debit memo? if any goods are rejected for any reason, buyer issues a debit memo reducing the amount owed procurement cycle: who issues a debit memo? buyer procurement cycle: what is a credit memo? issued by seller in response to a debit memo procurement cycle: process 3? payment procurement cycle: what is the primary control to prevent incorrect disbursements? three way match! procurement cycle: embezzlement controls -- which 3 docs need to match? purchase order goods receipt invoice procurement cycle: describe physical control and application control pre-printed forms pre-printed numbers magnetic ink on check number, bank routing number, accounting number 3 parts (perforated) check goes to bank, remittance in vendor file, paper copy in customer filed software also prints check number that matches the pre-printed number as a control what is a strong control designed to prevent premature or incorrect disbursements of cash provided by an ERP such as NetSuite? defaulting new inventory into a goods-received but unbilled account helps to enforce a 3 way match why are we studying the business cycles? accounting is responsible for accurately recording economic events, preventing fraud, and safeguarding assets must be business process experts to ensure systems are working and to provide adequate internal controls processes give us a framework for organizing all of the many different activities that an organization performs business cycle characteristics: what does a business cycle begin w? capturing data about a transaction business cycle characteristics: what does a business cycle end w? information output, such as financial statement or payments or cash collection inputs -- process -- outputs similar transactions are grouped together to form a business cycle define the revenue cycle the recurring set of business activities and data processing operations associated with providing goods and services to customers and collecting cash in payment for those sales revenue cycle's primary objective? provide the right product in the right place at the right time for the right price revenue cycle's primary external exchange of information is w? customers strategic goal of revenue cycle? maximize revenue what cycle of business cycle is HIGH RISK? revenue cycle revenue cycle: why is it high risk? where you interact w customers 4 times or more results in how a customer views and FEELS ABOUT the entire organization poor service has economic impacts revenue cycle document 1? sales order revenue cycle: sales order document first document generated when you're selling something typically a reflection of (and acknowledgement/response to) the purchase order saying yes you will sell this NOT an economic event, just an acknowledgement revenue cycle: is sales order doc an economic event? NOT an economic event, just an acknowledgement revenue cycle: who creates a sales order doc? sales rep or customer service rep revenue cycle: document #2? packaging slip revenue cycle: packaging slip document that accompanies the goods goes in the box w the goods only shows inventory item and number of items, no $ amt! revenue cycle: describe the control w the packaging slip only shows inventory item and number of items, no $ amt! people in the warehouse/shipping centers don't need to know how much it is worth! revenue cycle: document #3? invoice/bill revenue cycle: who creates invoice/bill prepared by the SELLING company revenue cycle: when do you want the invoice/bill? want the invoice there as soon as possible after goods are delivered if it gets there ahead of time, customer might not do a 3-way match efficiently and it may push back your payment also getting a bill for something you haven't receive yet involves bad feelings/nuances revenue cycle: document #4? payment receipt revenue cycle: who creates the payment receipt document produced by the SELLER revenue cycle: payment receipt tells buyer you received their payment and how you applied their payment may be reported on a monthly statement of account purchase sales document -- list out the back and forth document cycle 1. buyer sends purchase order 2. seller sends sales order *sales receipt is an internal doc* 3. seller sends packing slip 4. buyer sends goods receipt 5. seller sends invoice 6. buyer sends check payment 7. seller sends payment receipt why was the Chick-Fil-A embezzlement a federal court issue? bc it was a bank fraud secret service has a financial investigation branch in addition to protecting the president they prosecute federal financial crimes and report to the US treasury revenue cycle: process 1? sales order entry revenue cycle: process 2? shipping revenue cycle: process 3? billing revenue cycle: process 4? cash collections revenue cycle: sales order entry options this is what increases the complexity of sales order! they can come in SO many channels - mail - mobile - fax - phone - store - sales rep in fields - electronic data interchange -- allows vendor managed inventory revenue cycle: how are most business-to-business sales made? on credit so there is a risk of bad-debt that needs controls revenue cycle: when should credit sales be approved? before they are shipped revenue cycle: what should each customer have? a credit limit the maximum allowable balance for each customer revenue cycle: describe separation of duties don't want your sales people making decisions about credit=worthiness bc they work on commission so they want to make the sale and are therefore incentivized to "approve" anyone's credit move credit approval out of sales department entirely and put it into the AR group revenue cycle: process 2 -- what does picking ticket that is printed by sales order entry trigger? the pick and pack process some companies have an automated warehouse system w computers, bar-code scanners, conveyer belts, and communications some warehouses have NO people and just use radio=frequency identification (RFID) revenue cycle: process 2 -- pick and pack the order w RFID radio-frequency identification is replacing barcodes RFID tag eliminates the need to align items w scanners instead, the tags can read as the inventory moves throughout the warehouse revenue cycle: process 2 -- ship the order shipping clerk compares the physical count of inventory with the quantities on the picking ticket (from the sales order) the packing slip lists the qty and description of each item included in the shipment revenue cycle: process 3 -- billing customers may pay individual invoices or multiple (month-end balance) which adds to the complexity of the process bills (invoices) can be sent in many ways revenue cycle: process 3 -- remittance advice customer is typically asked to return a copy of the invoice when mailing in a payment return copy is referred to as the remittance advice (turn around document) we want to know what invoice you are paying us for (advises me how to apply this money to my AR) revenue cycle: process 3 -- what is the "turn-around document"? remittance advice send invoice to customer and they turn around and send a copy right back remittance = convey payment revenue cycle: process 3 -- exceptions? account adjustments and write-offs involves either the return of merchandise by customers for credit or the write-off of customers who do not pay for their bill after repeated attempts to collect payment have failed, may be necessary to write-off a customer's account revenue cycle: process 3 -- exceptions....what does credit manager do when it cannot collect a payment? issues a credit memo to authorize the write-ff is a CREDIT don't fix, rewrite the invoice, just issue a credit memo revenue cycle: process steps 1. sales order - response to a purchase order - not a bill, not an economic event - no goods are transferred - its an acknowledgement 2. packing slip - generated in a warehouse - when they fulfill order, they make a packing slip 3. invoice - generated by accounting department (probs AR people) 4. cash receipt what are the controls in the revenue process? credit approval control omit dollars from packing slip having AR handle invoices revenue cycle: credit approval control trying to prevent bad debt expense only want to sell to people who are able to pay we may check their payment history w us, their general credit, etc. and determine if we want to extend additional credit or credit for the first time this duty should be separated from the sales department bc they get commission and would be willing to approve anyone revenue cycle: omitting dollars from packing slip control packing slip only includes qty and items, no $ bc people handling the package on shipping and receiving side don't need to know the value of the goods revenue cycle: having AR handle invoices control once again, separation of duties don't have sales people do the invoices revenue cycle: process 4 cash collections: how can the process be made more efficient? scanning technology (OCR or optical character recognition) can be used to improve the efficiency of processing customer payments and check paymnets revenue cycle: what is the control in cash receipts process? lock box revenue cycle: describe the lockbox control? postal address to which customers send their remittances participating bank picks up the checks from the post office box and deposits them to the company's account send them to the post office box instead of your office the post office box isn't YOURs. its the BANKS. customers think they are sending it to you, but they are actually sending to the bank revenue cycle: what is the purpose of the lockbox control? get ur money faster, gets into your account faster bc it doesn't go to your office and then you have to bring it to your bank keeps the checks from ever being in the employees' hands bc they could diver these checks to their own accounts if they really wanted to revenue cycle: how do you still know the details of the checks if they are sent to lockboxes? bank sends PDF images of them so you can still apply them to accounts receivable but you never physically have them revenue cycle: bonus process? customer returns revenue cycle: document #5? return material authorization revenue cycle: return material authorization document if seller allows return, they give this number to customer when product goes back to warehouse, person who receives it types in that number and sees that the return was authorized RMA# this document is often not physically produced, but the unique RMA number is given to buyer and required for any goods returned revenue cycle: what is RMA? return material authorization number given to buyer that signifies that their return is authorized by the seller payment control in NetSuite? if employee gets a check and they forge it, it will bounce define the HR/payroll cycle recurring set of business activities and related data processing operations associated w effectively managing the employee workforce sometimes known as hire-to-retire or hire-to-fire define HR in terms of assets because employees are so valuable, turnover (churn) is expensive average cost of replacmenet is more than 2 times the employer's annual salary turnover rates need to be managed so they're not excessive but some degree of turnover is good (fresh perspectives) HR/Payroll Cycle Process Steps 1. recruiting and hiring new employees 2. training 3. compensation (payrolls) 4. performance evaluation 5. discharge of employees (voluntarily or involuntarily) payroll cycle activities 1. update master data -- tax rates, terminations, deductions, pay changes 2. update transaction data -- validate and enter time and attendance data 3. process payroll -- batch mode 4. calculate employer-paid benefits and taxes 5. disburse payroll -- funds via check or eft, paystubs to employees 6. disburse payroll taxes and misc. deductions payroll/HR cycle: sources of inputs to payroll systems HR provides info about hiring, firing, and pay-rate changes employees provide changes in discretionary deductions (ex: optional life insurance) various depts. provide info about actual hours worked by employees govt agencies provide tax rates and regulatory instructions insurance companies and other orgs. provide instructions for calculating and remitting various withholdings payroll/HR cycle: outputs? principal output of the payroll system are paychecks also produces tax payments and reports to variety of external agents (govt, insurance, etc. payroll/HR cycle: paycheck outputs employees receive individual paychecks a payroll check is sent to the bank to transfer funds from the company's regular account to its payroll account checks are issued to govt agencies, insurance companies, etc. to remit employee and employer taxes, insurance premiums, union dues, etc. payroll/Hr cycle: external agents of payroll process federal govt (2 entities) - income tax - social security - medicare - federal unemployment insurance state govt (4 entities) - income tax via indiana, country, city, and state unemployment insurance insurance (many entities) - medical - dental - vision - life - disability benefits (many entities) - 401k - other retirement - stock repurchase plan employee (many banks) payroll/HR cycle: payroll service providers ADP -- automatic data processing paychex intuit (quick books) payroll/HR cycle: why is payroll processed in batch mode? bc - paychecks are issued periodically - most employees are paid at the same time - provides a better control and efficiency of resources accounting/record to report cycle: steps? 1. update general ledger -- throughout the month 2. post adjusting entries -- month-end 3. prepare financial statements -- month-end 4. prepare managerial reports -- month-end accounting/record to report cycle: describe the consolidation of ledgers typically, large companies will have many ledges in MULTIPLE different AIS systems (business units/countries, divisions/acquisitions) ledgers must be consolidated and inter-company transactions must be eliminated accounting/record to report cycle: solution to consolidation of ledgers? Oracle Hyperion -- an accounting consolidation tool HFM -- hyperion financial management used to consolidate ledgers on disparate AIS systems we want controls to prevent what two things? mistakes and fraud corporate fraud: executive level bribery/corruption earnings manipulation (cooking the books) corporate fraud: lower level embezzlement/theft (cash or other assets) why does a computer based AIS require different internal control policies and procedures? computer processing may reduce clerical errors but increase risks of unauthorized access or modification of data files segregation of duties must be achieved different in an AIS (role-based security) provide opportunities for enhance of some internal controls how do you implement separation of duties in a computer environment? role-based security why is internal control a process? It permeates an organization's operating activities is an integral part of management activities control concepts: general (physical) control tangible those designed to make sure an organization's control environment is stable and well managed they apply to all sizes and types of systems ex: security management controls control concepts: application controls prevent, detect, and correct transaction error and fraud concerned w accuracy types of internal controls? preventative, detective, corrective types of internal controls: preventative deter problems before types of internal controls: detective discover problems are they arise when you're online ordering a pizza but you forget to put in address, it won't let you submit order types of internal controls: corrective controls correct and modify systems types of internal controls: car example preventative: locks on your cars detective: car alarm corrective: auto insurance what was the FCPA? federal corrupt practices act beginning of internal control regulation origin of COSO what is COSO? Committee of Sponsoring Organizations not part of govt, non-profit organization consists of: AAA, AICPA, institute of internal auditors, etc. COSO framework? control environment, risk assessment, control activities, information and communication, monitoring framework that auditors used to evaluate control fiduciary framework that would work for a company but wasn't computerized at all it emphasizes fiduciary duty,, but limited in its application to IT (ISACA created COBIT framework to help w this) which framework is for fidicuary? COSO framework which organization/framework is for technology? ISACA COBIT framework what certification does ISACA grant? CISA certified information system auditors what certification does ISC grant? CISSP CPA of cybersecurity world what are the two major certifications? CISA CISSP what is the ISC? international information system security certification consortium what does SAP stand for? Systems, Applications, and Products in Data Processing where is SAP located? waldorf, germany SAP S/4HANA: MM? material management purchase-to-pay SAP S/4HANA: SD? sales and distribution order-to-cash SAP S/4HANA: FI/CO? together! they form the AIS system the general ledger describe the SAP document principle once you create a transaction, journal entry, purchase, sale, etc. that has a financial impact, it is there forever so there is an audit trail. cannot delete or edit if you mistakenly make one, all you can do is make a reverse entry how many digits for taxonomy in SAP? 6 6 digits for account numbers how many digits for taxonomy in net suite? 4 digits for account numbers Information Technology a system comprising independent parts that work together to advance an organization's goals & vision by increasing growth, profits, and productivity. 3 Components of an IT System Hardware, Software, and People. IT technology used to create, maintain, and make information accessible using systems for information storage, retrieval, and exchange. System a collection of elements that interact to achieve a common goal. Networks support communication between the elements of an IT system. Hard Disk a disk on which information is saved and stored in the computer even when it is not connected to a power supply. Monitor an output device that displays information in pictorial form, allowing the user to interact with the computer interface and open programs, typically using a keyboard and mouse. Motherboard one of the most essential parts of a computer system that holds many of the crucial components of a computer, including connectors for input and output devices. Central Processing Unit (CPU) a control center that converts data input to information output and executes stored program instructions. Random Access Memory (RAM) the memory within a computer that holds the running programs and data when the computer is in use. Network Cables connect and transfer data & information between computers. Wifi Routers transmit, receive, and decode information sent using radio waves. Laser Printers use a laser to form a pattern of electrostatically charged dots on a light-sensitive drum, which attracts toner; the toner is transferred to a paper and is fixed by a heating process. Internet resources available for the public. Intranet resources only available for users or systems of a specific organization. Extranet makes resources available within an organization, but it also makes that information available to other specific organizations or users, such as contracted, third-party consultants. Computing any activity that uses a computer to manage, process, or share information. 5 Most Commonly Recognized Computing Disciplines Computer Engineering, Computer Science, Software Engineering, Information Systems, Information Technology. Computer Engineering focuses on the design of hardware systems and the software that makes them work. Computer Science addresses the design and implementation of software with an emphasis on developing effective ways to solve computing problems and creating new ways to use computers. Software Engineering focuses on the development and maintenance of reliable and efficient software systems. Information Systems integrate IT solutions meant to meet organizational business goals. Information Technology focuses on the technology supporting information systems in an organization rather than the information residing on the systems or being communicated with them. 5 Key Roles in IT Industry IT Administrator, IT Architect, IT Engineer, Help Desk Professional, DevOps Professional. System Administrator responsible for providing technical support for hardware and software issues end users encounter. Network Administrator responsible for designing, planning, setting up, and maintaining an organization's network. Database Administrator responsible for installing and configuring databases. Security Administrator responsible for installing, administering, and troubleshooting network security issues. Web Administrator responsible for troubleshooting error messages employees encounter when attempting to access their organization's website. Cloud Architect responsible for overseeing a company's cloud computing systems. Network Architect responsible for designing networks and monitoring traffic. Automation Architect responsible for modernizing business processes and developing reasons or rationales for or against a process being automated. Cybersecurity Architect responsible for designing, building, testing, and implementing security systems within an organization's IT network. Machine Learning Engineer responsible for allowing an organization to take full control of its data. Software Engineer design and develop software that makes hardware and software systems work, including operating systems, database systems, and embedded systems. Network Engineer set up, configure, maintain, and upgrade systems where data resides and that support the exchange of information, including communication systems and networks. Cloud Engineer use their technical and analytical skills to help companies identify opportunities for migrating a part or all of their infrastructure to the cloud, supporting the more efficient use of resources and improving IT operations. Technial Support supports, monitors, and maintains workplace technology and responds to user requests for help. Systems Analyst investigate business problems and create information systems to provide solutions. Data Analyst use statistical and other quantitative methods to gain insights that support the organization's decision making. Security Analyst responsible for monitoring an organization's network security breaches. Cybersecurity Specialist work with organizations to keep their information systems secure and ensure integrity, confidentiality, and availability of data. Technical Consultant provide technical expertise by developing and implementing IT systems for external clients. Project Managers organizes people, time, and other resources to make sure projects meet requirements and are completed on time & within budget. Web Developer builds and maintains websites and their infrastructure. Software Tester responsible for creating, documenting, and executing manually created test plans and procedures related to the system anomolies. Technical Sales identify and help clients adopt IT services or technologies. Information terms of data, knowledge in terms of information, and wisdom in terms of knowledge. Knowledge a dynamic combination of experience, values, contextual information, expert insight, and grounded intuition that provides an environment and framework for evaluating and incorporating new experiences and information. Wisdom knowing the right thing to do. Connectedness Wisdom essentially "the path to connected understanding" when interpreting data. Smart Data trusted source for business decisions. Examples of Data "Phoenix", "15% Humidity", "45 MPH", "18:23". Examples of Information "It's hot outside", "The time is 3:05 AM", "The customer's name is Mike", "The price of the item is $4.25". Structured Data coded in a way that makes it easy to convert into a form usable for analysis. Unstructured Data data that is more complex and possibly stored in a format that is not easily decoded. Big Data data that is incapable of being processed by previous generations of analytical tools. Data a strategic resource for an organization, informing operations and providing insights. 3 Core Variations of Cloud-Based Systems Infrastructure as a Service (IaaS), Platform as a Service (PaaS), Software as a Service (SaaS). Infrastructure as a Service (IaaS) provides access in a virtualized environment and the computing resources are composed of virtual hardware. Platform as a Service (PaaS) customers have access to a platform that supports the development and management of web applications. Software as a Service (SaaS) the software is licensed to customers with subscriptions and central hosting. 3 Steps for Transforming Institutions Knowledge into Implementable Data Solutions Capturing, Analyzing, and Using. Data Hygiene the processes of ensuring the cleanliness of data. Data Scrubbing the process of amending or removing data in a database that is incorrect, incomplete, improperly formatted or duplicated. Duplicate Data two or more identical records. Conflicting Data the same two records wit differing attributes. Incomplete Data missing attributes. Invalid Data attributes not conforming to standardization. Unsynchronized Data data not appropriately shared between two systems. Quality Data data that is precise, valid, reliable, timely, and complete. Precison how precise that data is in the context of its intended use. Valid meets the requirements of the data collection process. Input/Output Models Requirement from the Environment or Input, Computation Based on the Requirement or Process, Provision for the Environment or Output. People Liveware Input Mouse, Keyboard, Microphone. Process CPU Storage RAM and Hard Disk. Output Printer, Monitor, and Speakers. IPO Model hardware provides an environment in which each operation is performed, representing the boundaries of each box in the diagram. Local Area Network (LAN) spans a single home, school, or small office building and provides a connection for devices that are within the same network. Wide Area Network (WAN) reaches across cities, states, or even across the world. Two Types of Networks Client-to-Servers & Peer-to-Peer Physical Topology the actual layout of how systems are placed in the network. Logical Topology how the data actually flow and is extremely important when considering things like land balancing normal traffic, network backups, and replication of data. Most Common Topology Layouts Bus, Star, Ring, and Mesh. Hardware Motherboard, RAM, CPU, Hard Disk, Power Supplies. Software Operating System, Text Editing Program, Internet Browser. Network LAN/WAN, Internet, Client-to-Server, Peer-to-Peer, Bus/Ring/Star/Mesh. Abacus consists of strings and beads strung on rods, which are mounted on a rectangular frame: as the beads are moved back and forth on the rod, their positions represent stored values. Leibniz Machine the gears of the machine are initially mechanically set in a position that represents the input, and their final state represents the output of the calculations. ENIAL Electric Numerical Integrator and Calculator. Search Engines uses technologies to index and tag pages so users can quickly search for resources based on keywords. First Generation Vacuum Tubes. Second Generation Transistors. Third Generation Integrated Circuits. Fourth Generation Microprocessors. Fifth Generation Current/Future. Quantum Computing the study of non-classical model of computation. Nanotechnology the use of nanoscale tools and nonbiological processes to build structures, devices, and systems at the molecular level. Computer Hardware includes the physical, tangible parts or components of a computer. Computer Software instructions the can be stored and run by the physical hardware. Hard Drive Disk works by writing binary data onto spinning magnetic disks called platters that rotate at high speeds. Solid-Slate Drive stores data by using static flash memory chips. Graphics Processor Unit processes huge batches of graphic data. Expansion Card a printed circuit board that can be inserted into an electrical connector or expansion slot on a computer motherboard, backplane, or riser card to add functionally to a computer system via the expansion bus. Expansion Bus a computer bus that moves information between the internal hardware of a computer system and peripheral devices. 3 Main Components of Hardware CPU, Storage, and Peripheral Devices. Cache Memory type of memory called SRAM, Static Random Access Memory. DRAM Dramatic Random Access Memory. BIOS Basic Input Output System. UEFI Unified Extensible Firmware Interface. Peripherals includes internal storage devices and graphics cards. Graphics Cards devices that render the information on computer monitors. PCie Peripheral Component Interconnect Express. ISA Industry Standard Architecture. EISA Extended Industry Standard Architecture. IPOS Cycle connects all the components to input, process, output, and store data. The CPU Consists of 3 Parts Arithmetic Processing Unit, Control Unit, Processor Register. Arithmetic Processing Unit contains circuitry that performs operations on data. Control Unit contains the circuitry coordinating the machine's activities. Processor Register contains data storage cells called registers. Registers high-speed storage areas in the CPU. The Control Unit: transfers data from the main memory into the registers, informs the ALU which registers hold the data, activates the ALU, and tells the ALU which register should receive the result. Memory Access Register (MAR) holds the memory location of data that needs to be accessed. Memory Data Register (MDR) holds data that is being transferred to or from memory. Accumulator (AC) holds the ALU results. Program Counter (PC) holds the address of the next program instruction to be executed. Current Instruction Register (CIR) holds instructions during processing. Address uniquely identifies every location in the memory. Read-Only Memory (ROM) stores instructions for crucial system activities. Peripheral Devices various units that support the input and output functions. Buses wires that serve as electronic roadways, transmitting information between the CPU and other components. Address Bus carries the destination address of where the data is assigned to be prcoessed. Data Bus carries data between the processor, the memory unit, and the input & the input/output devices. Control Bus carries control signals from the CPU; controls and coordinates all activities within the computer system. System Clock sends out a pulse of energy at regular intervals. Megahertz converts to millions of pulses per second. Gigahertz converts to billions of pulses per second. Communication Devices allow a computer to send and receive data to and from other computers. Supercomputers biggest and fastest computers, designed to process huge amounts of data. Mainframe Computers designed to support hundreds or thousands of users simultaneously. Workstation single-user computer designed for technical or scientific applications. Microcomputer general-purpose computer for individual sale. PAN used for short-range communications, within a few feet. LAN a collection of computers in a single building or building complex. WAN link systems over a greater distance. Star a single machine serving as a central point to which all others are connected. Ring connect directly to each other as a peer. Mesh connects every device to every other device, the the network. Bus machines are connected to a common communication line called a bus. Interprocess Communication allows the activities or processes on different computers within a network to coordinate actions and complete tasks. Distributed Systems execute software as processes on more than one computer. Cluster Computing uses many independent computers to provide computation or services comparable to those of a larger machine. Grid Computing more loosely coupled than other clusters but still works together as a system to complete large tasks. Cloud Computing provides large pods of shared computers that can be allocated to clients as needed. Types of Twisted Pair Cables Unshielded Twisted Pair & Shielded Twisted Pair. Coaxil Cable shielded and insulated copper cable used in computer networks and to deliver cable TV services. Baseband a signal at a very narrow frequency range on which data or information is superimposed and then transmitted. Broadband high-capacity transmission technologies that are used to transmit data, voice, and video across long distances at high speeds. Fiber-Optic Cable uses the concept of reflection of light through a core made up of glass or plastic. Repeaters extend the range of cabling types so connections can be made by increasing the strength of the network signal. Bridges used to connect to different types of networks and provide management of the message. Switches used on LANs to reduce network traffic by management of network messages. Routers device that makes the internet possible. Tier 1 of ISP least common type of ISP and serves as the backbone of the internet. Tier 2 of ISP more common and regional scope. Tier 3 of ISP typically independent internets, sometimes called intranets, operated by a single organization that supplies internet access to homes and businesses. Internet Networking Systems use addressing systems to assign a unique identifier to each computer in the network. Internet Corporation for Assigned Names and Numbers (ICANN) a nonprofit organization that coordinates the internet's operations, awards blocks of consecutively numbered IP addresses to ISPs. IPx4 Addresses traditionally written in dotted decimal notation, with the bytes of the address separated by periods. IPv6 Addresses written in hexadecimal. Network Protocols rules, procedures, and formats that govern the communication of multiple devices over a network. Simple Mail Transfer Protocol uses Domain Name System lookups to identify the recipient of the email and send the message over the internet to a mail server where it can be retrieved using protocols such as POP3 and IAMP. Voice Over Internet Protocol used for communication over the internet. Software Packages allow users to access hypertext are either browsers or web servers. Browser resides on the user's machine to obtain the requested materials and present them to the end user in an organized way. Web Server resides on the computer containing the hypertext documents. HTTP Protocol used to transfer data between web servers and browsers. URL the protocol, domain, and all subdomains, as well as the resource path ID and name of the document. HTML a way of encoding a document. Tags how the document should appear on a display screen, what multimedia resources should accompany the document, and which elements within the document are linked to other documents. Extensible Markup Language provides a standardized style for designing notional systems for representing data as text files. Malware any software intentionally designed to cause damage to a computer, server, client, or computer network. Virus a software program that infects a computer by inserting itself into programs that already reside in the machine. Worm an autonomous program that forwards copies of itself to other machines in a network and could result in detriment of individual machines or the operations of the network. Spyware resides on a computer, collecting information about the computer's activities and reporting back to the spyware's instigator. Phishing technique used to obtain private information by simply asking for it. Denial-of-Service the process of overloading a computer with messages and results in suffocating the network resources. Packet Sniffing the attacker intercepts the data as it is traveling to or from the victim's device. Brute Force Attack the attacker uses all possible combinations of characters to learn a user's passwords. Dictionary Attacks performed by the attacker by using an application and a large dictionary text file with just words. Rainbow Tables try to identify the hash value of the password, then convert it back to plain text. Firewall blocks outgoing messages with certain destination addresses or block incoming messages from untrustworthy sources. Proxy Servers a software that acts as an intermediary between a client and a server to shield the client from adverse actions of the server. Network Auditing Software monitors network behaviors such as the origin and volume of traffic, looking for anomalies to proactively or reactively unwanted occurences. Antivirus Software detects and removes known viruses from the network. Encryption encodes information to keep it confidential even if the data is stolen. System Software general purpose software that is used to operate computer hardware. Application Software specific-purpose software used to perform a specific task. 3 Most Common Operating Systems Windows, Mac, and Linux. Utility Software helps customize the operating systems function. Kernel the internal part of an operating system. User Interface allows end users to communicate with the operating system. Command-Line Interface type of user interface that communicate with end users through textual messages using a keyboard and monitor. Graphical User Interface allow end users to issue commands through input devices such as mouses, keyboards, or touch screens. Memory Manager manages the system's primary main memory. Device Drivers translate generic requests into the technical steps required to complete the task. Productivity Software used to complete tasks such as writing documents, managing personal information, giving presentations, sending data, and sending emails. Collaboration Software helps people communicate and work with one another and helps computers share information. Specialized Software performs tasks for specific purposes. Bespoke custom made software, specifically designed and developed for an organization. Off-the-Shelf provides a general set of features that are useful to a broad range of users. Hybrid Software off-the-shelf software, customized to an organization's needs. Shareware can be installed as a trial limited by time/functionality. Freeware free to use. Public Domain no EULA and no intellectual property protections and is available for anyone to download and use ate their own discretion. Source Code a special-purpose system software used to translate the source code into machine code. Complier translates source code into machine language. Interpreters translate and execute source code one line at a time. C++ uses a vocabulary and a set of rules for instructing a computer to perform certain tasks. Python an easy to use programming language that does not require a complier for debugging. JavaScript a programming language designed to enable user engagement with dynamic elements on webpages. Tel often used in rapid prototyping and the creation of GUIs, Tel is a simple and compact language but it is also very powerful. PHP an all-purpose language that is especially suitable for the web-development. Algorithm a step-by-step formula outlining how to execute a task. Database Management System converts large amounts of data into a useable format to help users make business decisions. Database Administration refers to the whole set of activities that ensure all databases are highly available, secure, and scalable. Traditional Files present information from a single point of view and do not interact with other files. Relational Databases allowing information to be accessed from various views through internal linking between entries. Database Research act of analyzing and converting data into information that can be used in decision making. Database Table computer of records and fields that hold data. Field contains a single piece of data about the subject of a record. Flat-File Database stores data in a plain text file. Hierarchical Database data is organized in a tree structure. Database Operation an activity through which users and applications access and manipulate data in relational databases. Selection Operation takes rows from one table and creates a new table. Union Operation combines distinct fields from multiple tables that have the same set of attributes and data types. Product Operation creates a result table that includes all of the attributes from the two tables. Join Operation combines two tables, but records are only appended when a matching criterion is met. Object-Oriented Databases store complex data and relationships between data directly without using inter-table relations. NoSQL can accommodate a wide variety of data models, including key-value, document, columnar, and graph formats. Data Lake a system of data stored in row format. Distributed Database data residing on different machines. Scalability the ability to accommodate increasing demands while using existing resources. Database Tuning optimizing performance of database systems. DBA Responsibilities Database Security, Database Tuning, High Availability, Business Continuity, Backup & Recovery, Reporting, and Designing & Developing Database Applications. IT Functions Cover 5 Different Domains Communication, Data Collection & Management, Information Security Management, Consumer Relationship Management, and Proce