ACCT 3220 Final Exam Review- Clemson Study Guide
General Ledger & Reporting System - ANSWER 1. Update general ledger
2. Post adjusting entries
3. Prepare Financial statements
4. Produce management reports
General Ledger & Reporting Threats - ANSWER -Inaccurate/Invalid General
ledger master data
-Unauthorized disclosure of financial statements information
-Loss or destruction of general ledger
Update General Ledger - ANSWER Post journal entries from: accounting
subsystems (real time or periodic)
Update General Ledger Threats - ANSWER -Inaccurate updating of general
ledger data
-Unauthorized journal entries
Post Adjusting Entries - ANSWER Process begins after initial trial balance
creation, originate from controller's office and possibly from others (stored
adjusting entries in journal voucher file)
Categories of Adjusting Entries - ANSWER 1. Accruals
2. Deferrals
3. Estimates
4. Revaluations
5. Corrections
Post Adjusting Entry Threats - ANSWER -Inaccurate adjusting entries
-Unauthorized adjusting entries
Extensible Business Reporting Language (XBRL) - ANSWER Programming
language designed specifically to facilitate better communication and sharing of
business information
Instance Document - ANSWER Contains data from financial statements
Taxonomy - ANSWER Set of files defining the various elements and the
relationship between them
Linkbases - ANSWER Describes relationships between elements
Reference - ANSWER Identifies relevant authoritative pronouncements
, Calculation - ANSWER Specifies how to combine elements
Presentation - ANSWER How to group elements
Label - ANSWER Associates human-readable labels with elements
Prepare Financial Statements Threats - ANSWER -Inaccurate Financial
Statements
-Fraudulent financial reporting
Responsibility Accounting - ANSWER Tracks expenses, revenues, investments,
and operational statistics and reports such information by area of responsibility
of individual managers
Flexible Budgets - ANSWER Budget flexes (changes) in response to a measure
of organizational activity
Balanced Score Card - ANSWER -Financial measures
-Customer measures
-Internal Operations measures
-Innovation and Learning measures
Financial Measures - ANSWER Improve profitability and return value to
shareholders
Customer Measures - ANSWER Improve customer satisfaction
Internal Operations Measures - ANSWER Fill orders timely
Innovation and Learning Measures - ANSWER Develop new products
Produce Management Reports Threat - ANSWER Poorly designed reports and
graphs
Fraud - ANSWER A false representation of a material of fact
Misappropriation of Assets - ANSWER Theft of a companies assets involving
elements of fraud
Fraudulent Financial Reporting - ANSWER Intentional or reckless conduct that
results in materially misleading financial statements
Insiders - ANSWER Most AIS-related frauds are committed by insiders
General Ledger & Reporting System - ANSWER 1. Update general ledger
2. Post adjusting entries
3. Prepare Financial statements
4. Produce management reports
General Ledger & Reporting Threats - ANSWER -Inaccurate/Invalid General
ledger master data
-Unauthorized disclosure of financial statements information
-Loss or destruction of general ledger
Update General Ledger - ANSWER Post journal entries from: accounting
subsystems (real time or periodic)
Update General Ledger Threats - ANSWER -Inaccurate updating of general
ledger data
-Unauthorized journal entries
Post Adjusting Entries - ANSWER Process begins after initial trial balance
creation, originate from controller's office and possibly from others (stored
adjusting entries in journal voucher file)
Categories of Adjusting Entries - ANSWER 1. Accruals
2. Deferrals
3. Estimates
4. Revaluations
5. Corrections
Post Adjusting Entry Threats - ANSWER -Inaccurate adjusting entries
-Unauthorized adjusting entries
Extensible Business Reporting Language (XBRL) - ANSWER Programming
language designed specifically to facilitate better communication and sharing of
business information
Instance Document - ANSWER Contains data from financial statements
Taxonomy - ANSWER Set of files defining the various elements and the
relationship between them
Linkbases - ANSWER Describes relationships between elements
Reference - ANSWER Identifies relevant authoritative pronouncements
, Calculation - ANSWER Specifies how to combine elements
Presentation - ANSWER How to group elements
Label - ANSWER Associates human-readable labels with elements
Prepare Financial Statements Threats - ANSWER -Inaccurate Financial
Statements
-Fraudulent financial reporting
Responsibility Accounting - ANSWER Tracks expenses, revenues, investments,
and operational statistics and reports such information by area of responsibility
of individual managers
Flexible Budgets - ANSWER Budget flexes (changes) in response to a measure
of organizational activity
Balanced Score Card - ANSWER -Financial measures
-Customer measures
-Internal Operations measures
-Innovation and Learning measures
Financial Measures - ANSWER Improve profitability and return value to
shareholders
Customer Measures - ANSWER Improve customer satisfaction
Internal Operations Measures - ANSWER Fill orders timely
Innovation and Learning Measures - ANSWER Develop new products
Produce Management Reports Threat - ANSWER Poorly designed reports and
graphs
Fraud - ANSWER A false representation of a material of fact
Misappropriation of Assets - ANSWER Theft of a companies assets involving
elements of fraud
Fraudulent Financial Reporting - ANSWER Intentional or reckless conduct that
results in materially misleading financial statements
Insiders - ANSWER Most AIS-related frauds are committed by insiders
