Accounting Information Systems

Transaction found under Expenditure/Procurement cycle - answer-Track vendor performance, record inventory receipts using the goods receipt transaction, process vendor invoices, pay invoices. Transaction found under Hr/Payroll - answer-Update employee master data, employee time tracking, create tax slips, government reporting, calculate employee payroll. Transaction found under financing cycle - answer-Cash position analysis, debt repayment schedule, debt covenant management, send information to other business cycles. Production/Manufacturing - answer-Process raw material into finished product, update inventory for raw material, create standard costs using production recipe and overhead allocation. What are the components of an accounting information system? - answer-People, procedures and instructions, data, software, information technology infrastructure and internal controls. Data flow diagram - answer-1.Data flow diagram represents the flow of data through a system such as one or more business processes. 2.They are constructed with increased detail to facilitate new system design 3.Uses limited symbols, easy to read and understand. 4.They are created in pairs, physical ( what position do the work) and logical views (what work gets done) ERP System - answer-Increased responsiveness and flexibility while aiding in the decision-making process. It is an enterprise-wide information system designed to coordinate all the resources, information, and activities needed to complete business processes such as order fulfillment or billing. Segregation of accounting duties - answer-This process effectively segregates the Authorization function from, Custody and Recording. Corporate Governance - answer-It is a set of processes and policies in managing an organization with sound ethics to safeguard the interest of its stakeholders. It promotes accountability, fairness, and transparency in the organization's relationship with its stakeholders. Functions of Control - answer-Three functions of internal controls are: Preventive, Detective and corrective controls. Types of control - answer-General and application controls Components of internal controls - answer-There are 8 components of internal control are: Internal Environment, event identification, risk assessment, risk response, control activities, information and communication, monitoring. Four categories of objective settings for internal controls are: - answer-Strategic, operations, reporting, compliance The key criteria of business requirements for information: - answer-Effectiveness, efficiency, confidentiality, integrity, availability, compliance and reliability. Functions of internal control. - answer-Prevention, detection and correction. Corporate governance - answer-A set of processes and policy in managing an organization with ethics to safeguard the interest of its stakeholders. Operating systems - answer-Application, disk drive, mouse, printer, keyboard, monitor. Five fundamental control objectives - answer-Protect itself from users, protect users from each other, themselves, be protected from itself and its environment. Security controls in wireless networks - answer-It includes but not limited to: assigning roles and responsibilities, creating policies and procedures, conducting risk assessment on a regular basis. Operational control - answer-Protecting a firm's premise and facilities, preventing and detecting physical security breaches, and providing security training to employees, contractors, or third party users. Technical controls - answer-Primarily implemented and executed through mechanisms contained in computing related equipment. CATTs - answer-Imperative tools for auditors to conduct an audit in accordance with heightened auditing standards. GAAS - answer-Generally accepted auditing standards ISASs - answer-Information systems auditing standards provides guidelines for conducting an IS/IT audit (issued by ISACA) IIA - answer-Institute of internal auditor. .. based on audit tools and other data analysis techniques when conducting internal audits. Black box - answer-The information contained on the outside (input, output )