AIS

• Accuracy is essential to ensure information is free from material errors
• Production Planning involves scheduling the flow of materials, labor, and machinery to efficiently meet production needs
• Quality Control monitors the manufacturing process to ensure finished products meet the firm's quality standard
• Network Administration is responsible for the effective functioning of the software and hardware in the organization's network
• Distribution is the activity of getting the product to the customer after the sale
• Personnel are competent and reliable employees, a valuable resource to a business
• Finance manages the financial resources of the firm through banking and treasury activities
• Accounting Independence states that accounting activities must be separate and independent of functional areas maintaining custody of physical resources
• Data processing function brings IT personnel, computer hardware, application programs, and corporate data to support user information needs through transaction processing and information reporting
• Centralized data processing model involves all data processing performed by one or more large computers housed in a common data center serving users throughout the organization
• Distributed Data processing is when users process their transactions locally
• Cloud computing is a variant of IT sourcing
• External Audit provides independent attestation regarding the fairness of the presentation of financial statements
• Substantive Test is an audit procedure that examines financial statements and supporting documentation for errors
• Accounting Information System (AIS) lacks a well-defined body of knowledge
• Nonfinancial transactions are events that do not meet the narrow definition of a financial transaction
• Information system is the set of formal procedures for collecting, storing, processing data into information, and distributing to users
• Data collection is the first operational stage in the information system
• Fraud Audit investigates anomalies and gathers evidence of fraud that may lead to criminal conviction
• Record is a complete set of attributes for a single occurrence within an entity class
• Feedback is a form of output sent back to the system as a source of data
• File is a complete set of records of an identical class
• Sarbanes-Oxley Act of 2002 established new corporate governance regulations and standards for public companies registered with the Securities and Exchange Commission
• Financial transactions are economic events that affect the assets and equities of the organization, reflected in accounts, and measured in monetary terms
• Data Attribute is the most elemental piece of potentially useful data in the database
• Functional segments derive from the flow of resources through the firm
• Timeliness is a critical factor in determining the usefulness of information
• Operations Management, Middle Management, and Top Management are the three management tiers
• Sales, Purchases, Invoices, Journal Entries, Cash Receipts, and Requisitions are at least 6 financial transactions
• Three major subsystems of AIS are Transaction Processing System (TPS), General Ledger/Financial Reporting System (GL/FRS), and Management Reporting System (MRS)
• Internal, External, and Fraud are the three types of audit
• Characteristics of useful information include relevance, timeliness, accuracy, completeness, summarization, and feedback
• Three fundamental tasks of Database Management are Storage, Retrieval, and Deletion
• Four Information Technology (IT) functions are Data Processing, Systems Development and Maintenance, Database Administration, and Network Administration
• Two types of data processing models are Centralized and Distributed