AIS 2

• Sequential Structure:

  • All records in the file lie in contiguous storage spaces in a specified sequence (ascending or descending) arranged by their primary key
• Mnemonic Codes:

  • Alphabetic characters in the form of acronyms and other combinations that convey meaning
• Relative Address Pointer:

  • Contains the relative position of a record in the file
• Product documents:

  • Result of transaction processing
• Audit Trail:

  • Tracing transactions from source documents to the financial statements
• Production System:

  • Involves the planning, scheduling, and control of the physical product through the manufacturing process
• General Ledger:

  • Summarizes the activity for each of the organization’s accounts
• Payroll System:

  • Collects labor usage data for each employee, computes the payroll, and disburses paychecks to the employees
• Document:

  • Provides evidence of an economic event and may be used to initiate transaction processing
• General Journal:

  • Used to record nonrecurring, infrequent, and dissimilar transactions
• Special Journals:

  • Used to record specific classes of transactions that occur in high volume
• Ledgers:

  • A book of accounts that reflects the financial effects of the firm’s transactions after they are posted from the various journals
• Transactions:

  • May flow through a system in batches (groups) rather than as single events
• Program Flowchart:

  • Provides essential details for conducting IT application audits
• Accountants:

  • Sometimes use program flowcharts to verify the correctness of program logic
• Master File:

  • Contains account data
• Data Flow Diagram:

  • Uses symbols to represent the entities, processes, data flows, and data stores that pertain to a system
• Entities:

  • In a DFD, represent objects that lie outside the system being modeled
• Cardinality:

  • The degree of the relationship
• Entity Relationship Diagram:

  • A documentation technique used to represent the relationship between business entities
• System Flowchart:

  • The graphical representation of the physical relationships among key elements of a system
• Batch Processing:

  • Involves gathering transactions into groups or batches then processing the entire batch as a single event
• Account Number:

  • Used to search the AR master file and retrieve the corresponding AR record
• Inventory Number:

  • Used to search for the corresponding record in the inventory master file
• Dreadlock:

  • Happens when one process places a lock on one or more of the records it needs for processing, but has not locked all of them
• Sequential Codes:

  • Represent items in some sequential order (ascending or descending)
• Block Codes:

  • Represent whole classes of items by restricting each class to a specific range within the coding scheme
• Real-time Processing:

  • Processes individual transactions continuously as they occur
• Group Codes:

  • Used to represent complex items or events involving two or more pieces of related data
• Expenditure Cycle:

  • One of the 3 subsystems of transaction processing system
• Conversion Cycle:

  • One of the 3 subsystems of transaction processing system
• Revenue Cycle:

  • One of the 3 subsystems of transaction processing system
• Source Document:

  • One of the 3 types of documents
• Product Document:

  • One of the 3 types of documents
• Turnaround Document:

  • One of the 3 types of documents
• Digital Accounting Records:

  • Include Master File, Transaction File, Reference File, and Archive File
• Two types of transaction processing models:

  • Batch Processing and Real-time Processing
• Physical Address Pointer:

  • One of the three types of pointers
• Logical Key Pointer:

  • One of the three types of pointers
• Manual Accounting Records:

  • Include documents, audit trail, ledger, and journal