Chapter 1
The 2 levels of activities in the value chain.
Primary Activities
Inbound logistics, operations, outbound logistics, marketing and sales, Service
Support Activities
Firm infrastructure, Human resources, technology, purchasing.
Name 2 of the 4 different types of data processing activities.
CRUD
Creating
Reading
Updating
Deleting
Name the 3 common systems documentation tools.
Data Flow Diagram (DFD)
Flow chart
Business Process Diagrams
Name one of the advantages of Database Systems.
2. data sharing
3. Minimal data redundancy and data inconsistencies
4. data independence
5. cross-functional analysis
Facts that are collected, recorded, stored, and processed by an information system.
Data
There are 6 components of an AIS.
Name 2
1. People
2. Procedures and instructions
3. Data
4. Software
5. Information Technology
6. Internal controls and security measures
Data must be collected about 3 facets of each business activity. Name 1.
1. Each activity of interest.
2. The resource(s) affected by each activity.
3. The peopel who participate in each activity.
Name the 3 types of flowcharts
Document Flowchart
System Flowchart
Program Flowchart
The basic elements of data hierarchy, in hierarchical order.
Fields ~ Records ~ Files ~ Database
A system that collects, records, stores, and processes data to produce information for decision makers.
Accounting Information System
Name 2 of the 5 major business or transaction cycles.
1. Revenue Cycle
2. Expenditure Cycle
3. Production or Conversion Cycle
4. Human resources/payroll cycle
5. Financing Cycle
Provide the 4 steps of data processing cycle.
Data Input, Data Processing, Information output, and Data Storage.
Sarbanes-Oxley Act
The 3 anomalies that can be present when there is improper database organization.
update anomaly
insert anomaly
delete anomaly
A traceable path of a transaction through a data processing system from point of origin to final output, or backward from final output to point of origin.
Audit Trail
Name 3 of the 7 characteristics that make information both useful and meaningful.
1. Relevant 2. Reliable 3. Complete
4. Timely 5. Understandable
6. Verifiable 7. Accessible
The item about which information is stored in a record.
Entity
Explain one reason why it is important to have a working knowledge of DFDs and flowcharting.
1. SOX requires auditors to evaluate internal control systems. Data flow diagrams and flowcharts are the two most frequently used development and documentation tools used in practice. 2. since systems development is extremely complex, DFDs and flowcharts are tools that are used to create order from chaos and complexity. 3. documentation tools and concepts are covered on the CPA exam.
Provide 1 of the 4 guidelines used to develop a properly structured relational database.
1. Every column in a row must be single valued.
2. Primary keys cannot be null.
3. Foreign keys, if not null, must have values that correspond to the value of a primary key in another table.
4. All nonkey attributes in a table must describe a characteristic of the object identified by the primary key.
Narrative, flowcharts, diagrams, and other written materials that explain how a system works.
A frantic Barney Rubble lost a large sale because he could not access the system to verify the inventory was in stock and ready to be shipped. Which of the characteristics of useful information is absent in the situation described above?
Accessible
John Pablo works in the accounting department of a multinational manufacturing company. His job includes updating accounts receivable based on sales orders and remittance advices. His responsibilities are part of company's ___________cycle.
Revenue Cycle
Preimer Life Company is a life insurance company that collects, stores, prepares and provides customerized life insurance policy to customers in the Midwest. When a customer's information is received, it is recorded in a database and a ticket is provided to the policy underwriter . When the life insurance policy is issued, the database is updated so that it always reflects the correct amount of life insurance coverage and the length of the policy available to the customers. In a data flow diagram, which type of symbol would be used to represent the process of updating customers' life insurance records in the system?
Rectangle, Circle, Line & Arrow, 2 lines
Circle
Emma Kolb is a system analyst at a manufacturing company located in the Midwest. She has been asked to analyze the company's accounting information system and to recommend cost-effective improvements. After noting that the production and sales departments use database systems that are entirely separated, she recommends that they be combined. Implementation of her recommendation would benefit the company by contributing to data ____________.
Data integration
Following relational database creation rules to design a relational database that is third normal form (3NF), free from delete, insert, and update anomalies.
Normalization