Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
76 Cards in this Set
- Front
- Back
Corporate Governance |
asystem of checks and balances whereby a company’s leadership is heldaccountable for building shareholdervalue and creatingconfidence in the financial reporting processes |
|
Tone at the Top |
setof values and behaviors in place for the corporate leaders |
|
Stakeholders |
areall of the different people who have some form of involvement or interest inthe business |
|
Shareholders |
ow a portion, or share, of the corporation. |
|
Board of Directors |
elected by the shareholders to direct the corporation |
|
Audit Committee |
a subcommittee of the board of directors. Responsible for financial matters, including reporting, controls, and the audit function |
|
Management |
often divided into layers; top management, middle management, and supervisors. |
|
Employees |
carry out the day-to-day operations and administrative functions of the company |
|
Internal Auditors |
employees of the corporation who help management establish and monitor internal controls by continuously looking for "red flag." |
|
Communities |
have a stake in those corporations because of their impact on social, environmental, charitable, and employment practices in their areas |
|
Investors |
those who have an ownership interest in the company or who consider obtaining an ownership share |
|
Creditors |
those who help finance the company by lending money |
|
Customers and Suppliers |
involved with the company day-to-day basis by buying and selling, respectively. |
|
External Auditors |
lend credibility to the financial statements and are responsible for evaluation whether or not the company's financial information is prepared according to established accounting rules |
|
Regulators |
they are responsible for the laws and guidelines that govern the company |
|
Management Oversight |
Policiesand procedures in place to lead the directorship of the company |
|
Features of Effective Leaders |
1. Recruiting 2. motivating 3. evaluation 4. problem solving 5. decision making |
|
Internal Controls and Compliance |
address the selection and development of the organization's internal stakeholders, and dictate the manner in which rights and responsibilities are assigned to them and ensure that the company is fulfilling its obligations with respect to adherence to corporate policies and procedures, accounting conventions, and regulatory requirements |
|
Financial Stewardship |
refers to the manner in which an agent handles the affairs and/finances of another |
|
Earnings Management |
manipulatingfinancial information |
|
Ethical Conduct |
Integrity,fairness, and accountability are the underlying concepts in each of the rolesof corporate governance |
|
Strategic Management |
Process of determining the strategic vision for the organization, developing the long-term objectives, creating the strategies that will achieve the vision and objectives, and implementing those strategies. |
|
IT Governance |
[A]structure of relationships and processes to direct and control the enterprise in order to achieve the enterprise’s goals by adding value while balancing riskversus return over IT and its processes.IT governance provides the structure that linksIT processes, IT resources and information to enterprise strategies and objectives |
|
Systems Development Life Cycle (SDLC) body |
a systematic process to manage the acquisition,design, implementation, and use of IT systems |
|
IT Governance Committee |
Group of senior manager selected to oversee the strategic management of IT |
|
Systems Planning |
the evaluation of long-term, strategic objectives and the prioritization of the IT systems in order to assist the organization in achieving its objectives. |
|
Systems Analysis |
study of the current system to determine the strength and weaknesses and the user needs of that system |
|
Systems Design |
the creation of the system that meets user needs and that incorporates the improvements identified by the system design phase |
|
Systems Implementation |
the set of steps undertake to program, test, and activate the IT systems as designed in the system design phase |
|
Operation and Maintenance |
the regular, ongoing functioning of the IT system and the processes to fix smaller problems. or bugs in the IT system. |
|
Feasibility Study |
Examining the match of IT systems to strategic objectives, the IT governance committee should evaluate the feasibility of each competing proposal |
|
Technical Feasibility |
Assessment of the realism of the possibility that technology exists to meet the need identified in the proposed change to the IT system |
|
Operational Feasibility |
Assessment of the realism of the possibility that the current employees will be able to operate the proposed IT system |
|
Economic Feasibility |
assessment of the costs and benefits associated with the proposed IT system |
|
Schedule Feasibility |
assessment of the realistic possibility that the proposed IT system can be implemented within a reasonable time |
|
Assurance Services |
Accountingservices that improve the quality of information |
|
Most common assurance service |
Audit |
|
Main Purpose of the Audit |
toassure users of financial information about the accuracy and completeness ofthe information |
|
Compliance Audits |
determine whether the company has complied with regulations and policies established by contractual agreements, governmental agencies, company management, or other high authority |
|
Operational Audits |
asses operating policies and procedures for efficiency and effectiveness |
|
Financial Statement Audits |
determine whether the company has prepared and presented its financial statements fairly, and in accordance with established financial accounting criteria |
|
IT Auditors |
specialize in information systems assurance, control, and security, and they may work for CPA firms, government agencies, or with internal audit group for any type of business organizaiton |
|
Information Risk |
thechance that information used by decision makers may be inaccurate |
|
Generally Accepted Auditing Standards (GAAS) |
broad guidelines for an auditor's professional responsibilities |
|
PublicCompany Accounting Oversight Board (PCAOB) |
organized in 2003 for the purpose of establishing auditing standards for public companies in the United States |
|
Auditing Standards Board (ASB) |
Prior to the PCAOB, standard-setting was their responisbility |
|
International Audit and Assurance Standards Board (IAASB) |
established by the International Federation of Accountants (IFAC) to set International Standards on Auditing that contribute to the uniform application of auditing practices on a worldwide basis |
|
Internal Auditing Standards Board (IASB) |
issue standards that pertain to attributes of internal audit activities, performance criteria, and implementation guidance |
|
Information Systems Audit and Control Association (ISACA) |
issues information systems auditing standards that provide guidelines for conduction the IT audit |
|
Purchase Order |
the form designating an order from the customer's perspective |
|
Sales Order |
the form designating an order from the seller's perspective |
|
Price List |
the entire set of preestablished and approved prices for each product |
|
Credit Limit |
the maximum dollar amount that a customer is allowed to carry as an accounts receivable balance |
|
Pick List |
documents the quantities and descriptions of items ordered |
|
Packing Slip |
prepared by warehouse personnel lists all items included in a shipment |
|
Bill of Lading |
agreement between the company and the carrier |
|
Shipping Log |
a chronological listing of shipments that allows management to track the status of sales and to answer customer inquiries regarding order status |
|
Sales Invoice (Bill) |
provided details of the sale and requests payment |
|
Sales Journal |
special journal that records sales transactions |
|
Receiving log |
lists the chronological sequence of all returned items, and a receiving reports records the quantity received |
|
Receiving report |
source document completed by personnel in receiving dock that documents the quantity and condition of items received |
|
Credit memorandum |
prepared to document the return and to adjust the amount of the customer's credit status |
|
6 controls and risks in Sales Processes |
1.Authorizationof transactions 2.Segregationof duties 3.Adequaterecords and documents 4.Securityof assets and documents 5.Independentchecks and reconciliation 6.Cost-benefitconsiderations |
|
Authorization of Transactions |
certain designated individuals within the company should be assigned the authority to develop sales return policies, authorize sales returns, and approve credit memos. |
|
E-commerce systems |
incorporate electronic processing of sales[related activities, and generally, e-commerce sales processes are transacted over the internet |
|
Electronic Data interchange |
systems communicate sales documents electronically with a standard business format |
|
Transaction Processing Systems |
Whena purchase occurs, the information resulting from that purchase must flow into, thepurchase recording systems, theaccounts payable and cash disbursement systems, and theinventory tracking systems |
|
Purchase Requisition |
prepared to document the need and request that the specific items and quantities be purchased |
|
Purchase Order |
document issued to a seller by a buyer that indicates the details for products or services that the seller will provide to the buyer |
|
Purchases Journal |
chronological listing of all purchase orders issued to vendors |
|
Blind Purchase Order |
includes information from the purchase order, but it omits data about the price and quantity of the items ordered |
|
Packing Slip |
Intended to show quantities and descriptions of items included in the shipment, but it does not generally includ eprices |
|
Receiving Report |
detailing the contents and condition of the receipt |
|
Receiving Log |
sequential listing of all receipts |
|
Cutoff |
the date for the end of the accounting period |
|
Accounts Payable subsidiary ledger |
includes the detail of amounts owed to each vendor |