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30 Cards in this Set
- Front
- Back
AICPA Top Technology Initiatives
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1. Information Security Mgmt
- Information security always #1 |
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A system is...
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Group of interacting parts of components that serve a common purpose
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AIS creates...
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Needed information for users
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AIS Today
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- Financial and non-financial data
- Enterprise-wide information system (ERP) - Business process focused |
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Inputs to an AIS
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Collection of data from internal/external sources
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AIS Proceses
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Sorting, organizing, and calculating
- Data repository, files, databases |
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AIS Outputs
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Distribution of information for internal/external decision makers
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Are info systems always computerized?
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No - double entry ledgers, ex.
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Data
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Raw facts
No organization or meaning Beginning of audit trail ex. Sales price, part number |
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Information
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Processed data
Meaningful and useful to users ex. Net income, budget variances |
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AIS vs. ERP
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AIS:
Internal and external users Financial information ERP: Internal users Financial information Nonfinancial information |
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Problems with computerized systems
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1. Information overload
2. Inability to identify input and other errors 3. Difficult to follow audit trail |
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Whats new in AIS?
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- Suspicious activity reporting
- Countering terrorism - Corporate scandals in accounting - Sarbanes-Oxley and Patriot Acts - Interactive Data (XBRL) |
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Sarbanes-Oxley Act
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- CEOs must certify accuracy and completeness of financial statements
- Public companies must hire independent, NEW auditors to review controls - Section 404, requires companies to implement and asses internal controls, auditors evaluate those assesments |
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Financial accounting
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- Relevant information
- EXTERNAL parties - Financial statements |
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Financial Accounting Audit Trail
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- Traces the accounting cycle
- Data flow from input to output |
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Cost Accounting
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- Measure and Control Costs
(aquisition, processing, distribution, and selling activities) - AIS Examples: activity based costing, corporate performance measurement and business intelligence |
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Auditing Traditional Role
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- Evaluate accuracy of financial statements
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Auditing Present Role
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- Evaluate compliance with HIPAA
- IT evaluations and audits - Management consulting |
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Taxation
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- Software (example of AIS), create and evaluate tax strategies, transmit completed forms
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Professional usage
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- Research challenging questions
- Access more up-to-date information - Database access |
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Corporate Performance Measurement
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- Responsibility accounting system (trace to a person or department)
- Immediate corrective action |
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Balanced scorecard
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- Financial performance
- Customer knowledge - Internal business processes - Learning and growth |
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CISA
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Certified information systems auditor
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CISM
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Certified information security manager
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CFA
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Certified fraud auditor
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CIA
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Certified internal auditor
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IMA
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Institute of management accountants
- Largest association of management accountants in the US - CFA - CMA - Strategic finance - Management accounting quarterly - Strategic tech notes |
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AICPA
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American institute of certified public accountants
- CPA - Since 1887 - Journal of accountantcy |
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SB819
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California CPAs must meet 150 unit college education requirement
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