Module 1: Accounting Systems, Transaction Processing and Internal Control

These flashcards cover key terms and concepts related to accounting systems, transaction processing, internal control, and aspects of fraud.

Globalisation

The process of interaction and integration among people, companies, and governments worldwide.

Deregulation

The reduction or elimination of government rules controlling how businesses can operate.

Metcalfe's Law

The theory that the value of a network increases exponentially as more users join.

Moore's Law

The observation that the number of transistors on a microchip doubles approximately every two years.

Goal conflict

Occurs when components act in their own interest without regard for the overall goal.

Goal congruence

Occurs when components acting in their own interest contribute toward the overall goal.

Data

Facts that are collected, recorded, stored, and processed.

Information

Processed data that can be used for decision-making.

Data overload

A state when too much information hinders decision-making.

AIS (Accounting Information System)

A system that collects, processes, and stores financial and accounting data.

Transaction

An agreement between two entities to exchange goods or services or any event that can be measured in economic terms.

Nexus of contracts

A concept where a firm is seen as a network of contracts among various stakeholders.

Revenue Cycle

The set of activities and processes associated with the sale of goods and services.

Expenditure Cycle

The set of activities and processes associated with purchasing goods and services.

Internal Control

Processes set up by an organization to ensure the integrity of financial and accounting information.

Fraud Triangle

A model that explains the three key elements that lead to fraud: opportunity, pressure, and rationalization.

Social engineering

Psychological tricks used to gain confidential information from individuals.

Malware

Any software designed to harm or exploit any programmable device or network.

Hacking

Unauthorized access, modification, or use of a computer system or device.