Key Concepts in Accounting and Information Systems

A series of flashcards covering key concepts related to accounting information systems, data processes, and related vulnerabilities.

Data Processing Cycle

The process that involves operations performed on data to generate meaningful and relevant information.

Source Document

A document that serves as the starting point for collecting accounting data at the time of a transaction.

Master File

A permanent file of records that stores cumulative data about an organization.

General Journal

A journal used to record infrequent or non-routine transactions.

Control Account

The title given to a general ledger account that summarizes total amounts recorded in a subsidiary ledger.

Batch Processing

The process of accumulating transaction records into groups for processing at a regular interval.

Enterprise Resource Planning (ERP) System

A system that integrates enterprise-wide activities such as production, sales, and payroll.

Transaction File

A type of file that contains the individual business transactions that occur during a specific period.

Audit Trail

The path that allows a transaction to be traced from its origin to its output.

Turnaround Document

A type of document sent to an external party and then returned to the system as input.

Unintentional Acts

The greatest risk to information systems, often caused by human carelessness.

Cookie

A text file created by a website that stores user information on a hard drive.

Fraudulent Financial Reporting

A type of fraud that involves misrepresenting financial statements to mislead stakeholders.

Bribery

The act of offering or accepting something of value to influence official actions.

Bid Rigging

A form of fraud where a contract is promised to one party while competitors raise prices.

Ponzi Scheme

A scam that promises high returns in a short time but is actually a fraud.

Misappropriation of Assets

The theft of company assets by employees, including physical and digital assets.

Computer Fraud

A type of fraud that requires computer technology for execution.

Input Fraud

The most common type of computer fraud that involves altering input data.

Processor Fraud

Fraud that involves unauthorized system use, such as stealing computer processing time.

Computer Instruction Fraud

Fraud that occurs when someone tampers with software to perform unauthorized activities.

Data Fraud

Fraud that occurs when company data is illegally used, copied, or modified.

Hacking

An attack that involves unauthorized access, modification, or use of computer systems.

Social Engineering

Psychological tricks used to gain unauthorized access to systems.

Malware

Software designed to harm computers or users.

Pharming

The technique of redirecting a user to a fake website to steal sensitive information.

Keylogger

The term for secretly recording a user's keystrokes to steal credentials.

Botnet/Zombie Attack

The act of hijacking a computer to perform illicit activities without the owner’s knowledge.

Spamming

A form of attack that involves sending mass unsolicited messages, often for advertisements.

Trojan Horse

Malware that disguises itself as legitimate software while performing malicious actions.

Virus

Malware that is self-replicating and requires a host program to spread.

Worm

Malware that can self-replicate without needing a host program.

Bluesnarfing

The practice of stealing data from a Bluetooth-enabled phone.

Spoofing

A hacking method that involves altering parts of electronic communication to appear legitimate.

Software Piracy

The unauthorized copying or distribution of copyrighted software.

System

A set of interrelated components that interact to achieve a goal.

Goal Conflict

What occurs when a subsystem’s goals are inconsistent with the goals of another subsystem or the whole system.

Data

Raw facts stored in a system, such as numbers and names.

Information

Processed data that is meaningful and useful for decision-making.

Revenue Cycle

The cycle that involves selling goods or services for cash or a promise to receive cash in the future.

Human Resources/Payroll Cycle

The cycle that includes hiring, training, and compensating employees.

Production or Conversion Cycle

The name of the cycle where raw materials are transformed into finished goods.

Accounting Information System (AIS)

The main role of an AIS in a business is providing information for decision-making.

Marketing and Sales

The type of activity in the value chain that includes advertising and selling products.

Transaction Processing

The process that involves capturing transaction data and generating output like financial statements.

Source data automation

Devices that capture transaction data in machine-readable form at the time and place of their origin.

General journal

Used to record infrequent or nonroutine transactions, such as loan payments and end-of-period adjusting and closing entries.

Fraud

Also known as a white-collar crime.

Corruption

Dishonest conduct by those in power, often involving actions that are illegitimate, immoral, or incompatible with ethical standards.

Computer Instruction Fraud

Includes tampering with company software, copying software illegally, using software in an unauthorized manner, and developing software to carry out an unauthorized activity.

Reports

Used by employees to control operational activities and by managers to make decisions and formulate business strategies.

Database

A set of interrelated, centrally controlled data files that are stored.

File

A set of logically related records.

Field

The portion of a data record where the data value for a particular attribute is stored.

Chipping

Planting a small chip that records transaction data in a legitimate credit card reader.