ACCT 307 MT CH 1, 2

Vocabulary flashcards covering AIS fundamentals, documentation tools, document flowcharts, system flowcharts, data flow diagrams, and software tools based on lecture notes.

Accounting Information System (AIS)

A system that collects, records, stores, and processes data to produce useful information for decision makers.

Data

Raw and unprocessed transaction data, such as sales orders.

Information

Processed data that is useful for decision-making, such as management reports and financial statements.

AIS Input Component

The major component of an AIS consisting of raw transaction data.

AIS Processing Methods

The component of an AIS involving sorting, organizing, calculating, and applying accounting procedures.

AIS Output Component

The major component of an AIS that produces useful information, such as financial statements and reports.

Financial AIS Structure

A process flow that takes source document inputs, performs transaction processing via journals, ledgers, and trial balance, and outputs financial statements and external reports.

Source Documents

Input documents in an AIS, such as sales invoices and payroll time cards, used to record initial transaction data.

CPA Exam AIS Section

The Information Systems and Controls section of the CPA exam where AIS topics are tested.

Systems Documentation

A vital part of any AIS that includes flowcharts, data flow diagrams, narratives, and other written communications describing inputs, processing, and outputs.

Document Flowchart

A graphical documentation tool that traces the physical flow of documents through an organization, from creation and review to approval, storage, and distribution.

Document Flowchart Initial Step

Identifying the different departments or groups that handle the documents of a particular system.

Keying Operation Symbol

A document flowcharting symbol used to signify an operation performed by keying in data.

Document Symbol

A standard flowchart symbol used to represent a physical document in a process flow.

Multiple Copies Symbol

A flowchart symbol depicting multiple overlapping document rectangles, used to represent multiple copies of a specific document.

Manual Operation Symbol

A document flowcharting symbol representing an operation performed manually by a person.

Flowchart Connector

A symbol used between two points on a flowchart to connect them and avoid clutter, using the same letter or number.

Permanent File Symbol

A flowchart symbol representing a permanent file of manual documents, labeled with A, N, or D to indicate filing order.

'A' Filing Designation

A letter designation inside a permanent file symbol indicating that manual documents are filed alphabetically.

'N' Filing Designation

A letter designation inside a permanent file symbol indicating that manual documents are filed numerically.

'D' Filing Designation

A letter designation inside a permanent file symbol indicating that manual documents are filed chronologically.

Flowchart Annotation

An open rectangle symbol attached by a dashed line used to provide additional explanation or clarity in a flowchart.

Document Flowcharting Guidelines

Rules that include identifying all departments involved, classifying activities department-wise, numbering documents, accounting for every copy, using matching connectors, and annotating for clarity.

System Flowchart

A flowchart that depicts the electronic flow of data and processing steps in an AIS, demonstrating relationships among inputs, processing, and output.

National Bureau of Standards

The organization that standardized the set of symbols used in system flowcharts to describe transaction processing procedures.

Terminator Symbol

A rounded symbol in a system flowchart representing the start or stop of a process flow.

Computer Processing Symbol

A rectangular symbol in a system flowchart representing a computer processing operation.

Screen Display Symbol

A system flowchart symbol representing an electronic display screen or input/output on a display monitor.

On-line Storage Symbol

A cylindrical symbol in a system flowchart representing on-line data storage.

Payroll System Flowchart

A system flowchart depicting time cards and payroll changes fed into a computer using a payroll program, interacting with a payroll master file to output paychecks and reports.

Sandwich Rule

A system flowcharting guideline stating that a process symbol must always be placed between an input symbol and an output symbol.

System Flowcharting Reading Direction

The standard orientation guideline dictating that system flowcharts should be arranged to read from top to bottom and left to right.

Data Flow Diagram (DFD)

A graphical tool primarily used in systems development to analyze an existing system or plan a new system by depicting data flows.

DFD Source or Destination Symbol

A square or rectangle in a data flow diagram representing an external entity that is a data source or data destination.

DFD Process Symbol

A circle or bubble in a data flow diagram indicating a task or processing action performed by the system.

DFD Data Store Symbol

Two parallel horizontal lines in a data flow diagram representing stored data, usually a file.

DFD Data Flow Line Symbol

A line with an arrow in a data flow diagram indicating the direction of data movement.

Context Diagram

A top-level or high-level DFD that provides an overall picture or summary overview of an application or system.

DFD Decomposition

The act of exploding data flow diagrams into lower levels (level 0 to level N) to create more detail and link them in a hierarchy.

Level 0 Logical DFD

A diagram created by subdividing a context diagram into major operational processes, data stores, external entities, and data flows.

Level 1 Logical DFD

A diagram created by exploding a specific process from a Level 0 DFD into sub-processes for further detail.

Seven Process Rule

A DFD guideline stating that each DFD should contain no more than 7 processes (bubbles).

DFD Process Naming Convention

The guideline requiring each process in a DFD to be given a sequential number and a verb describing the task performed.

DFD Labeling Rule

The principle that different data flows must be given different names to clearly show what data go where.

DFD Data Store Flow Rule

The observation that most data stores in a DFD have data flows moving both into and out of them.

AutoShapes

A feature in Microsoft Word, Excel, and PowerPoint providing graphic symbols and logic diagrams for system documentation.

CASE Tools

Computer-assisted Software Engineering tools that provide advanced graphical documentation capabilities to reduce time and cost when creating high-quality system documentation.

Rapid Application Development (RAD)

A system development methodology supported by CASE tools through fast, high-quality documentation generation.

Sarbanes-Oxley Act of 2002

Federal legislation requiring companies to comply with internal control evaluations and AIS documentation standards.

Audit Trail

A feature of AIS documentation that allows auditors to trace transactions through business processes for internal control and verification.