Accounting Information Systems – Midterm Study Guide

These flashcards cover key concepts from the Accounting Information Systems midterm study guide, focusing on definitions and explanations relevant to the subject matter.

Data

Raw, unprocessed facts collected from transactions that lack meaning until analyzed.

Information

Processed data organized to be meaningful and useful for decision-making.

Data Flow Diagram (DFD)

Illustrates how data moves through a system, including elements like external entities and processes.

Input Documents

Documents that collect data for system entry, such as sales orders and purchase requisitions.

Output Documents

Documents that display processed results, like invoices and financial reports.

Risk Assessment

Identifying and analyzing potential risks to business goals.

Control Environment

Foundation for all internal control components that sets the organization’s tone.

Audit Trail

Traceable record showing transaction flow from origin to final output.

Cost-Benefit Concept

A principle stating that a control or system should only be implemented if benefits outweigh costs.

Application Software

Software performing specific accounting or business tasks, like QuickBooks and ERP Systems.

Information Overload

When data exceeds one’s capacity to process effectively.

Backup Procedures

Steps taken to ensure data recovery in case of failure or disaster.

Cloud Computing

Internet-based access to computing resources, available in service models like IaaS and SaaS.

Preventative Controls

Controls that stop issues before they occur, such as firewalls and strong passwords.

General Controls

Controls that apply to all IT systems, including access rights and change management.

Integrated Security Policies

A comprehensive framework combining logical, physical, administrative, and network security measures.

Data Flow

The movement of data between entities, processes, and data stores.

COSO

A framework for internal control and risk management with five components.

COBIT

A framework for IT governance and management focused on control, risk, and value alignment.

Flowcharting Rules

Guidelines for creating visual maps of processes or data flows.