EXAM 2 - TERMS WITH CH 18

analytics mindset

A way of thinking that centers on the correct use of data and analysis for decision making.

automation

The application of machines to automatically perform a task once performed by humans.

big data

Data sets characterized by huge amounts (volume) of frequently updated data (velocity) in various formats (variety) for which the quality may be suspect (veracity).

bot

Autonomous computer program designed to perform a specific task.

dark data

Information the organization has collected and stored that would be useful for analysis but is not analyzed and is thus generally ignored.

data lake

Collection of structured, semi-structured, and unstructured data stored in a single location.

data marts

Data repositories that hold structured data for a subset of an organization.

data owner

The person or function in the organization who is accountable for the data and can give permission to access and analyze the data.

data storytelling

The process of translating often complex data analyses into more easy to understand terms to enable better decision making.

data swamps

Data repositories that are not accurately documented so that the stored data cannot be properly identified and analyzed.

data variety

The different forms data can take.

data velocity

The pace at which data is created and stored.

data veracity

The quality or trustworthiness of data.

data visualization

Use of a graphical representation of data to convey meaning.

data volume

The amount of data created and stored by an organization.

delimiter

Character, or series of characters, that marks the end of one field and the beginning of the next field.

descriptive analytics

Information that results from the examination of data to understand the past, answers the question "what happened?"

diagnostic analytics

Information that attempts to determine causal relationships, answers the question "why did this happen?"

ETL process

A set of procedures for blending data. The acronym stands for extract, transform, and load data.

flat file

Text file that contains data from multiple tables or sources and merges that data into a single row.

metadata

Data that describes other data.

mindset

A mental attitude, a way of thinking, or a frame of mind.

predictive analytics

Information that results from analyses that focus on predicting the future, answers the question, "what might happen in the future?"

prescriptive analytics

Information that results from analyses to provide a recommendation of what should happen, answers the question, "what should be done?"

robotic process automation (RPA)

Computer software that can be programmed to automatically perform tasks across applications just as human workers do.

semi-structured data

Data that has some organization but is not fully organized to be inserted into a relational database.

structured data

Data that is highly organized and fits into fixed fields.

text qualifier

Two characters that indicate the beginning and ending of a field and tell the program to ignore any delimiters contained between the characters.

unstructured data

Data that has no uniform structure.

Analytical Review

Examining relationships between data sets to identify unusual trends or abnormalities.

Application Controls

Ensure accuracy, completeness, validity, and authorization of data in application programs. Contrast with general controls.

Audit Committee

Independent board members overseeing financial reporting, compliance, internal control, and auditors.

Authorization

Restricting access and actions of authenticated users.

Background Check

Verifying a prospective or current employee’s credentials and history.

Belief System

Communicates company values and vision to inspire employees.

Boundary System

Encourages ethical behavior by setting behavioral limits.

Change Management

Ensures smooth and efficient system changes.

Chief Compliance Officer (CCO)

Oversees compliance with SOX and other regulations.

Collusion

Cooperation to bypass internal controls.

COSO

A group of professional organizations that developed internal control frameworks.

Computer Forensics Specialists

Experts in preserving and analyzing digital evidence.

Computer Operators

Ensure proper data input, processing, and output.

Computer Security Officer (CSO)

Monitors system security and reports misuse.

Control Activities

Policies and procedures to ensure control objectives are met.

Control Environment

Organizational culture influencing internal control.

COBIT

Framework for IT security and control benchmarking.

Corrective Controls

Identify and fix problems and recover from errors.

Data Control

Manages data flow, input/output reconciliation, and error handling.

Data Processing Schedule

Timetable for data processing tasks.

Detective Controls

Identify issues not prevented, e.g., reconciliations.

Diagnostic Control System

Tracks performance against goals for feedback.

Digital Signature

Encrypted hash for data integrity.

Expected Loss

Product of potential loss and likelihood of a threat.

Exposure/Impact

Potential dollar loss from a threat.

FCPA

Prevents bribery of foreign officials and mandates internal controls.

Forensic Investigators

Fraud specialists with law enforcement or certification backgrounds.

Fraud Hotline

Anonymous reporting channel for fraud.

General Authorization

Routine transaction handling without special approval.

General Controls

Ensure system stability and management. Contrast with application controls.

Inherent Risk

Risk level without internal controls.

Interactive Control System

Engages managers in strategic decision-making.

Internal Control—Integrated Framework (IC)

COSO framework for evaluating internal controls.

Internal Controls

Processes ensuring control objectives are met.

Likelihood/Risk

Probability of a threat occurring.

Network Managers

Maintain proper network operations.

Neural Networks

Systems mimicking brain learning via interconnected processors.

Policy and Procedures Manual

Guide for business practices and transaction handling.

Postimplementation Review

Evaluates new systems after implementation.

Preventive Controls

Deter issues before they arise.

Programmers

Develop and test software based on analyst designs.

Project Development Plan

Outlines project requirements and execution.

Project Milestones

Progress checkpoints comparing actual vs. estimated timelines.

PCAOB

Regulates auditing profession under SOX.

Residual Risk

Remaining risk after controls are applied.

Response Time

Time between query and system response.

Risk Appetite

Acceptable risk level aligned with strategy.

SOX

Enhances transparency, internal controls, and fraud prevention.

Security Management

Protects systems from threats.

Segregation of Accounting Duties

Divides authorization, custody, and recording.

Segregation of Systems Duties

Divides authority in IT functions.

Specific Authorization

Special approval for certain transactions.

Steering Committee

Oversees information systems planning and execution.

Strategic Master Plan

Long-term project roadmap.

System Performance Measurements

Metrics like throughput, utilization, and response time.

Systems Administrators

Ensure smooth system operations.

Systems Analysts

Identify user needs and design systems.

Systems Integrator

External party managing system development.

Threat

Potential adverse event affecting AIS or the organization.

Throughput

Useful work done or good units produced over time.

Users

Individuals who interact with the system for transactions and outputs.

Utilization

Percentage of time a system is actively used.

accounts receivable aging report

A report listing customer account balances by length of time outstanding. The report provides useful information for evaluating current credit policies, for estimating bad debts, and for deciding whether to increase the credit limit for specific customers.

back order

A document authorizing the purchase or production of items that is created when there is insufficient inventory to meet customer orders.

balance-forward method

Method of maintaining accounts receivable in which customers typically pay according to the amount shown on a monthly statement, rather than by individual invoices. Remittances are applied against the total account balance, rather than specific invoices.

bill of lading

A legal contract that defines responsibility for goods while they are in transit. It identifies the carrier, source, destination, shipping instructions, and the party (customer or vendor) that must pay the carrier.

cash flow budget

A budget that shows projected cash inflows and outflows for a specified period.

credit limit

The maximum allowable credit account balance for each customer, based on past credit history and ability to pay.

credit memo

A document, approved by the credit manager, authorizing the billing department to credit a customer's account. Usually issued for sales returns, for allowances granted for damaged goods kept by the customer, or to write off uncollectable accounts.

customer relationship management systems (CRM)

Software that organizes information about customers in a manner that facilitates efficient and personalized service.

cycle billing

Producing monthly statements for subsets of customers at different times. For example, each week monthly statements would be prepared for one-fourth of the customers.