AIS and Data Visualization Review

Final Exam Review Flashcards

Roles of accountants in AIS

Accountants in AIS serve as designers, managers, auditors, users, and advisors to ensure the system delivers accurate, reliable, and timely financial information

Useful information characteristics

Relevant, accurate, timely, complete, and understandable.

Goal of Information systems

Collect, process, store, and distribute information

Subsystems of AIS

Transaction Processing, General Ledger, Management reporting system, Financial reporting system

AIS vs MIS

AIS focuses on the financial integrity of the business while MIS is focused on helping managers with performance in the company

External users of information

External users of business information are individuals or groups outside the company—like investors, lenders, and government agencies—who use the data to assess performance, make decisions, or ensure compliance.

Subsidiary ledger purpose

A subsidiary ledger breaks down detailed account info (e.g., for each customer or supplier) supporting a general ledger total, and its digital equivalent is an accounting software or database that tracks these details automatically.

Data flow diagram vs system flowchart vs program flowchart

A Data Flow Diagram maps how data moves through a system, a System Flowchart shows the physical and logical flow of processes in a whole system, and a Program Flowchart breaks down the detailed logic of a specific program or algorithm.

Elements of the Fraud Triangle

Pressure, Opportunity, Rasionalization

Examples of control activities

Control activities like authorization, segregation of duties, access control, reconciliation, and physical controls help organizations ensure the accuracy, integrity, and security of their financial and operational processes.

Two subsystems of the revenue cycle

Sales order Processing, and Cash Reciepts

Who prepares the bill of lading

Shipping Dept

What doc starts the revenue cycle

Sales order

Docs prepared by the sales department

The sales department prepares documents like sales orders, sales quotes, sales invoices, and packing slips

Shipping Notice

A Shipping Notice is a document that notifies the customer that goods have been shipped, providing them with details like tracking information, shipping method, and expected delivery date.

Stock release copy

A Stock Release Copy is a document used to authorize the release of goods from inventory for shipment, ensuring that the correct items are picked and prepared for delivery to the customer.

Purpose of the sales invoice

The purpose of the sales invoice is to formally request payment from a customer for goods or services that have been delivered.

Good internal controls ensure what in the revenue cycle

Good internal controls in the revenue cycle ensure that sales, shipments, billing, and collections are accurate, authorized, and secure, leading to reliable financial reporting and reduced risk of loss or fraud.

Examples of weak internal controls

Weak internal controls, like poor segregation of duties, lack of approvals, or missing reconciliations, leave a business vulnerable to errors, fraud, and financial losses.

Receiving report

A Receiving Report is a document used to record the details of goods or materials received by a business from a supplier.

Purchase requisition

A Purchase Requisition is an internal document used by employees or departments to request the purchase of goods or services.

Purchase Order

A Purchase Order is a formal document sent by a buyer to a supplier, authorizing a purchase and outlining the details of the goods or services requested.

Open purchase order

An Open Purchase Order (Open PO) refers to a purchase order that has been issued but has not yet been fully fulfilled or closed

AP Voucher packet

An AP Voucher Packet includes the purchase order, receiving report, vendor invoice, payment approval, and accounting distribution, and is used to ensure that payments to vendors are properly authorized, verified, and documented.

Who receives copies of a purchase order

Copies of a purchase order are typically sent to the purchasing department, vendor, receiving department, accounts payable, warehouse/inventory control, and the requesting department to ensure the order is processed, received, and paid for accurately.

Who authorizes payment of inventory

The payment of inventory is authorized by the accounts payable manager or a senior executive, after verifying that the invoice, purchase order, and receiving report align correctly.

Role of cash disbursement clerk

The Cash Disbursement Clerk is responsible for processing and recording outgoing payments, ensuring proper authorization, maintaining accurate cash flow records, and reconciling bank accounts.

Functions should be segregated in the expenditure cycle

To maintain effective internal controls in the expenditure cycle, functions such as authorization of purchases, receiving goods, recording transactions, payment approval, cash handling, inventory management, and bank reconciliation should be properly segregated to prevent fraud, errors, and unauthorized actions.

Why goods are inspected and counted

Goods are inspected and counted during the expenditure cycle to ensure that the quantity and quality of the items received match the specifications outlined in the purchase order and that they meet the required standards for the business.

Personnel action form

A Personnel Action Form (PAF) is a document used to formally record and track changes to an employee’s employment status, such as promotions, transfers, or terminations, ensuring proper communication and documentation across departments

Asset disposal

Asset disposal refers to the process of removing or selling a company's assets that are no longer needed, outdated, or have become obsolete.

Biometric time clocks

Biometric time clocks are advanced time-tracking devices that use biometric identifiers (such as fingerprints, facial recognition, or retinal scans) to record and verify employees' attendance and work hours.

Magnetic swipe ID cards

Magnetic swipe ID cards are identification cards that contain a magnetic stripe on the back, which stores data that can be read when the card is swiped through a magnetic stripe reader

Proximity cards

Proximity cards are a type of contactless smart card used for access control and identification.

Mobile remote devices

Mobile remote devices are portable, wireless devices that allow users to access, control, or interact with systems or data remotely, often via internet or cellular connections.

Internal controls of the payroll system

Internal controls of the payroll system are processes and procedures that ensure accuracy, security, and compliance in payroll processing, preventing errors, fraud, and unauthorized access to sensitive employee information.

Internal controls of fixed asset system

Internal controls of the fixed asset system involve policies and procedures that ensure the accurate tracking, safeguarding, and proper financial reporting of company assets, preventing errors, theft, and unauthorized use.

Transactions of fixed asset system

Transactions in the fixed asset system involve purchasing, tracking, depreciating, and disposing of assets such as cars or buildings, with each step requiring proper documentation, authorization, and accounting entries to ensure accurate financial reporting and control over company assets.

Files needed for payroll audit trail

Files needed for the payroll audit trail include time cards, job tickets, payroll registers, and tax forms, which provide a detailed record of employee hours worked, wages earned, deductions made, and tax payments, ensuring payroll accuracy, compliance, and fraud prevention.

Production schedule

A production schedule is a detailed plan that outlines the timeline and sequence of activities involved in the manufacturing or production process

Safety stock

Safety stock is the extra inventory held by a company to mitigate the risk of stockouts due to uncertainties in demand or supply chain disruptions

Materials requisition

A materials requisition is a document used by an organization to request the materials or components needed for production or other business activities

The continuous process of production

The continuous process of production refers to a manufacturing method where production runs continuously, often without interruption, to produce large quantities of standardized products

Flexible manufacturing system

A Flexible Manufacturing System (FMS) is a production system designed to easily adapt to changes in the type and quantity of products being manufactured

Computer-integrated manufacturing

Computer-Integrated Manufacturing (CIM) is a system that uses computer technology to control and integrate all aspects of the manufacturing process, from design and production planning to assembly, testing, and distribution

Characteristics of lean manufacturing

Lean manufacturing is a production philosophy that focuses on minimizing waste while maximizing value. It aims to streamline processes, reduce costs, and improve product quality by eliminating inefficiencies and optimizing the use of resources.

Tasks of inventory control

Inventory control refers to the process of managing and overseeing the inventory within an organization to ensure that the right quantity of goods is available at the right time while minimizing excess stock and storage costs

The conversion cycle internal controls

Internal controls in the conversion cycle are designed to ensure efficient production, prevent fraud, ensure product quality, and manage resources effectively by implementing segregation of duties, authorization procedures, quality checks, and performance monitoring.

Responsibility Accounting

Responsibility accounting is a system of accounting in which individual managers are held accountable for the financial performance of the segments or departments they are responsible for within an organization.

Data Security

Data security refers to the practices, policies, and technologies designed to protect digital information from unauthorized access, corruption, theft, or loss

Who makes tactical planning decisions

Tactical planning decisions are made by middle-level managers who translate high-level strategic objectives into specific, actionable plans and initiatives within their departments or functional areas.

Financial reporting steps and order

The financial reporting steps include recording transactions, posting to the general ledger, preparing trial balances, making adjustments, preparing financial statements, closing entries, and final reporting to stakeholders, ensuring accurate and reliable financial information.

3 elements of problem structure

The three elements of problem structure are objectives (the desired outcomes), constraints (the limitations or restrictions), and alternatives (the possible solutions or courses of action).

Management Principles

Management principles are fundamental guidelines that help managers effectively plan, organize, lead, and control resources to achieve organizational goals and ensure smooth operations.

Internal control risks of FRS

The internal control risks of the Financial Reporting System include unauthorized access, data errors, and lack of segregation of duties, which can be mitigated by separating key roles like authorization, recording, and custody—though in smaller settings, some roles may be combined with strong oversight and review processes in place.

Risks of general ledger system

The General Ledger (GL) is the central record-keeping system for a company’s financial data. Since all financial reporting depends on the accuracy of the GL, any weaknesses or risks can have serious consequences, including financial misstatements, regulatory issues, and even fraud.

Characteristics of Big Data Analytics

Big Data Analytics is characterized by its ability to process massive volumes of diverse, fast- moving, and often unstructured data to generate accurate, actionable insights that drive strategic decisions.

Information that flows into the GL system

Information that flows into the General Ledger system comes from all major transaction cycles—including revenue, expenditures, payroll, inventory, and fixed assets—along with manual journal entries, ensuring a comprehensive and accurate record of the organization’s financial activities.

Categorical variables

Represent types or categories of data.

Quantitative variables

Are numerical and can be measured or counted.

Prescriptive analytics

Recommends actions to achieve desired outcomes

Descriptive analytics

Focuses on summarizing historical data to understand what has happened in the past.

Predictive analytics

Uses statistical models and machine learning to forecast future outcomes based on historical data.

Correlation/Relationship

Measures the strength and direction of a linear relationship between two quantitative variables.

Enclosure

Elements that are enclosed by a boundary (like a box, circle, or background shape) are perceived as being grouped together

Connection

Elements that are visually connected (e.g., with lines, arrows, or shapes) are perceived as related more strongly than elements with similar color or shape.

Proximity

Objects that are close to each other are perceived as part of the same group, even if they’re not similar in appearance.

Similarity

Elements that look alike (same color, shape, size, etc.) are perceived as part of the same group or pattern.

Iconic memory

Is a type of sensory memory that briefly holds visual information — like a snapshot of what you just saw.

Short term memory

Holds a limited amount of information temporarily for immediate use.

Long term memory

Stores information permanently or for a long time, and has virtually unlimited capacity.

Complementary color scheme

Uses two opposite colors on the color wheel to create contrast and vibrancy. Ex. Red and green, blue and orange, yellow and purple.

Color scheme

Is a planned combination of colors used in a design or artwork to create harmony, contrast, or a particular effect.

Color Symbolism

Refers to the cultural or emotional meanings attached to colors, which can vary between cultures.

Color psychology

Is the study of how colors affect human emotions and behavior.

Levels of data-ink ratios

High data ink ratio is good and means more ink is being used for data

Seasonality

Refers to recurring patterns or fluctuations in data that happen at regular intervals, typically due to time of year, holidays, or weather.

Ethos

Is an appeal to credibility or authority. It builds trust by showing that the speaker or source is knowledgeable and ethical.

Logos

Is an appeal to logic and reason. It uses facts, data, and clear arguments to persuade.

Pathos

Is an appeal to emotion. It aims to persuade by creating an emotional response in the audience.

Slope chart

Shows change between two points in time for multiple categories by connecting two values with a sloped line.

High vs low comfort with analytics

This refers to how comfortable a person or audience is with interpreting data and analytics.

Storyboard

Is a visual plan or sequence of the key points, visuals, and narrative flow for a data presentation or story.

Storytelling

With data is the process of communicating insights using data in a structured, engaging, and impactful way — combining visuals, narrative, and context.

Big associated number

Is a standout metric or value used to grab attention and emphasize the importance of the data story.