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Define AIS
Accounting Information Systems- is a collection of data and processing procedures that creates needed information for its users.
pg. 5
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Define Data
(the plural of datum) Raw facts about events that have little organization or meaning. Ex: Raw test scores.
pg. 5
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Define Information
Processed data that becomes useful or meaningful. Ex: Average of raw test scores
pg. 5
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Do raw data have o processed in order to be meaningful?
No. Depends on your needs.
pg. 6
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Define Audit Trail
Audit Trail is the path that data follow as they flow through an AIS. The raw data mark the starting point of an audit trail.
pg. 6
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Define Information Overload
Too much information can overwhelm its users possibly causing relevant information to be lost or overlooked.
pg. 7
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Define ERP
Enterprise Resource Planning- software package to integrate information subsystems into one application. It focuses on the business process of the organization as a whole.
pg. 7
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Define Predictive Analytics
A technique that takes advantage of data stored in data warehouses, to create systems that allow them to use their data to improve performance. Ex: 911 calls, police use info to predict where crimes will happen next.
pg. 8
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Define Knowledge Workers
workers that produce, analyze, manipulate, and distribute information about business activities instead of actually making products.
pg. 8
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Suspicious Activity Reporting (SAR)
laws now require accountants to report questionable financial transactions to the U.S. Treasury Department.
pg. 9
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Sarbanes-Oxley Act of 2002
- Created in response to corporate frauds.
- Ex: corporations cannot make personal loans to executives. Managers are required to implement and assess internal controls and auditors to evaluate those assessments.
pg. 13
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U.S. Patriot Act
Assigned after Sept. 11... acronym for "Providing appropriate Tools required to intercept and obstruct terrorism"
Pg. 14
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Financial Accounting information systems
provide relevant information to individuals and groups outside an organization's boundaries-e.g. investors, federal and state tax agencies, and creditors.
pg. 15
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REA Accounting
Resources Events Agents... the idea of also storing important non-financial information about resources, events, and agents in databases precisely because they are relevant to the decision-making processes of their users.
pg. 15
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Interactive Data
data that can be reused and carried seamlessly among a variety of applications or reports.
pg. 16
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Extensible business reporting language (XBRL)
the language of choice used for interactive data that require a language for standardization that "tags" the data at its most basic level.
pg. 16
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Managerial Accounting
Provide relevant information to organizational managers- i.e. users who are internal to a company or government agency.
pg. 17
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Cost Accounting
Part of managerial accounting specifically assists management in measuring and controlling the costs associated with an organization's various acquisition, processing, distribution, and selling activities. (Value added to the organization)
pg. 17
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(ABC) Activity-Based Costing system
Example of an AIS in the area of cost accounting. Assigning overhead costs based on the resources directly consumed by each activity and not on the basis of direct labor hours.
pg. 17
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(CPM)
Corporate Performance Measurement. Another ex. of AIS used in the area of cost accounting.
pg. 18
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