1
Q
5 Components of an Information System
A
- hardware
- software
- people
- network
- data
2
Q
Data vs. Information
A
- data is raw facts
* information is processed data that is useful for decision making
3
Q
Four Primary Roles in Business Operations
A
- process detailed data
- provide information used for making daily decisions
- provide information for developing business strategies
- take orders from customers
4
Q
What is the first step in a business processing transaction?
A
capture the data
5
Q
Data Capture Techniques
A
*manual entries vs. source data automation
6
Q
Data Accuracy =
A
GIGO
7
Q
What is the Accounting Information System?
A
- it is first and foremost a Management Information System
* it creates an audit trail for accounting transactions
8
Q
How are entries recorded?
A
*they are first recorded onto the general journal and then are summarized on the various ledgers
9
Q
Coding Types
A
- Sequence Code (101, 102, 103)
- Block Codes (1xx, 2xx, etc.)
- Group Codes (each number stands for something)
10
Q
Entity
A
subject of the stored information
11
Q
Attributes
A
specific item of interest for each entity
12
Q
Field
A
contains a single piece of information (attribute) of the entity
13
Q
Record
A
all attributes about a single instance of an entity
14
Q
Data Value
A
contents of fields
15
Q
File
A
records are grouped into files
16
Q
Master File
A
cumulative information and information that is relatively permanent
17
Q
Transaction File
A
similar to a journal, the transaction file stores individual transactions
18
Q
Database
A
files that are INTERRELATED AND COORDINATED
19
Q
Data Processing
A
Addition - new record
Updating - revisions to a master file
Deletion - removal of records from a database
20
Q
Methods for Data Processing
A
- batch processing
2. online real-time processing (OLRT)
21
Q
Information Output Types
A
- Documents (checks, purchase orders, etc.)
- Reports (internal or external periodicals)
- Query (request for specific data
22
Q
Benefit of Batch Processing
A
*can compare manual and computer-generated batch control total
23
Q
Centralized vs. Decentralized Processing
A
- centralized has enhanced data security and consistent processing
- bottlenecks, high costs, reduction in local accountability, increased vulnerability
24
Q
Periodic Scheduled Report
A
*made available on a regular basis to end users of the system
25
Exception Reports
*produced when a specific condition or exception occurs
26
Demand Reports
*available on demand when requested
27
Ad Hoc Reports
*one that does not currently exist but that can be created on demand, without having to get a software developer or programmer involved
28
Query
*a set of criteria that the end user can send to the system to extract all transactions or other information that meet these criteria
29
Push Report
*pushed to a computer when a specific action takes place
30
Dashboard Reports
*presents summary information necessary for management action (visual quick references)
31
XBRL
*XBRL tags define the data
32
Should technology decisions be an input or an output in the strategy process
INPUT
33
What types of events should be identified during the enterprise risk management process?
risks AND OPPORTUNITIES
34
Categories of Business Information Systems
1. Transaction Processing Systems
2. Management Information Systems (MIS)
3. Decision Support Systems (DSS)
4. Executive Information Systems (EIS)
35
Transaction Processing Systems
*process and record the routine daily transactions necessary to conduct business
36
Management Information Systems
*provides users predefined reports that support effective business decisions
37
Decision Support Systems
*extension of an MIS that provides INTERACTIVE tools to support decision making (aka EXPERT SYSTEM)
38
Executive Information Systems
* provide senior executives with immediate and easy access to internal and external information to assist in strategic decision making
* high level
*INTERNAL AND EXTERNAL
39
Systems Development Life Cycle
1. Systems Analysis
2. Conceptual Design
3. Physical Design (look at outputs first, then design the inputs; DEFINE DATA ELEMENTS)
4. Implementation and Conversion
5. Training
6. Testing
7. Operations and Maintenance
40
Prototyping vs. Waterfall
prototyping: entire process is repeated multiple times
waterfall: one step must be completed before moving on to the next
41
Information Systems Steering Committee
* traffic cops
* plan and oversee the information systems function and address the complexities created by functional and divisional boundaries
42
May want to also consider the input of _______ when designing an information system
external parties
43
5 Governance Objectives for IT
1. Strategic Alignment
2. Value Delivery
3. Resource management
4. Risk Management
5. Performance Management
44
Business Objectives for IT
1. effectiveness
2. efficiency
3. compliance
45
Requirements for Information as defined by COBIT
```
ICE RACE
I ntegrity
C onfidentiality
E fficiency
R eliability
A vailability
C ompliance
E ffectiveness
```
46
Domains and Processes of COBIT
Plan and Organize = Direct
Acquire and Implement = Solution
Deliver and Support = Service
Monitor and Evaluate = Ensure direction followed
47
Internal vs External Labels
```
Internal = written in machine-readable form
External = readable by humans
```
48
Segregation of Duties in IT
```
C ontrol team (internal auditors)
O perators
P rogrammer
A nalyst
L ibrarian
```
49
Systems Analyst
*determines systems requirements, integrates purchased applications, provides training, intermediary between system and users
50
Computer Programmer
Application Programmer: writing or maintaining application programs
System Programmer: focus is on the operating system
51
Computer Operator
* most likely will be automated
| * responsible for scheduling and running processing
52
IT Supervisor
*manages the functions and responsibilities of the IT department
53
File Librarian
* role, not title
| * store and protect programs and tapes from damage or unauthorized use
54
Data Librarian
*custody of and maintains the entity's data and that it is released only to authorized individuals
55
System Administrator
1. Database
2. Network (performance monitoring and troubleshooting)
3. Web (responsible for website)
56
Data vs. Database Administrator
```
data = responsible for data
database = responsible for access to the entire database
```
57
Data Input Clerk
inputs data
58
Hardware Technician
*sets up and configures hardware and troubleshoots hardware problems
59
End Users
*most enter in their own data into the information system
60
Son-Father-Grandfather Concept
*think about the diagram
61
Backup of Systems that Can and Can't be Shut Down
Can: files or databases that have changed since the last backup can be updated
Can't: applying a transaction log
62
Mirroring
*backup computer duplicates all of the processes and transactions on the primary computer
63
Digital Certificates
*certifies the identity of the owners of a particular public key
64
Digital Signatures vs. E-Signatures
* digital = asymmetric encryption
| * e-=legally binding signature
65
User Access Controls
*must involve HR and IT due to promotions and exits from the company
66
Types of Policies
1. Program-Level: used to create the security program
2. Program-Framework Policy: overall approach to computer security
3. Issue-Specific Policy: address specific ISSUES of concern
4. System-Specific Policy: address policy issues for specific system
67
EDI
Electronic Data Interchange
68
Mapping
*translating and determining the correspondence between data elements in an organization's terminology
69
Costs of EDI
1. legal costs
2. hardware costs
3. costs of translation software
4. costs of data transmission
70
VAN
Value Added Network
71
Biggest EDI Risk
unauthorized access
72
What type of processing does EDI use?
Batch processing
73
E-Commerce vs. EDI
e-commerce uses the public internet, uses faster OLRT and is less secure but less expensive
*VAN is more secure than the internet
74
Challenges Faced in Business Process Reengineering
```
tradition
resistance
time and cost requirements
lack of management support
skepticism
retraining
controls
```
75
According to the AICPA, electronic transactions reduce the opportunity for what?
human errors; there supposedly won't be any human errors
76
B2B vs. B2C
* B2C is less complex
* B2B is more complex
* B2B involve more than one participant
* B2B involve complex products
77
ERP
Enterprise Resource Planning
* cross-functional; one system
* promotes integration
* store information in a central repository
78
SCM
Supply Chain Management
| *planning, sourcing, making, delivery
79
CRM
Customer Relationship Management
* increase customer satisfaction
* provides automation and new customer services
80
EFT
Electronic Funds Transfer
81
Application Service Providers
* renting the programs
* lower costs, greater flexibility
* risks to the security and privacy of the organization's data; financial viability of the ASP, poor support by the ASP
82
Web 2.0
interaction
83
Mash-ups
Google Maps
84
Stand-alone Web Stores vs. Integrated Web Stores
1. Stand-alone: not integrated with an accounting system
| 2. Integrated: single software system with the accounting system
85
HTML
Hypertext Markup Language
86
HTTP
Hypertext Transfer Protocol
87
URL
uniform resource locator
88
Server
www
89
Top-level domain
.edu, .net
90
SSL
secure socket layer
91
Four Main Risks for Systems
1. Strategic Risk
2. Operating Risk
3. Financial Risk
4. Information Risk
92
Risk
possibility of harm or loss
93
Threat
*any eventuality that represents a danger to an asset ora capability
94
File-Level Access vs. File Attributes
File-Level: controls access (ready-only)
| Attributes: writing, reading, etc.
95
Steps in Disaster Recovery
1. assess the risks
2. identify mission-critical applications and data
3. develop a plan
4. determine the responsibilities of the personnel
5. TEST IT
96
Major Players in Disaster Recovery
1. organization
2. disaster recovery services provider
3. package vendors
4. hardware vendors
97
Types of Backups
Full: entire database
Incremental: only the data items that have changed
Differential: all changes made since the last backup `
98
Off-Site Disaster Locations
Hot Site
Warm Site
Cold Site
1 Becker BEC
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