AIS chapter 1 Hall Questions and Answers 100% correct

AIS chapter 1 Hall Questions and Answers 100% correct AIS Specialized subset of information systems that process financial transactions attest function function performed by an expert who expresses an opinion regarding the presentation of financial statements. performed by Certified Public Accountants (CPA) auditing an independent attestation that expresses an opinion about the fairness of a company's financial statements. auditor must have a thorough understanding of AIS functions and internal controls. centralized data processing all data processing is performed by one or more large computers housed in a common data center that serves users throughout the organization. cloud computing location-independent computing whereby shared data centers deliver hosted IT services over the Internet commercial software available for both general accounting use and for industry specific applications, such as medical billing. sometimes called turnkey systems conceptual system involves specifying the criteria for identifying delinquent customers and the information that needs to be reported. custom software developed through a formal process called systems development life cycle data facts, which may or may not be processed (edited, summarized, or refined) and have no direct effect on a user's actions. data collection first operational stage in the information system. The objective is to ensure that event data entering the system are valid, complete, and free from material errors. data processing Examples include mathematical algorithms used for production scheduling applications, statistical techniques for sales forecasting, and posting and summarizing procedures used for accounting applications. data sources financial transactions that enter the information system from either internal or external sources. data storage medium to be used and the method for capturing and presenting the information. included in the physical system database physical repository for financial and non-financial data. database management involves three fundamental tasks: storage, retrieval, and deletion. discretionary reporting the organization can choose what information to report and how to present it distributed data processing users process their transactions locally. end users fall into two general groups enterprise resource planning comprised of thousands of small program modules. From this vast array of options the IT team selects those modules that support the organization's specific information and data processing needs. feedback a form of output that is sent back to the system as a source of data. financial transaction an economic event that affects the assets and equities of the organization, is reflected in its accounts, and is measured in monetary terms general ledger/financial reporting system produces the traditional financial statements, such as the income statement, balance sheet, statement of cash flows, tax returns, and other reports required by law general model for AIS describes all information systems, regardless of their underlying technology. The elements are end users, data sources, data collection, data processing, database management, information generation, and feedback independence Information reliability rests heavily on this concept information processed data that causes the user to take an action that he or she otherwise could not, or would not, have taken. information flows out from the organization to external users, such as customers, suppliers, and stakeholders who have an interest in the firm information generation the process of compiling, arranging, formatting, and presenting information to users information system the set of formal procedures by which data are collected, stored, processed into information, and distributed to users infrastructure as a service internal auditing an independent appraisal function established within an organization to examine and evaluate its activities as a service to the organization IT auditing IT-related tests of controls IT outsourcing Under this practice the organization sells its IT resources to a third-party outsourcing vendor MIS processes non-financial transactions that are not normally processed by traditional AIS. management reporting system provides internal management with special-purpose financial reports and information needed for decision making such as budgets, variance reports, and responsibility reports network a collection of interconnected computers and communications devices that allows users to communicate, access data and applications, and share information and resources. network administration responsible for the effective functioning of the software and hardware that constitute the organization's network. non-discretionary reporting the organization has few or no choices in the information it provides non-financial transactions events that do not meet the narrow definition of a financial transaction. physical system includes the data storage medium to be used and the method for capturing and presenting the information. platform as a service reliability determines the value of information to a user segments derive from the flow of resources through the firm software as a service stakeholders external entities with a direct or indirect interest in the firm. substantive test focus on data rather than process.