Summary
Summary Infos 242 Term 4 notes
- Course
- Information Systems 242
- Institution
- Stellenbosch University (SUN)
Infos 242 notes for the semester
[Show more]
1 review
By: samstuart • 2 year ago
Content preview
term 41
, Table of Contents
o APPLICATION CONTROLS THEORY ............................................................................. 3
o LESSON 8: Revenue Cycle ......................................................................................... 9
o RECEIPTS CYCLE ...................................................................................................... 33
o INTEREST ON OVERDUE DEBTORS ........................................................................... 56
o INVENTORY CYCLE & INVENTORY COUNT ................................................................ 58
o BANK & CASH CYCLE: BANK RECONCILIATION ......................................................... 63
2
,o APPLICATION CONTROLS THEORY
Chapter 5:
o Introduction to risks and internal controls in a computerized environment
• Computers have a large variety of purposes within a company
• Valuable resource so the company should secure it
• Computers are included in strategic planning
• Different systems have similar generic risks
• Internal controls and principals must be implemented to address risks
• Impacts the following: how business is done, client interactions, financial reporting, operations control
• Not only used for the processing of information
• Supports the decision-making process
o Important concepts:
network = 2 or more connected computers
• LAN = Local Area Network = connected in 1 location eg: a building
• WAN = Wide Area Network = connected in several geographical locations eg: different cities
o Hardware
• Central Processing Unit, Motherboard, RAM, Power cable, Printer, keyboard, screen, etc.
o Software Types:
• Operating / system software:
- Makes sure the hwardware functions and it is the interface between user hardware and software.
- Users are not aware of these activities performed.
è Windows , Linux
• Application software:
- executes specific functions required by the user
è Pastel, Excel , Turbocash
o Database
• Transaction files (transaction details for individual transactions)
• Masterfiles (permanent & cumulative totals/balances)
• Refer figure 5.1 for visual representation
o Transaction files
• Batch processing = Supplier invoice
• Real time processing = Goods receive note (GRN)
• Traction files = capturing of transaction information per individual transaction
• Batch processing = provide instruction to update (many transactions together)
• Master files: permanent info = client name + contact details + inventory description
• Real time processing = updates immediately, one transaction at a time
• Database = master files, information and all transactions
3
, • Columns = where data is stored in fields
• Row = records consisting of various fields
• File = a collection of records
• Database = a collection of all related files
o Evolution of IT
• Internet
- Created opportunities for businesses to transact online
- Interact directly with supplier’s and customer’s computer systems
- Give rise to virtual and extended enterprises
è Each stage of IT evolution gave rise to new risks and required new controls to address these risks
STAGE OF IT RISK
Distributed networks Segregation of duties
Mobility Theft & unauthorised access to confidential information
Open Source Increased areas to exploit
Image processing reduce input errors
(barcode scanning)
Convergence risks increase and similar to computer
(cameras,scanner, data storage, GPS, snapscan)
Cloud computing Disruption of business when internet connectivity is jeopardized,
and data can also be lost or intercepted in communication
o 4th industrial revolution:
• This gave rise to new technological breakthroughs in a number of field
• Digital revolution within society
Future technologies:
• Artificial Intelligence and machine learning
• Blockchain technology
• Big Data and data analytics
• Robotics and autonomous vehicles
o Protect computer information systems
HOW AND WHY?
Advantages of good IT control:
• Company reputation / trust improves (internal and external parties)
• Strategic alignment with IT business objectives = more effective business operations and better competitive
advantage
• Non-IT management personnel are able to understand IT better & have a better decision-making process as a result of
higher quality and timely information being available
• Greater level of compliance with laws and regulations
• Risk management procedures maximised by adequate implementation of IT controls
4
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller lexishtein. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R80,00. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67866 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy summaries for 14 years now