1: Distinguish Between Data and Information. Discuss The Characteristics of Useful Information. Explain How To Determine The Value of Information
1: Distinguish Between Data and Information. Discuss The Characteristics of Useful Information. Explain How To Determine The Value of Information
AIS
1: Distinguish between data and information. Discuss the
characteristics of useful information. Explain how to
determine the value of information.
Data are facts that are recorded and stored, insufficient for decision making.
Information is processed data used in decision making. Too much
information is difficult to make decisions. This is known as Information
Overload.
Characteristics of useful information:
Relevant: the capacity of information to make a difference in a decision by
helping users to form predictions about the outcomes of past, present, and
future events or to confirm or correct prior expectations.
Reliable: the quality of information that assures that information is
reasonably free from error and bias and faithfully represents what it purports
to represent.
Complete: the inclusion in reported information of everything material that
is necessary for faithful representation of the relevant phenomena.
Timely: having information available to a decision maker before it loses its
capacity to influence decisions.
Understandable: the quality of information that enables users to perceive
its significance.
Verifiable: the ability through consensus among measurers to ensure that
information represents what it purports to represent or that the chosen
method of measurement has been used without error or bias.
Accessible: available when needed.
Value of Information
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External:
There are five the usefulness of accounting information systems, generate
external reports, support the routine activities, support decision making, help
planning and control and assist with the implementation of internal controls.
The AIS captures the flow of information between these users for the
various business transactions.
employees
in
the
organization
(e.g.,
companies.
Business Process Cycles
Five major business process or transaction cycles are:
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1. Revenue Cycle: where goods and services are sold for cash or a future
promise to receive cash.
2. Expenditure cycle: where companies purchase inventory for resale or raw
materials o use in producing products in exchange for cash or a future
promise to pay cash.
3. The production or conversion cycle: where raw materials are transformed
into finished goods.
4. Human resources/payroll cycle: where employees are hired, trained,
compensated, evaluated. Promoted and terminated,
5. Financial cycle: where companies sell shares in the company to investors
and borrow money and where investors are paid dividends and interest is
paid on loans.
Components of AIS:
Consists of
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Processes
Or
1. the people who use the system
2. the procedures and instructions used to collect, process, and store data
3. the data about the organization and its business activities
4. the software used to process the data
5. the information technology infrastructure include the computer peripheral
devices and network communication devices used in the AIS
6. the internal controls and security measures that safeguard AIS data
Or
A well thought out AIS can add value through effective and efficient
decisions.
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Or
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Chapter: 2
1: Describe the four parts of the data processing cycle
and the major activities in each? NB
This process consists of four steps; data input, data storage, data
processing and information output.
Data Input: The first step in processing input is to capture transaction
data and enter them into the system. The Data must be collected
about three facets of each business activity:
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Data Storage
A companys data are one of its most important resources.. To function
properly, an organization must have ready and easy access to its data.
Therefore, accountants need to understand how data are organized
and stored in an AIS and how they can be accessed. Three ways to
store data
Ledgers Cumulative accounting information is stored in general and
subsidiary ledger. A general ledger contains summary-level data for
every asset, liability, equity, revenue, and expense account. A
Subsidiary ledger contains detailed data for any general ledger
account with many individual subaccounts.
Data Processing
Once business activity data have been entered into the system, they
must be processed to keep the databases current. The four different
types of data processing activities, referred to as CRUD are as follows:
1 Creating new data records, such as adding a newly hired
employee to the payroll database.
2 Reading, retrieving, or viewing existing data.
3 Updating previously stored data.
4 Deleting data, such as purging the vendor master file of all
vendors the company no longer does business with.
Information Output
The final step in the data processing cycle is information output. When
displayed on a monitor output is referred to as soft copy, when
printed on a paper it is referred to as hard copy. Information is
usually presented in one of three forms: a document, a report or a
query response.
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Chapter: 3
L.O.2: Prepare and use flowcharts to understand, evaluate and
document information system
A flowcharts is an analytical technique used describe some aspect of an
information system in a clearly, concise, and logical manner.
Flowcharting symbols are divided into four categories as shown in figure 3-8
1 Input/output symbols represent devices or media that provide input
to or record output form processing operating.
2 Processing symbols show what types of devices are used to process
data or indicate when processing is performed manually.
3 Storage symbols represent the devices used to store data,
4 Flow and miscellaneous symbols indicate the flow of data, where
flowcharts begin or end, where decisions are made, and when to add
explanatory notes to flowcharts
L.O.1: A data flow diagram (DFD) graphically describes the flow of data
within an organization. There are four basic elements: data source and
destination, data flows, transformation processes and data stores
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Chapter: 5
L.O.1: Explain the threats faced by modern information
systems
Information systems are becoming increasingly more complex and society is
becoming increasingly more dependent on these systems and Companies
also face a growing risk of these systems being compromised. Therefore,
Companies face four common threats to their information systems:
1.
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4.
of
inventory)
and
fraudulent
financial
statement
(involves
2.
Increase
have
compared
the
psychological
and
demographic
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Chapter 6
1. Compare and contrast computer attack and abuse tactics
Computer Attacks and Abuse: All computers connected to the internet,
especially those with important trade secrets or
valuable IT assets, are under constant attack from hackers, foreign
governments, terrorist
groups, disaffected employees, industrial spies, and competitors. These
people attack
Computers looking for valuable data or to harm the computer system.
Preventing attacks is a
constant battle.
Types of Attacks
There are three types of computer attacks, and they are:
Hacking: is the unauthorized access, modification, or use of an electric
device or
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some element of a computer system. Most hackers break into systems using
known flaws in operating systems or application programs, or as a result of
poor access
controls.
Social Engineering: refers to techniques or psychological tricks used to
get people to comply with the perpetrators wishes in order to gain
physical or logical access to a building, computer server or network
usually to get the information needed to
Access a system for the purpose of obtaining confidential data.
Malware: is any software that can be used to do harm
2. Describe the different types of malware used to harm computers
Types of Malware
Spyware:
software
secretly
monitors
and
collects
personal
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Chapter 7
1. Explain basic control concepts and explain why computer control
and security are important.
Internal control is the process implemented by the board of directors,
management, and those under their direction to provide reasonable
assurance that the following control objectives are achieved
Application controls
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Inadequate Protection:
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The framework
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The
Uncertainty
results
in
risk
and
opportunity,
which
are
the
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4 Compliance
Explain how to assess and respond to risk using the Enterprise Risk
Management (ERM) model.
RISK ASSESSMENT AND RISK RESPONSE
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Inherent risk: The risk that exists before management takes any steps to
control the likelihood or impact of a risk. Residual risk: The risk that
remains after management implements internal controls or some other form
of response to risk.
Management can respond to risk in one of four ways:
Avoid it. Avoid risk by not engaging in the activity that produces the risk.
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