Flashcards
Accounting Information Systems Fourth Edition - Chapter 1 Key Terms - Accounting Information Systems and Firm Value
Cards in this deck (31)
- 1accounting information systemA system that records, processes, reports, and communicates the results of business transactions to provide financial and nonfinancial information to make decisions and have appropriate levels of internal controls for those transactions.
- 2business valueItems, events, and interactions that determine the financial health and well-being of the firm.
- 3Certified Information Systems Auditor (CISA)The CISA designation identifies those professionals possessing IT audit, control, and security skills. Generally, CISAs will perform IT audits to evaluate the accounting information system’s internal control design and effectiveness.
- 4Certified Information Technology Professional (CITP)The CITP designation identifies accountants (CPAs) with a broad range of technology knowledge and experience.
- 5Certified Internal Auditor (CIA)The CIA designation is the certification for internal auditors and is the standard to demonstrate competency and professionalism in the internal auditing field.
- 6cost accounting (or costing) systemA system designed to aggregate, monitor, and report to management about revenues, costs, and profitability to formulate job and process costing data, budget information, and standard costing data and allocate overhead.
- 7customer relationship management system (CRM)Information system used to manage and nurture a firm’s interactions with its current and potential clients. CRM software often includes the use of database marketing tools to learn more about the customers and to develop strong firm-to-customer relationships.
- 8dataRaw facts or statistics that, absent a context, may have little meaning.
- 9discretionary informationInformation that is generated according to one’s own judgment.
- 10enterprise system (ES)A centralized database that collects data from throughout the firm. Commercialized information system that integrates and automates business processes across a firm’s value chain located within and across organizations.
- 11financial reporting system (FRS)A system that measures and records accounting transactions and summarizes and communicates the results of the accounting transactions using financial reports, (e.g., financial statements, footnotes, and related disclosures).
- 12firm infrastructureActivities needed to support the firm, including the CEO and the finance, accounting, and legal departments.
- 13human resource managementActivities include recruiting, hiring, training, and compensating employees.
- 14human resource management system (HRMS)A system that records and tracks interactions of a company’s employees, such as employee records, payroll, attendance management, and performance evaluations.
- 15inbound logisticsActivities associated with receiving and storing raw materials and other partially completed materials and distributing those materials to manufacturing when and where they are needed.
- 16informationData organized in a way meaningful to the user.
- 17information overloadThe difficulty a person faces in understanding a problem and making a decision as a consequence of too much information.
- 18information value chainThe overall transformation from a business need and business event to the collection of data and information to an ultimate decision.
- 19mandatory informationInformation that is required to be generated or provided by law or regulation.
- 20manufacturing systemInformation that is required to be generated or provided by law or regulation.
- 21marketing and sales activitiesActivities that identify the needs and wants of their customers to help attract them to the firm’s products and buy them.
- 22operationsActivities that transform inputs into finished goods and services.
- 23outbound logisticsActivities that warehouse and distribute the finished goods and distribute them to the customers.
- 24procurementActivities that involve purchasing inputs such as raw materials, supplies, and equipment.
- 25Sarbanes–Oxley Act of 2002 (SOX)A response to business scandals such as Enron, WorldCom, and Tyco International; requires public companies registered with the SEC and their auditors to annually assess and report on the design and effectiveness of internal control over financial reporting.
- 26service activitiesActivities that provide the support of customers after the products and services are sold to them (e.g., warranty repairs, parts, instruction manuals, etc.).
- 27supply chainThe flow of materials, information, payments, and services from raw materials suppliers, through factories and warehouses, all the way to the final customers of the firm’s products.
- 28supply chain management system (SCMS)Software that connects the focal firm with its suppliers. It generally addresses segments of the supply chain, including manufacturing, inventory control, and transportation.
- 29systems analystPerson responsible for both determining the information needs of the business and designing a system to meet those needs.
- 30TechnologySupports value-creating activities in the value chain. These technologies also include research and development to develop new products or determine ways to produce products at a cheaper price.
- 31value chainA chain of critical business processes that creates value at a company.
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- Chapter 1 - Accounting Information Systems and Firm Value
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- Susan Esch
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