DFD; data flow diagram. Structured Narrative: Data Source | Data
Inflow | Process | Data Outflow | Destination
An AIS is a system that collects, records, stores, and process data to
produce information for decision makers
Employees
Operating
Departments
Payroll
Processing
System
HR
Department
Primary Activities of a Value Chain: inbound logistics, operations,
outbounds logistics, service
Management
Gov. Agencies
Types of decisions: structured (routine), semi-structured (uncommon),
and unstructured (rare, requires significant thought and care).
Sequence of given events in proper order:
1.
2.
3.
4.
5.
6.
The transaction data from source documents is entered into the
AIS by an end user
The original paper source documents are filed
These transactions are recorded in the appropriate journal
These transactions are posted to the general and subsidiary
ledgers
Trial balances are prepared
Financial reports are generated
Q: An auditor’s flowchart of a client’s financial information system
relevant to financial reporting is a diagrammatic representation that
depicts…
Corporations have unlimited opportunities to invest in technology but a
limited amount of resources to invest with.
The two major types of business strategies are the
DIFFERENTIATION method and the LOW-COST method.
XML: eXtensible Markup Language
XBRL: eXtensible Business Reporting Language; helps create
electronic tags with which to tag transaction data in the form of a
taxonomy.
EDGAR: Electronic Data
Gathering and Retrieval; the
massive electronic database that
contains the SEC filings of
thousands of companies (now
archived).
A: understanding of the design
DFD’s place a heavy emphasis on logical system aspects while
document flowcharts place more emphasis on physical aspects
Primary
Activities
IL
Oper
.
Oper
.
OL
OL
MS
MS
Serv.
Serv.
Activity
Number
1
2
3
4
5
6
7
8
9
Classificatio
n
VA
NVA
VA
VA
NVA
VA
NVA
NVA
VA
VA Time
1
1
3
NVA Time
2
5
4
Totals
Luca Pacioli, father of the
debit/credit system, 15th century
2
1
6
12
13
DLH
1
2
1
3
4
5
1
6
2
25
Cost
15
0
300
150
450
600
750
150
900
300
3750
Eliminate
YES
YES
MCE before VCA: 48%
MCE after VCA: 80%
System; a set of interrelated components that interact to achieve a
goal. Most are composed of subsystems.
Subsystems should be designed to maximize the achievement of
organizational goals.
FLOWCHAR
T EXAMPLE
Goal Conflict; occurs when the activity of a subsystem is not
consistent with another subsystem or with the larger system. Goal
Congruence is when the goals ARE aligned.
Data; facts that are collected, recorded, and processed by and
information system
Structured Data is contained in relational database systems while
unstructured data is contained in data warehouses
Information; data that has been processed to provide meaning to
users.
RETRIEVED NOT RETRIEVED
RELEVENT
A
B
NOT RELEVANT
C
D
Precision = A(A+C); Recall Accuracy = A(A+B)
Characteristics of useful information: reliance, reliability,
completeness, timeliness, understandability, verifiability, accessibility.
Internal users typically use discretionary information such as
management and cost accounting.
Electronic Data Interchanges (EDI): directed computer-to-computer
transfer of transaction information in standard formatted business
documents, such as invoices, purchase orders, inventory
management, product distribution.
Kaplan’s balanced score:
Financial
Customer
Vision &
Strategy
Organizational
Capacity
Internal
Processes