UNIVERSITY OF THE EAST - CALOOCAN CAMPUS

College of Business Administration

SY 2020 - 2021
BSA 3103 - Accounting Information System

NAME VALLEJOS, RAFAEL JR.C CLASS ID: 34

SECTION BSA 1E DATE SEPTEMBER 6, 2020

Module No. : 3 Activity No.: 2

Topic : Ethics, Fraud, and Internal Control

Key Terms
Define the terms below using your own words. Include also a description of the terms.

1. access controls
= this is a form of security technique that controls who or what can view or use
resources in a computing environment.

2. accounting records
= these are sources of information and evidences which are being used to
prepare to audit financial statements. Example is the documentation to prove
asset ownership for creation of liabilities and proof of monetary and non-
monetary transactions.

3. accuracy
= this is when data conforms to the correct value or standard being set.

4. application controls
= is a security practice that blocks or restricts unauthorized applications from
executing in ways that put data at risk. ... Application control includes
completeness and validity checks, identification, authentication, authorization,
input controls, and forensic controls, among others

5. bribery
= this is the giving of money or favor given or promised in order to influence the
judgment or conduct of a person in a position of trust.

6. business ethics
= this is a form of applied ethics or professional ethics, that studies ethical
principles and moral or ethical problems that can arise in a business environment.

7. Completeness
= this is the state of being complete and entire; having everything that is needed.

8. computer ethics
= these are ethics which are part of practical philosophy concerned with how
computing professionals should make in their decisions regarding professional
and social conduct.
9. computer fraud
= this kind of fraud is a cybercrime and the act of using a computer to alter
electronic data, or to gain unlawful use of a computer or system.

10. conflict of interest

= this is a kind of situation in which a person or organization is involved in multiple
interests most of the time financial or otherwise, and serving one interest could
involve working against another

11. control activities

= these are the actions established through policies and procedures that help
ensure that management's directives to mitigate risks to the achievement of
objectives are carried out.

12. control environment

= these are also called "Internal control environment” and it means the overall
attitude, awareness and actions of directors and management regarding the
internal control system and its importance to the entity

13. corrective controls

= these include any measures taken to repair damage or restore resources and
capabilities to their prior state following an unauthorized or unwanted activity.

14. data collection

= this is the process of of course collecting, gathering and measuring information
on targeted variables in an established system, which then enables one to answer
relevant questions and evaluate outcomes

15. database management fraud

= this refers to the actions a business takes to manipulate and control data to
meet necessary conditions throughout the entire data lifecycle.

16. detective controls

= this is an accounting term that refers to a type of internal control intended to
find problems within a company's processes once they have occurred.

17. eavesdropping
= this is when you secretly listening to a private conversation or communications
of others without their permit.

18. economic extortion

= this is when you try to get something through force, threats or blackmail.
19. employee fraud
= this occurs when an employee commits a fraud against their employer.

20. ethical responsibility

= this is the ability of a firm to recognize, interpret and act upon multiple principles
and values according to the standards within a context.

21. ethics
= these are moral principles that govern a person's behavior or the conducting of
an activity.

22. exposure
= this is when you try to get yourself to be included or to be exposed to contact
with something.

23. fraud
= this is the wrongful or criminal doings of a person, example an employee in his
company which he is employed intended to result in financial or personal gain.

24. general controls

= these are the basic controls that can be applied to IT systems such as
applications, operating systems, databases, and supporting IT infrastructure.

25. illegal gratuity

= is when someone gives something of value to a public official because that
public official does or fails to do some act.

26. internal control system

= this is defined as a process for assuring of company’s and such objectives in
operational effectiveness and efficiency, reliable financial reporting, and
compliance with laws, regulations and policies

27. Lapping
= this is when you try to pass someone else who is competing in a race when you
are ahead of them by a whole lap.

28. summarization
= this is when you try to make a general statement or bottom line concept out of
a long story.

29. supervision
= this is what experts give when new employee is in his job, they supervise so that
they can correct them whenever they are wrong in their working
30. timeliness
= this is the appropriateness and essence of works to be done with respect to
time.

31. transaction authorization

= this is a permit from the management to purchase, buy, sell etc. dealing with
the company’s products and services

32. transaction fraud

= these are the wrongful doings that an employee is doing during his or her job in
a firm which is usually unknown first by the management. This includes tampering
of accounting information.

33. verification procedures

= this is what being used if a transaction really passed the stages to be allowed to
be transacted.