2nd or 3rd slide of every chapter read it

Week 1

What is accounting information system

_basically, it is a computer-based system that processes stores and collecting financial data hence the
name accounting information system as its mainly used to trach accounting activities.

What is the difference of data and information,

-Data is raw facts and not verified and can still change

Information is data that is confirmed verified and cannot be changed

Features of useful information

-Clear and concise

Complete

Consistent

Accurate

Available

Relevant

Useable

Understandable

Verifiable89

How does AIS adds value

It makes it easier

Faster

Timely

Value chain

Primary Activities provides direct value to the customer

Buy

Sell

Secondary Activities enables primary activities to be efficient and effective

Firm infastructure

Human resources

Technology

purchasing
Data processing cycle

For any data to be processed it must be inputted, Processed and produced

Enterprise Resource Planning

It helps planning on how to use the resources of the business in day to day activities.

Week 2

To protect accounting systems

Block chain – It is like creating a digital notebook or a block that stores the data input in it that
cannot change transactions made to it which makes it secure.

Encryption – can only be read by those who is authorized or just the sender and receiver can read it
and if it is accessed by other parties, it will show as encrypted data or cannot be read.

What do you mean by system documentation

-writing step by step process to complete a task,

For accountants

It is for when those who would take the place of the accountant or if the accountant is not there by
having a documentation it is easy for those who take the place of the accountant to use the system.

What are the three techniques of system documentation

Data flow diagram

Business process diagram

Flow chart

1. Easy to understand
2. Only put relevant data/process for your business
3. It should be flexible

Relational Database

Segregate data into different data points but have access to one another if they have relation to each
other.

Advantages

It is easy to use

Crosscheck is easy as there are multiple tables that have the same data
Disadvantages

1 mistake would mean other tables would also have a mistake.

Recording updating or deleting may be missed out to do when there are multiple data bases

Difference of physical and logical view

-logical view is the understanding of the logic of the user to prepare the table and the database

-Physical view is the design of the database, and it must be related to the logical view of the
database

Rules of creating database

Must Primary key – it is a unique identifier of a transaction

Must have Secondary key – is additional data that is related to the primary key

Must have rows and columns

Database must not be empty and must have data

Data dictionary

It tells you which area a data that you need is stored in the system with a step by step process on
how to access that data.

Week 3

Big data

Is any data that is big in volume velocity variety and veracity

Difference of predictive, prescriptive, diagnostic, descriptive

Descriptive it describes the data

Diagnostic is to diagnose a problem to find out what is wrong in the system

Predictive is to predict on how to solve a problem in the future

Prescriptive is to prescribes what to do to fix a problem in the future

ETL

To extract, transform and load data

Why need data analytics

Analyzing data will help you find out the reason of business rpoblems and to find a solution to these
problems

Data visualization

Graphical presentation of information rather than presenting it in a format that is hard to

understand.

Automation
An automatic process of data or process in the business

Structured or Unstructured data

Structured data is a highly organised data that can be run in a software

format and cannot be run in a software

Data parcing

Subdividing different complex information into few columns to easy understand the information.

Data concatenation

Is combining different columns into one, rather than having separate columns for different
information.

Week 4

General fraud

Is mispresenting information to steal money and information from any individual

Computer fraud

Is to access another person’s system or computer to access their money or assets for your own
benefit.

Fraud triangle

Pressure – feeling pressure which makes you do fraud

Rationalization – Is justifying anything in committing fraud

Opportunity – When you are in a position to commit fraud

Week 5

Function of Internal Controls

Preventive Controls

-Deter problems from occurring

Detective Controls

-Discover or detect problems that have not been prevented yet

Corrective Controls

-Identify and correct problems that have been detected

AIS has three frameworks of internal controls

What are the difference of these three frameworks

COBIT Framework

Allows IT practitioners and those using the system to govern and manage IT in their business
COSO

It classifies internal control objectives into three groups which is operations information and
compliance

Trust services framwork

Is a framework where it is a common set of standards to ensure minimum requirements are met for
security privacy and identification

What is trust services framework

Segregation of duties

It is by rather having one individual do the whole duty if the business, it is segregated into each area
which is then given to different individuals with the specified skill of that duty.

Three fundamental information securyt concepts

What is time based model

- IT is a model to show how long an attacker can hack into a system, how long can a system
alert the user of the hack and how long it takes for the system to stop the attack.

Week 6

General controls and IT controls

General is overall controls that is used in the business.

IT controls are basically is the safeguards for IT applications in your computer system.

Week 7

Revenue cycle

Steps involved in the revenue cycle

making sale

Ship goods

Bill customers

Collect cash

Receiving the money from the customer.

Expenditure cycle
Steps involved in the expenditure cycle

Order goods

Receive materials

Approve invoice

Cash disbursement

Week 8

Production cycle

Product design

Planning and scheduling

Production operations

Cost accounting

Week 9

General ledger and reporting system process

Update general ledger

Post adjusting entries

Prepare financial statements

Produce managerial reports

Week 10

What is REA diagram explain and give an example of an REA diagram

REA diagram or Resources, Events and agents diagram is a tool or technique to facilitate the
relationship of these entities or components to one another.

M:N relationship is one seller/buyer can have multiple enitity relationships

Purpose of REA to identify and so that we can enter these elements into the financial accounting
system