This is the topic of Accounting Information System. I need imfortant MCQ, True False, Matching, regarding this chapter.

Prepared by Paula Funkhouser University of Nevada, Reno Core Concepts of Accounting Information Systems, 13th Edition Mark G. Simkin Jacob M. Rose Carolyn S. Norman AIS and the Acountant Chapter 1 Chapter 1: AIS and the Accountant Introduction: Why Study Accounting Information Systems (AIS)? Careers in AIS Accounting and IT What Are AISs? What's New in AISs? AIS at Work 2 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Introduction: Why Study AIS Applying information technology (IT) to accounting systems - Financial accounting - Managerial accounting - Auditing - Taxation Increased career opportunities - Specialized employment - Combine accounting and advanced computer skills 3 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Careers in Accounting Information Systems Traditional Accounting - Understanding of accounting and information systems - Certified Information Technology Professional Systems Consulting - Designing systems and reengineering processes - Software and hardware selection - Value-added resellers (VARs) 4 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Careers in Accounting Information Systems Certified Fraud Examiner - Professional certification - Association of Certified Fraud Examiners (ACFE) IT Auditing and Security - Risk analysis with Information Systems - Aid financial auditors in evaluation of controls - Certified Information Systems Auditors (CISAs) - Penetration testing 5 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Careers in Accounting Information Systems Predictive Analytics - Profession changing - Statistical analysis - Data modeling - Data mining - Data Warehouses 6 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Accounting and IT Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Financial Accounting Non-Financial Data - REA Accounting - Resources, Events, and Agents Real-Time Reporting Interactive Data and XBRL - Reusable data in multiple applications - \"Tagging\" data 8 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Objectives of Financial Accounting External - Provide relevant information - Investors, Creditors - Financial Statements Internal - Provide relevant information - Planning, decision making, and control activities - Division managers, product managers 9 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Managerial Accounting Objective - Provide relevant information - Internal users (Managers) Components - Cost Accounting - Budgeting 10 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Cost Accounting Measure and Control Costs - Acquisition, processing, distribution, and selling activities AIS Examples - Corporate Performance Measurement and Business Intelligence 11 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Activity-Based Costing Assigning of Overhead - Increased automation created difficulties - Lacked direct relationship between labor and overhead AIS Implementation - Easier assignment of overhead - Important aspect of strategic planning 12 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Corporate Performance Measurement Responsibility Accounting System - Trace unfavorable performance to responsible department or individuals - Immediate corrective action by managers Balanced Scorecard - Financial Performance - Customer Knowledge - Internal Business Processes - Learning and Growth 13 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Budgeting Definition - Financial projection for the future - Short-range and long-range Usefulness - Managerial control - Compare actual and budgeted results 14 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Auditing Traditional role - Evaluate the accuracy and completeness of a corporation's financial statements Present role - Evaluate client's compliance with HIPAA laws - IT evaluations and audits (security, privacy) - Management consulting 15 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Taxation Taxation Software - Example of AIS - Create and evaluate tax strategies - Transmit completed forms Professional Usage - Research challenging questions - Access more up-to-date information - Database access 16 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Study Break #1 The Sarbanes-Oxley Act of 2002: A. Enables U.S. officers to wire tap corporate phones if required B. Has led to a decrease in the amount of work done by auditors and accountants C. Forbids corporations from making personal loans to executives D. Requires the CEO of a public company to take responsibility for the reliability of its financial statements 17 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Study Break #2 A dashboard is: A. A computer screen used by data entry clerks for input tasks B. A physical device dedicated to AIS processing tasks C. A summary screen typically used by managers D. A type of blackboard used by managers to present useful information to others 18 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. What are AISs Accounting and Information Technology Information versus Data AIS components 19 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Accounting and IT An Accounting Information System (AIS) - Data and processing procedures - Creates needed information for users AIS Today - Financial and non-financial data - Enterprise-wide information system - Business process focused 20 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Information (versus Data) Data - Raw facts - No organization or meaning - Beginning of audit trail Information - Processed data - Meaningful to users 21 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. AIS Components 22 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Computerized Data Processing Problems Information overload for users Unable to identify input errors Difficult to follow audit trails 23 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. AIS and ERP Accounting Information Systems - Internal and External users - Financial information Enterprise Resource Planning Systems - Internal users - Financial and Nonfinancial information - Predictive analytics 24 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. AIS and ERP Overlapping of the Systems - Provide same information - Emphasize business processes - Integration into seamless databases 25 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. AIS: Role in Organizations Information Age - Impact of technology - Fewer workers producing goods Knowledge workers - Produce, analyze, manipulate, and distribute information - Focus on business activities 26 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. AIS: Role in Organizations E-Business - Conducting business over the Internet - Increased importance and growth E-Commerce - Subset of e-business - Buying and selling transactions 27 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Study Break #3 Which of the following is likely to be information rather than data? A.Sales price B. Customer number C. Net profit D. Employee name 28 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Study Break #4 With respect to computerized AIS, computers: A.Turn data into information in all cases B. Make audit trails easier to follow C. Cannot catch mistakes as well as humans D. Do not generally process information more quickly than humans 29 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. What's New in AIS? Cloud Computing Sustainability Reporting Suspicious Activity Reporting Forensic Accounting, Governmental Accountants, and Terrorism Corporate Scandals and Accounting 30 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Cloud Computing 31 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Disadvantages of Cloud Computing Reliability of Internet Connection Data Security Measures of Provider Quality of Service Reliability of Service Provider 32 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Sustainability Reporting Reporting Nonfinancial Measures - Impacts on income, value, or future performance 33 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Suspicious Activity Reporting 34 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Forensic Accounting Forensic Accounting - Combines skills of investigation, accounting, and auditing - Provides evidence of criminal activity Examples of AIS Uses in Forensic Accounting - Identifying and denying financial aid to terrorists - Tracing arms and chemical orders to final destination - Planning for catastrophic events - Controlling cyber terrorism - Detecting money laundering and illegal transfers 35 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Corporate Scandals and Accounting Enron (2001) - Manipulation of accounting records - Understate liabilities and inflate earnings Bernard Madoff (2008) - Investment fund manager - Ponzi scheme - Resulted in billions of dollars in losses 36 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Study Break #5 The acronym SAR stands for: A. Simple accounting receipts B. Suspicious accounting revenue C. Suspicious activity reporting D. Standard accounts receivable 37 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Study Break #6 Assigning overhead costs based on the resources, rather than only direct labor, used in manufacturing is an example of: A. Activity-based costing (ABC) B. Budgeting C. Cost-plus accounting D. Financial, rather than managerial, accounting 38 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. AIS at Work The cost of not filing a SAR Filing a SAR in not optional 39 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Prepared by Paula Funkhouser University of Nevada, Reno Core Concepts of Accounting Information Systems, 13th Edition Mark G. Simkin Jacob M. Rose Carolyn S. Norman Accounting on the Internet Chapter 2 1 Chapter 2: Accounting on the Internet Introduction The Internet and the World Wide Web XBRL - Financial Reporting on the Internet Electronic Business Privacy and Security on the Internet 2 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. The Internet and World Wide Web Internet Addresses and Software Intranets and Extranets The World Wide Web, HTML, and IDEA Groupware, Electronic Conferencing, and Blogs 3 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Internet Addresses and Software Domain Address - Also called a Uniform Resource Locator (URL) - www.Name.com.uk Internet Protocol (IP) - Numeric address of domain address - 207.142.131.248 - Transmission Control Protocol (TCP) 4 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Intranets and Extranets Intranets - Based on same software as the Internet - Internal to the organization - Outsiders are unable to access information Extranets - Enable external users to access intranets - Utilize passwords or private data communications channels 5 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. The World Wide Web, HTML, and IDEA World Wide Web - Multimedia portion of the Internet Hypertext Markup Language (HTML) - Editing language - Used in design of web pages Hypertext Transfer Protocol (HTTP) - Communications protocol used to transfer web pages 6 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. HTML Code 7 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Display of HTML Code 8 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Groupware, Electronic Conferencing, and Blogs Groupware - Allow users to complete numerous tasks electronically - Send and receive e-mail, collaborate on work tasks, schedule appointments, share files - Software include Exchange, Groupwise, Lotus Notes, and Outlook 9 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Groupware, Electronic Conferencing, and Blogs Instant Messaging Software - Remote users communicate in real time - Electronic Conferencing Knowledge Management - Programs utilized to distribute expertise within the organization Blogs - Collaboration tool - Create, share, and leverage knowledge 10 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Social Networking and Its Value to Accountants Commercial Utilization - Increase organization recognition - Public reaction to launch of new product - Developing an online presence - Seeking new clients - Communicate on projects - Identify consumer anger 11 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Study Break #1 Which of the following is most likely to contain only numbers? A. Domain address B. URL address C. IP address D. Postal address 12 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Study Break #2 Which of the following enables users to view data with a web browser? A. Intranet B. Extranet C. Internet D. All of these 13 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. XBRL - Financial Reporting on the Internet eXtensible Markup Language (XML) - Similar to HTML - Users define their own tags - XML tags describe the data eXtensible Business Reporting Language - Tags are standardized for business reporting purposes 14 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. XBRL Code 15 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. XBRL - Financial Reporting on the Internet XBRL Instance Documents and Taxonomies - Must understand the standard tags - Must understand the rules that govern the use of the tags Current Status of XBRL - XBRL International Consortium 16 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. How XBRL Affects Accountants 17 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. XBRL - Financial Reporting on the Internet The Benefits of XBRL - Transmit financial data in standard format - Data items are uniquely defined - Searching for tags is easier (IDEA) - Data is self-checking - Automatic and reliable exchange of financial information - Companies are not constrained to specific formats 18 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. XBRL - Financial Reporting on the Internet The Drawbacks of XBRL - Requires new users to learn, and conform to, the standards of the language - Evolving standards require conformity to changing specifications - No requirement for auditors to provide assurance - Costs of transition 19 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Study Break #3 All of the following are markup languages (that use edit tags) except: A. HTML B. BYTE C. XML D. XBRL 20 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Study Break #4 A document file containing XBRL tags is a(n): A. Extranet document B. Intranet document C. Instance document D. URL 21 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Electronic Business Definition - Conduct of business with computers and data communications Categories of Electronic Commerce - Accounting - Retail sales - E-payments and E-wallets - Electronic data interchange - Cloud-computing services 22 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. E-Accounting Performing accounting functions on the Internet - Preparing financial reports - Completing income tax returns - Preparing budgets - Writing reports - Publishing financial information 23 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Retail Sales Overview - Virtual stores to sell directly to customers - Automated AISs Problems with Internet Retail Sales - - - - - Legitimacy of web sites Reliance upon e-mails Reliance upon suppliers Click fraud Privacy concerns 24 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Advantages of Virtual Stores 25 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Retail Sales Privacy Concerns - Annoying e-mail - Credit card information - Sensitive information (example - Rx) 26 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. E-Payments and E-Wallets E-Payments - Faster, easier, and safer way to handle online transactions - E-payment service acts as intermediary E-Wallet - Store consumer's personal information - Customers pay for purchases by providing their e-wallet account numbers 27 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. E-Payment System 28 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Virtual Currency Medium of exchange that operates - Beyond restriction of a particular country - Beyond monetary policies Example - Bitcoin 29 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Virtual Currency Retailers accept virtual currency - Ability to do more business - Ease of electronic transactions - No need for credit card middlemen or check clearing houses - Near-instantaneous credit of transactions to corporate accounts - Consumer wallets cannot be frozen - No transaction fees 30 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Virtual Currency Risks with virtual currency - Potential devaluation of currency in response to market forces - Transactions are not independently auditable - Earlier virtual currencies have failed - Unwillingness of others to accept it 31 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Business-to-Business E-Commerce Definition - Businesses buying and selling goods and services to each other over the Internet Advantages - Shortens time from purchase to delivery - Expanded variety of vendors - Reduces processing costs - Wider availability of real-time data 32 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Electronic Data Interchange Electronic Data Interchange - Transmit information over high-speed data communications channels - Automates exchange of business information Advantages - Ability to fax documents - Can include handwritten signatures - Ability to exchange graphic and photographic documents 33 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Cloud Computing Processing Services - Platform as a Service (PaaS) Storage and Backup Services - Maintain copies of critical data Educational Services - Research and using specialized web tutorials 34 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Advantages of Cloud Computing 35 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Privacy and Security on the Internet Definition - Using another person's personal data that involves fraud or deception - Identity Theft and Assumption Deterrence Act of 1998 (ITADA) Company Prevention - Use preventive controls - Exercise reasonable caution to protect personal information 36 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Safeguarding Personal Data 37 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Security Safeguarding electronic resources and limiting access to authorized users Access Security - Authentication - What you have - plastic card - What you know - unique information - Who you are - fingerprints 38 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Spam and Phishing Spam - Unsolicited e-mail messages - Increasingly costly to organizations Phishing - Websites requesting personal information from consumers - Most information is typically stored in AISs 39 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Firewalls Purpose - Guards against unauthorized access - Stand-alone devices and/or software Two Primary Methods - Inclusion - Access Control List (ACL) - Exclusion Problems - Denial-of-Service Attacks - Spoofing 40 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Firewall Example 41 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Intrusion Detection Systems Passive IDSs - Create logs of potential intrusions - Alert network administrators Reactive IDSs - Detect potential intrusions dynamically - Log off potentially malicious users - Program firewalls to block messages from suspected source 42 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Value-Added Networks Definition - Private, point-to-point communication channels - Usually created for security purposes Methods of Creation - Blank slate, create from scratch - Lease secure, dedicated transmission lines - Create a Virtual Private Network (VPN) 43 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Virtual Private Networks Definition - Similar to VAN - Transmit messages over existing Internet connections Creating Secure Data Transmission - Use \"tunneling\" security protocols - Encrypt transmitted data - Authenticate remote computer 44 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. VAN-based EDI System 45 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Proxy Server Definition - Network server that controls web access Advantages - Funnel internet requests through a single server - Examine and test requests for authenticity - Limit employee access to approved websites - Limit stored information - Store frequently-accessed web pages (Cache) 46 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Data Encryption Definition - Transform plaintext messages into unintelligible cyphertext messages Encryption key - Mathematical function dependent upon a large prime number - Data Encryption Standard (DES) 47 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Simple Data Encryption 48 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Data Encryption Secret Key Cryptography - Users must keep the key secret and not share the key with other parties Public Key Encryption - Each party uses a pair of public/private encryption keys - SSL and S-HTTP 49 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Digital Signatures and Digital Time Stamping Digital Signature - Encrypted portion of message - Digital Signature Standard (DSS) Digital Certificate - Certificate Authority Digital Time-Stamping Services (DTSSs) 50 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Study Break #5 Which of these statements is correct? A. A VPN is a type of VAN B. DES stands for \"data entry system\" C. An IDS is the same as a firewall D. All of these statements are correct 51 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Study Break #6 Spoofing means: A. Kidding someone about their firewall B. Simulating a disaster to test the effectiveness of a disaster recovery system C. Posing as an authentic user to gain access to a computer system D. Encrypting data for security purposes 52 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Prepared by Paula Funkhouser University of Nevada, Reno Core Concepts of Accounting Information Systems, 13th Edition Mark G. Simkin Jacob M. Rose Carolyn S. Norman Computer Crime, Fraud, and Ethics Chapter 3 1 Chapter 3: Computer Crime, Fraud, and Ethics Introduction Computer Crime and Fraud Examples of Computer Crimes Preventing and Detecting Computer Crime and Fraud Ethical Issues, Privacy, and Identity Theft 2 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Computer Crime and Fraud High level of public interest Data on incidents is limited Sources of information - Computer Security Institute (CSI) annual survey - KPMG surveys - Association of Certified Fraud Examiners (ACFE) survey 3 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Computer Crime and Fraud Computer Crime - Criminal activity that involves computers - Dishonestly obtain money, acquire property, or something of value, or cause a loss - Steal identities - Harass an individual 4 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Computer Crime Examples 5 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Computer Crime and Fraud Fraudulent Financial Reporting - Intentional falsification of accounting records - Intend to mislead analysts, creditors, investors Misappropriation of Assets - Misuse of company assets - Committed by employees within an organization 6 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Asset Misappropriation Examples 7 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Federal Legislation of Computer Crimes Computer Fraud and Abuse Act of 1986 (CFAA) - Amended in 1994 and 1996 Computer Fraud Definition - An illegal act - Computer technology essential for perpetration, investigation, or prosecution 8 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. CFAA Fraudulent Acts Unauthorized theft, use, access, modification, copying, or destruction of software or data Theft of money by altering computer records or the theft of computer time Intent to illegally obtain information or tangible property through the use of computers 9 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. CFAA Fraudulent Acts Use, or the conspiracy to use, computer resources to commit a felony Theft, vandalism, destruction of computer hardware Trafficking in passwords or other login information for accessing a computer Extortion that uses a computer system as a target 10 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Federal Legislation Affecting the Use of Computers 11 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Federal Legislation Affecting the Use of Computers 12 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. State Legislation Every state has a computer crime law State law provisions - Define computer terms - Define some acts as misdemeanors - Declare other acts as felonies 13 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Computer Crime Statistics Limited availability of data - Private companies handle abuse internally - Most computer abuse is probably not discovered Growth of computer crime - Exponential growth in use of computer resources - Continuing lax security - Availability of information about how to perpetrate computer crimes 14 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Study Break #1 Which of the following pieces of computer legislation is probably the most important? A. B. C. D. Cyber Security Enhancement Act of 2002 Computer Security Act of 1987 The Computer Fraud and Abuse Act of 1986 Federal Privacy Act of 1974 15 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Study Break #2 Which legislation might help discourage computer hacking? A. B. C. D. Federal Privacy Act of 1974 Computer Fraud and Abuse Act of 1986 USA Patriot act of 2001 CAN-SPAM Act of 2003 16 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Examples of Cybercrime The TRW Credit Data Case - Credit rating company - Altered company credit ratings for a fee - Clients relied on inaccurate information Analysis - Data diddling - proprietary data - Fair Credit Reporting Act - protection of consumer 17 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Computer Hacking Analysis - Growth of hacking Cloud computing Wide area networks - Encryption protection - Utilize ethical hackers for intrusion and penetration testing 18 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Computer Hacking Slammer worm - Identified weakness in Microsoft SQL Server 2000 software Denial of Service (DOS) - Malware - Computer worms - Boot-sector viruses - Trojan horse programs - Logic bombs 19 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Protecting Systems Preventing Viruses - Firewalls - Antivirus software - Antivirus control procedures Organizational Control Procedures - Discourage free exchange of computer disks or external programs - Require strong passwords to limit unauthorized access - Use antivirus filters 20 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Preventing and Detecting Cybercrime and Fraud Enlist Top-Management Support Increase Employee Awareness and Education Assess Security Policies and Protect Passwords - Strong passwords - Social engineering 21 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. 10 Simple Steps to Safer PCs 22 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. 10 Simple Steps to Safer PCs 23 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Preventing and Detecting Cybercrime and Fraud Implement Controls Identify Computer Criminals - Nontechnical Backgrounds - Noncriminal Backgrounds - Education Maintain Physical Security 24 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Recognizing Symptoms of Employee Fraud Accounting Irregularities Internal Control Weaknesses Unreasonable Anomalies Lifestyle Changes Behavioral Changes 25 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Preventing and Detecting Cybercrime and Fraud Use Data Driven Techniques - Query and Spreadsheet Skills - Data and Text Mining - Employ Forensic Accountants Audit control language EnCase 26 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Study Break #3 Which of these is not helpful in attempting to thwart computer crime and abuse? A. Enlist the support of top management B. Keep employees in the dark so that they cannot perpetrate them C. Use strong passwords D. Design and test disaster recovery programs 27 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Study Break #4 Most computer criminals: A. B. C. D. E. Have nontechnical backgrounds Have noncriminal backgrounds Have little college education Are young and bright Have probably not been caught, so we don't know much about them 28 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Ethical Issues, Privacy, and Identity Theft Ethics Issues and Professional Associations - A set of moral principles or values - Governs organizations and individuals Ethical behavior - Making choices and judgments that are morally proper - Acting accordingly 29 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Ethical Issues, Privacy, and Identity Theft Ethical Issues Codes of Ethics Professional Conduct Professional Accounting Associations Certifications Institute of Management Accountants (IMA) Institute of Internal Auditors (IIA) Information Systems Audit and Control Association (ISCPA) 30 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Ethical Issues, Privacy, and Identity Theft Meeting the Ethical Challenges - Inform employees of importance of ethics - Ethics training - Lead by example - Utilize reward system 31 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Ethical Issues in Computer Usage 32 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Ethical Issues, Privacy, and Identity Theft Company Policies with Respect to Privacy - Who owns the computer and data stored on it? - What purposes the computer may be used? - What uses are authorized or prohibited? Identity Theft - Dumpster diving - Phishing - Smishing 33 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Identity Theft Methods 34 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Study Break #5 Smishing is a form of: A. B. C. D. Dial-back system Local area network Computer worm Identity theft 35 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Prepared by Paula Funkhouser University of Nevada, Reno Core Concepts of Accounting Information Systems, 13th Edition Mark G. Simkin Jacob M. Rose Carolyn S. Norman Information Technology and AISs Chapter 4 1 Chapter 4: Information Technology and AISs Introduction The Importance of Information Technology to Accountants Input, Central Processing Units and Output Devices Secondary Storage Devices Data Communications and Networks Computer Software 2 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. The Importance of IT to Accountants 1. 2. 3. Must be compatible and support other components of AIS Accountants often help clients make software and hardware purchases Auditors must evaluate computerized systems 3 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. The Importance of IT to Accountants 4. Often asked to evaluate the efficiency and effectiveness of existing system 5. IT affects how accountants work now and in the future 6. Understanding IT is vital to passing most certification exams 4 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. The AICPA's Top 10 Information Technologies for 2013 Managing and Retaining Data Securing the IT Environment Managing IT Risk and Compliance Ensuring Privacy Managing System Implementations 5 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. The AICPA's Top 10 Information Technologies for 2013 Preventing and responding to computer fraud Enabling decision support and analytics Governing and managing IT investment/spending Leveraging emerging technologies Managing vendors and service providers 6 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Study Break #1 All of the following are reasons why IT is important to accountants except: A. Accountants often help clients make IT decisions B. Auditors must evaluate computerized systems C. IT questions often appear on professional certifications examinations D. The costs of IT are skyrocketing 7 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Input Devices Source documents and data transcription Point-of-Sale (POS) devices - Bar Code Readers - Universal Product Code (UPC) Magnetic Ink Character Recognition (MICR) 8 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. MICR Symbols 9 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Input Devices Optical Character Recognition (OCR) - Mark-sense media - Turnaround documents Plastic Cards with Magnetic Strips Small-System Input Devices - PDA Devices 10 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Small-System Input Devices Keyboards Computer mice Touch pads Joy sticks Touch screens Computer pens/styluses 11 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Common Input Devices 12 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Input Devices Digital Video Cameras Biometric Scanners - Behavioral systems - Physiological systems - Enrollment 13 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Biometric Scanners 14 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Central Processing Units Primary Memory Microprocessors Computers, Processor Speeds and AISs 15 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Central Processing Units 16 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Output Devices Printers Video Output Multimedia 17 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Secondary Storage Devices Primary Memory - Volatile Memory - Lost electrical power, lost memory Secondary Storage - Mass Storage or Auxiliary Storage - Maintain data in permanent files 18 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Format of a Computer Record 19 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Secondary Storage Devices Magnetic (Hard) Disks - Redundant arrays of inexpensive disks (RAIDs) CD-ROMs, DVDs, and Blu-Ray Discs (BD) Fla 20 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Secondary Storage Devices CD-ROMs - Write-once, read-many (WORM) media DVDs Blu-Ray Discs Flash memory Image processing Record Management Systems 21 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Study Break #2 The acronyms POS, MIC, and OCR are most closely associated with: A. Input devices B. Processing devices C. Output devices D. Communication devices 22 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Study Break #3 Which of these devices is capable of storing the most data? A. CD-ROM disk B. DVD disk C. USB (flash memory) device D. Magnetic (hard) disk 23 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Data Communications and Networks Communication Channels and Protocols - Modem - Integrated Services Digital Network (ISDN) - Digital Subscriber Line (DSL) - Data Communications Protocol Local and Wide Area Networks Client/Server Computing 24 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Data Communications and Networks Local Area Networks (LANs) 25 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Data Communications and Networks Wide Area Networks (WANs) 26 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Data Communications and Networks Client / Server Computing 27 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Data Communications and Networks Wireless Data Communications (Wi-Fi) - Bluetooth - Wireless Application Protocol (WAP) - Radio Frequency Identification (RFID) - Near Field Communication (NFC) Cloud Computing 28 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. RFID Example 29 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. NFC Example 30 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Computer Software Operating Systems (OS) Application Software Programming Languages 31 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Operating Systems Graphical User Interfaces (GUIs) Multiprocessing Utility Programs Virtual Storage Antivirus Software and Viruses 32 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Application Software Personal productivity software Commercial productivity software Accounting software Communications software Enterprise resource management software (ERP) 33 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Creation of Application Software 34 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Programming Languages Object-Oriented Languages Event-driven Languages Compilers 35 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Study Break #4 Purchasing backup services from an Internet vendor is an example of: A. OCR B. Modem services C. Virtual storage D. Cloud computing 36 Copyright 2015. John Wiley & Sons, Inc. All rights reserved. Study Break #5 All of these are terms associated with programming languages except: A. Object-oriented B. Event-driven C. Compiler D. Server 37 Copyright 2015. John Wiley & Sons, Inc. All rights reserved