Final Exam AC 340 New PDF

Chapter 11: The Need for a Code of Ethics & Control Concepts Flashcard 1: Q: What is the purpose of a code of ethics in an Accounting Information System (AIS)? A: It ensures integrity, trust, and transparency while guiding professionals in making ethical decisions and preventing fraud. Flashcard 2...

Chapter 11: The Need for a Code of Ethics & Control Concepts Flashcard 1: Q: What is the purpose of a code of ethics in an Accounting Information System (AIS)? A: It ensures integrity, trust, and transparency while guiding professionals in making ethical decisions and preventing fraud. Flashcard 2: Q: What are the five components of the COSO internal control framework? A: 1) Control Environment, 2) Risk Assessment, 3) Control Activities, 4) Information and Communication, 5) Monitoring. Flashcard 3: Q: What does the control environment component of COSO represent? A: It represents the organizational culture, ethical values, and integrity that influence the design and operation of internal controls. Flashcard 4: Q: What is the purpose of the risk assessment component in COSO? A: To identify, analyze, and prioritize risks that may affect the achievement of business objectives. Flashcard 5: Q: What is COBIT? A: COBIT is a framework for IT governance and management that aligns IT with business objectives, ensures compliance, and optimizes IT resources. Flashcard 6: Q: How does COBIT differ from COSO? A: COBIT is focused on IT governance and controls, while COSO is broader, focusing on internal controls for the entire organization. Flashcard 7: Q: What does the monitoring component of COSO include? A: Ongoing or separate evaluations to ensure that internal controls are operating effectively over time. Flashcard 8: Q: What are the primary goals of the COSO Enterprise Risk Management (ERM) Framework? A: To identify, assess, and manage risks across the organization to achieve strategic objectives. Flashcard 9: Q: What is the role of governance in the COSO ERM framework? A: Governance ensures that the organization’s risk management strategies are aligned with business objectives and effectively managed. Flashcard 10: Q: What is the purpose of ITIL? A: ITIL provides best practices for IT service management, ensuring that IT services align with the business's needs. Flashcard 11: Q: What is the ITIL Service Lifecycle model? A: It includes Service Strategy, Service Design, Service Transition, Service Operation, and Continual Service Improvement. Flashcard 12: Q: What is risk tolerance in ERM? A: Risk tolerance refers to the acceptable level of risk an organization is willing to take in pursuit of its objectives. Chapter 12: Computer Fraud, Abuse, and Information Security Flashcard 13: Q: What is computer fraud? A: Fraudulent activities involving the manipulation or misappropriation of data and systems for personal gain. Flashcard 14: Q: What is input fraud? A: Input fraud involves altering or falsifying data when entering it into an information system. Flashcard 15: Q: What is processor fraud? A: Processor fraud occurs when individuals exploit software or systems to misappropriate assets or perform unauthorized activities. Flashcard 16: Q: What is output fraud? A: Output fraud involves altering or stealing data after it has been processed and output from the system (e.g., reports). Flashcard 17: Q: What is the CIA triad in information security? A: The CIA triad consists of Confidentiality, Integrity, and Availability — the core principles of information security. Flashcard 18: Q: What is the role of encryption in protecting data? A: Encryption converts data into a code that prevents unauthorized access or tampering. Flashcard 19: Q: What is authentication in information security? A: Authentication is the process of verifying the identity of users or systems to ensure only authorized access. Flashcard 20: Q: What are multi-factor authentication (MFA) methods? A: MFA requires two or more forms of identification, such as a password, fingerprint, or security token. Flashcard 21: Q: What is the purpose of disaster recovery planning (DRP)? A: DRP ensures the recovery of IT systems and infrastructure following a disaster to minimize business disruption. Flashcard 22: Q: What is the difference between disaster recovery planning (DRP) and business continuity management (BCM)? A: DRP focuses on IT recovery, while BCM ensures that all critical business operations continue during and after a disaster. Flashcard 23: Q: What is a SOC 1 report? A: SOC 1 evaluates an organization's internal controls over financial reporting. Flashcard 24: Q: What is a SOC 2 report? A: SOC 2 evaluates controls related to security, availability, processing integrity, confidentiality, and privacy. Flashcard 25: Q: What is vulnerability management? A: Vulnerability management involves identifying, evaluating, and mitigating security weaknesses within systems. Chapter 13: Hardware, Software, Auditing & Monitoring Flashcard 26: Q: What is the difference between system software and application software? A: System software includes operating systems and utilities, while application software is designed to perform specific tasks, such as accounting software. Flashcard 27: Q: What are the key components of computer hardware? A: The main components include the central processing unit (CPU), memory, storage devices, input/output devices, and network components. Flashcard 28: Q: What is continuous monitoring? A: Continuous monitoring is an ongoing process of assessing and managing risks related to IT systems, security, and compliance. Flashcard 29: Q: What is continuous auditing? A: Continuous auditing involves the real-time review and analysis of financial transactions and data to ensure accuracy and compliance. Flashcard 30: Q: What are Computer-Assisted Audit Techniques (CAATs)? A: CAATs are tools and techniques used by auditors to analyze large datasets, test internal controls, and assess financial statements. Flashcard 31: Q: What is the primary function of a database management system (DBMS)? A: A DBMS is used to create, manage, and manipulate databases, ensuring that data is stored, retrieved, and updated efficiently. Flashcard 32: Q: What is the purpose of a firewall in computer security? A: A firewall monitors and controls incoming and outgoing network traffic, protecting systems from unauthorized access and attacks. Chapter 14: Business Intelligence & Financial Reporting Flashcard 33: Q: What is Business Intelligence (BI)? A: BI involves technologies and practices for analyzing business data to support better decision- making, including data mining and reporting tools. Flashcard 34: Q: What is data warehousing in the context of BI? A: Data warehousing is the process of collecting and storing large volumes of historical data for analysis and reporting. Flashcard 35: Q: What is XBRL (eXtensible Business Reporting Language)? A: XBRL is a standardized language used for digital financial reporting that facilitates data analysis and comparison. Flashcard 36: Q: What is the role of reporting tools in Business Intelligence? A: Reporting tools help transform raw data into actionable insights, often through visualizations like dashboards and graphs. Flashcard 37: Q: What is OLAP (Online Analytical Processing)? A: OLAP allows users to analyze multidimensional data interactively, often used in BI to facilitate complex queries and reporting. Chapter 15: AI, Blockchain, and Emerging Technologies Flashcard 38: Q: What are the types of Artificial Intelligence (AI)? A: 1) Narrow AI (specific tasks), 2) General AI (performs human-like tasks), 3) Machine Learning (learns from data). Flashcard 39: Q: What is machine learning? A: Machine learning is a type of AI where systems improve their performance over time by learning from data. Flashcard 40: Q: What is Blockchain? A: Blockchain is a decentralized, distributed ledger technology that records transactions in an immutable and secure way. Flashcard 41: Q: What are the main features of Blockchain technology? A: Decentralization, immutability (cannot be changed), and cryptographic security. Flashcard 42: Q: How can Blockchain improve auditing and assurance? A: Blockchain improves transparency, provides real-time access to transaction data, and ensures that data cannot be altered after it’s recorded. Flashcard 43: Q: What is the impact of Blockchain on financial reporting? A: Blockchain can automate and secure financial reporting, reduce fraud, and enhance the accuracy and timeliness of financial data. Flashcard 44: Q: What is the difference between public and private Blockchain? A: A public Blockchain is open to anyone, while a private Blockchain is restricted to authorized participants. Flashcard 45: Q: How does AI help with fraud detection in accounting? A: AI analyzes large datasets to detect anomalies and patterns that could indicate fraudulent activity. Flashcard 46: Q: What is the role of Robotic Process Automation (RPA) in accounting? A: RPA automates repetitive tasks, such as data entry, reconciliations, and reporting, improving efficiency and reducing human error. Flashcard 47: Q: What is predictive analytics? A: Predictive analytics uses data, statistical algorithms, and machine learning to identify the likelihood of future outcomes. Flashcard 48: Q: What is a smart contract in Blockchain? A: A smart contract is a self-executing contract with predefined terms and conditions encoded in Blockchain, automating execution without intermediaries. Flashcard 49: Q: How does AI contribute to financial forecasting? A: AI analyzes historical data to predict future financial outcomes, such as cash flow and profitability. Flashcard 50: Q: What are the ethical concerns associated with AI in accounting? A: Ethical concerns include bias in algorithms, transparency of AI decisions, and data privacy.