ACCT 3371- Ch. 10 Flash Cards

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Title: ACCT 3371- Ch. 10
Description: Ch. 10
Number of Cards: 36
Save Count: 0
Author: lb126411
Created: 2011-11-30
Tags: 10 ch
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    • Question
    • Answer
    • Side 3
    • 1. source data preparation and authorization
      2. source data collection and entry
      3. accuracy, completeness, and authenticity checks
      4. processing integrity and validity
      5. output review reconciliation and error handling
      6. transaction authenticity and integrity
    • 6 basic categories of application controls discussed in the COBIT framework for ensuring processing integrity
    • turnaround document
    • a record of company data sent to an external party and then returned by the external party to the system as input
    • field check
    • determines whether the characters in a field are of the proper type
    • sign check
    • determines whether the data in a field have the appropriate arithmetic sign
    • limit check
    • tests a numerical amount against a fixed value
    • range check
    • tests whether a numerical amount falls between predetermined lower and upper limits
    • size check
    • ensures that the input data will fit into the assigned field
    • completeness check
    • determines whether all required data items have ben entered
    • validity check
    • compares the ID code or account number in transaction data with similar data in the master file to verify that the account exists
    • reasonableness test
    • determines the correctness of the logical relationship between two data items
    • check digit verification
    • recalculating a check digit to verify that an error has not been made
    • sequence check
    • tests whether a batch of input data is in the proper numerical or alphabetical sequence
    • batch totals
    • summarize important values for a batch of input records
    • 1. financial total
      2. hash total
      3. record count
    • three commonly used batch totals
    • financial total
    • sums a filed that contains monetary values
    • hash totals
    • sums a nonfinancial numeric field
    • record count
    • the number of records in a batch
    • prompting
    • the system requests each input data item and waits for an acceptable response, ensures that all necessary data are entered
    • closed-loop verification
    • checks the accuracy of input data by using it to retrieve and display other related information
    • 1. data matching
      2. file labels
      3. recalculation of batch totals
      4. cross-footing and zero-balance tests
      5. write-protection mechanisms
      6. concurrent update controls
    • 6 processing controls
    • header record
    • located at the beginning of each file and contains the file name, expiration date, and other identification data
    • trailer records
    • located at the end of the file and contains the batch totals calculated during input
    • transposition error
    • when two adjacent digits were inadvertently reversed
    • cross-footing balance test
    • compares the results produced by each method to verify accuracy
    • zero-balance test
    • an internal check that requires the balance of an account to be zero after all entries to it have been made
    • write-protection mechanisms
    • protect against overwriting or erasing of data files stored on magnetic media
    • concurrent update controls
    • controls that lock out users to protect individual records from errors that could occur if multiple users attempted to update the same record simultaneously
    • 1. user review of output
      2. reconciliation procedures
      3. external data reconciliation
      4. data transmission controls
    • 4 output controls
    • checksums
    • a hash of a file calculated by a sending device when data are transmitted
    • parity bit
    • extra digit added to the beginning of every character than can be used to check transmission accuracy
    • even parity
    • the parity bit is set so that each character has an even number of bits with the value 1
    • odd parity
    • the parity bit is set so that an odd number of bits in the character have the value 1
    • parity checking
    • entails verifying that the proper number of bits are set to the value 1 in each character received
    • 1. prepare batch totals
      2. deliver transactions to computer operations department for processing
      3. enter transaction data into system
      4. sort and edit transaction file
      5. update master files
      6. prepare and distribute output
      7. user review
    • 7 steps of processing a batch of credit sale transactions
    • extensible business reporting language
    • XBRL
    • taxonomies
    • customized XBRL dictionaries that optimize the XBRL definitions so the tags can handle any special reporting structure