AIS key terms

A system that collects, records, stores, and processes financial and operational data to produce information for decision makers, typically combining people, procedures, software, data, and controls.

A recurring group of related business activities that generates accounting events, such as revenue, expenditure, conversion, payroll, and financing cycles, each with its own data flows and controls.

The original paper or electronic record that captures the details of a business event at the point it occurs, providing evidence for later data entry and audit verification.

A record produced by a system and later returned to the organization as input, such as a remittance slip sent with a bill that customers return with payment.

The master file of an accounting system that holds all asset, liability, equity, revenue, and expense accounts and aggregates the balances used to prepare financial statements.

A coded listing of every account an organization uses, organized by type and number so that transactions can be classified consistently and reports generated reliably.

A recorded accounting transaction showing the accounts debited and credited, the amounts, the date, and an explanation, which is then posted to ledger accounts.

A bookkeeping model in which every transaction affects at least two accounts with equal total debits and credits, keeping the accounting equation in balance.

The process of transferring amounts from recorded journal entries into the individual ledger accounts so that account balances stay current and accurate.

A report listing all ledger account balances at a point in time, used to check that total debits equal total credits before financial statements are prepared.

A structured method of assigning numeric or alphanumeric identifiers to records, accounts, or inventory so data can be classified, sorted, and retrieved efficiently.

A central repository describing each data element in a system, including its name, format, allowed values, source, and meaning, to keep data consistent across applications.

Software that stores, organizes, and controls access to data, letting multiple users and programs read and update shared records while enforcing integrity and security rules.

A data store organized as tables of rows and columns, where records in different tables are linked through shared key fields rather than physical pointers.

A field or combination of fields that uniquely identifies each record in a database table, preventing duplicate rows and enabling reliable retrieval.

A field in one table that holds the primary key value of a related table, creating a logical link between the two tables and supporting referential integrity.

A processing approach in which transactions are accumulated over a period and processed together as a group, often on a scheduled basis, rather than individually as they occur.

A processing mode in which each transaction is entered and processed immediately, updating stored data in real time and giving users instant feedback.

Data handling in which inputs are processed and results returned quickly enough to affect the event or decision in progress, with no meaningful delay.

A relatively permanent file holding standing data about entities such as customers, vendors, employees, or inventory items that is updated by transactions over time.

A file containing records of individual business events for a period, which is used to update master file balances and can serve as a recovery or audit resource.

The policies, procedures, and system features an organization uses to safeguard assets, keep records accurate, promote efficiency, and encourage compliance with laws and policies.

A control that divides incompatible responsibilities, such as authorizing, recording, and safeguarding assets, among different people so no single person can both commit and conceal an error or fraud.

A safeguard requiring that transactions be approved by someone with the proper authority before they are processed, often distinguishing general from specific approval limits.

The documented path of a transaction from its source through processing to reporting, allowing auditors to trace records forward and backward to verify accuracy and completeness.

A widely used model describing internal control as five interrelated components: control environment, risk assessment, control activities, information and communication, and monitoring.

The process of identifying and analyzing events that could prevent an organization from achieving its objectives, then deciding how to respond to those risks.

An extra digit computed from the other digits of an identification number and appended to it, letting the system detect common data entry errors such as transpositions.

Automated checks applied to input to confirm it is complete, accurate, and reasonable, using tests such as field format checks, limit checks, and validity checks.

A programmed rule that examines input data during entry and rejects or flags records that fail a specified test, such as a missing field or an out-of-range value.

A safeguard applied where data enters the system to ensure transactions are authorized, complete, and accurately captured before processing begins.

A safeguard built into data processing to ensure transactions are processed completely and correctly, including run-to-run totals and file update controls.

A sum of selected fields, such as amounts or record counts, computed before and after batch processing to verify that all records were processed without loss or alteration.

A safeguard that ensures reports and other system output are complete, accurate, and delivered only to authorized recipients.

Documented procedures for restoring systems, data, and operations after a disruptive event, including backup arrangements, alternate sites, and defined recovery priorities.

A broad strategy for keeping essential business functions running during and after a disruption, covering people, facilities, suppliers, and technology beyond just information systems.

A duplicate copy of data or software kept separately so that information can be restored if the original is lost, corrupted, or destroyed.