Key Terms
Example
A customer claims they never received a shipment. The audit trail includes the original order, the picking ticket, the s
Accounting subsystems inside an ERP
Revenue, expenditure, production, payroll, and general ledger. Non-accounting modules: HR, marketing, R&D.
EXAMPLE
A customer buys $1,000 of goods and pays $300 cash; promises to pay $700 later. The entire transaction goes in the cash
Data analytics
Analyzing large volumes of transaction data to find trends and patterns. Software tools include Power BI, SAS, SPSS, and
Big data
Data sets from online transactions and other digital sources so large that specialized software is required to process t
Blockchain
A shared ledger platform used by all parties to a transaction. Eliminates the need for each party to maintain separate l
Cryptocurrency
Digital currency using encryption technology. Operates without a bank to transfer or clear funds.
Artificial intelligence (AI)
Systems programmed to mimic human reasoning and perform tasks previously requiring human judgment; freeing accountants f
Expert systems
Software that asks a series of questions and uses each answer to determine the next question or recommendation. Used in
Forensic accounting
Using accounting and computer skills to investigate financial records for fraud or embezzlement. Requires knowledge of b
AIS
System of processes to collect, record, process, and report transaction data for internal and external users.
Source document
Original record proving a transaction occurred.
Turn-around document
Output document (invoice) that becomes an input document (remittance advice) when returned with payment.
Audit trail
Step-by-step documentary history of a transaction from inception to completion.
Special journal
A journal dedicated to one recurring transaction type (sales, purchases, cash receipts, cash disbursements).