Chapter 2: Information Technology and AISs Introduction The Importance of Information Technology to Accountants Input, Processing and Output Devices Secondary Storage Devices Data Communications and Networks Computer Software

The Importance of IT to Accountants Must be compatible and support other components of AIS 2. Accountants often help clients make software and hardware purchases 3. Auditors must evaluate computerized systems

The Importance of IT to Accountants Often asked to evaluate the efficiency and effectiveness of existing system IT affects how they work now and in the future Understanding is vital to passing most certification exams

The AICPA’s Top 10 Information Technologies for 2008 Information Security Identity and Access Management Conforming to Assurance and Compliance Standards Privacy Management Disaster Planning and Recovery

The AICPA’s Top 10 Information Technologies for 2008 IT Governance Securing and Controlling Information Distribution Digital Identity and Authentication Technologies Wireless Technology Mobile and Remote Computing

Study Break #1 All of the following are reasons why IT is important to accountants except: Accountants often help clients make IT decisions Auditors must evaluate computerized systems IT questions often appear on professional certifications examinations The costs of IT are skyrocketing

Study Break #1 - Answer All of the following are reasons why IT is important to accountants except: Accountants often help clients make IT decisions Auditors must evaluate computerized systems IT questions often appear on professional certifications examinations The costs of IT are skyrocketing

Input, Processing and Output Devices

Input Devices Source documents and data transcription Point-of-Sale (POS) devices Bar Code Readers Universal Product Code (UPC) Magnetic Ink Character Recognition (MICR)

MICR Symbols

Input Devices Optical Character Recognition (OCR) Mark-sense media Turnaround documents Plastic Cards with Magnetic Strips Microcomputer Input Devices PDA Devices

Optical Character Reader

Input Devices Digital Cameras Biometric Scanners Behavioral systems Physiological systems Enrollment Hamming distance

Biometric Scanners

Central Processing Units Primary Memory Microprocessors Computers, Processing Speeds and AISs

Central Processing Units

Output Devices Printers Video output Multimedia

Importance of Secondary Storage Devices Primary Memory Volatile Memory Lost electrical power, lost memory Secondary Storage Mass Storage or Auxiliary Storage Maintain data in permanent files

Format of a Computer Record

Secondary Storage Devices Magnetic (hard) disks Redundant Arrays of Inexpensive Disks (RAIDS)

Multiplatter Hard Disk

Secondary Storage Devices CD-ROMs Write-once, read-many (WORM) media DVDs Flash memory Image processing Record Management Systems

Study Break #2 The acronyms POS, MIC, and OCR are most closely associated with: Input devices Processing devices Output devices Communication devices

Study Break #2 - Answer The acronyms POS, MIC, and OCR are most closely associated with: Input devices Processing devices Output devices Communication devices

Study Break #3 Which of these devices is capable of storing the most data? CD-ROM disk DVD disk USB (flash memory) device Magnetic (hard) disk

Study Break #3 - Answer Which of these devices is capable of storing the most data? CD-ROM disk DVD disk USB (flash memory) device Magnetic (hard) disk

Data Communications and Networks Communication Channels and Protocols Modem Integrated Services Digital Network (ISDN) Digital Subscriber Line (DSL) Data Communications Protocol

Data Communications and Networks Local Area Networks (LANs)

Advantages of a LAN Facilitating communications Sharing computer equipment Sharing computer files Saving software costs Enabling unlike computer equipment to communicate with one another

Data Communications and Networks Wide Area Networks (WANs)

Data Communications and Networks Client / Server Computing

Data Communications and Networks Wireless Data Communications (Wi-Fi) Wireless Application Protocol (WAP) Radio Frequency Identification (RFID) Near Field Communication (NFC) Cloud Computing

RFID Example

NFC Example

Cloud Computing Example

Computer Software Operating Systems Application Software Programming Languages

Operating Systems Graphical User Interfaces (GUIs) Utility Programs Virtual Storage Antivirus Software and Viruses

Application Software Personal productivity software Commercial productivity software Accounting software Communications software Enterprise resource management software (ERP)

Creation of Application Software

Study Break #4 Purchasing backup services from an Internet vendor is an example of: OCR Modem services Virtual storage Cloud computing

Study Break #4 - Answer Purchasing backup services from an Internet vendor is an example of: OCR Modem services Virtual storage Cloud computing

Study Break #5 All of these are terms associated with programming languages except: Object-oriented Event-driven Compiler Server

Study Break #5 - Answer All of these are terms associated with programming languages except: Object-oriented Event-driven Compiler Server

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Chapter 2