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 Hardware Networks Software

EVOLUTION OF COMPUTER SYSTEMS

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 2010 Information Security Securing and Controlling Information Distribution Identify and Access Management Backup, Disaster Planning and Business Continuity Secure Electronic Collaboration 2013 Update http://www.aicpa.org/INTERESTAREAS/INFORMATIONTECHNOLOGY/RESOURCES/TOPTECHNOLOGYINITIATIVES/Pages/2013TTI.aspx

The AICPA’s Top 10 Information Technologies for 2010 Paperless Technology Laptop Security Small Business Software Mobile Computing Tax Software and Electronic Filing Server Vitalization and Consolidation

BASIC COMPONENTS OF COMPUTER SYSTEMS All computers made up of the same set of five building blocks: input, output, (I/O) memory, files arithmetic/logic unit control unit (CPU)

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

Common Input Devices

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

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

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

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 Blu-Ray Discs 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 #3 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

Data Communications and Networks Wide Area Networks (WANs)

Architectures Network Infrastructure – Determined by the physical layout and components of a network DNS, DHCP, Router, demilitarized zone, etc. Application Architecture - Determined by how functions of application programs are spread among clients and servers

Application Layer Functions Presentation logic - Presentation of info to user and acceptance of user commands Application logic - Business logic such as word processors, spreadsheets Data access logic - Processing required to access stored data (e.g., SQL) Data storage - Storing of data generated by programs (e.g., files, records)

Data Communications and Networks Client / Server Computing

Multi-tier (i.e., n-tier) Architectures

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

Computer Software Operating Systems Application Software Programming Languages

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

What an application sees… From http://www.karbosguide.com

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