2. 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

3. EVOLUTION OF COMPUTER SYSTEMS

4. 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

5. 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

6. 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

7. 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

8. 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)

9. Input, Processing and Output Devices

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

11. MICR Symbols

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

13. Common Input Devices

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

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

16. Central Processing Units

17. Output Devices
Printers
Video output
Multimedia

18. 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

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

20. Multiplatter Hard Disk

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

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

23. 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

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

25. Data Communications and Networks
Local Area Networks (LANs)

26. Advantages of a LAN Facilitating communications
Sharing computer equipment
Sharing computer files
Saving software costs
Enabling unlike computer equipment to communicate

27. Data Communications and Networks
Wide Area Networks (WANs)

28. 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

29. 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)

30. Data Communications and Networks
Client / Server Computing

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

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

33. RFID Example

34. NFC Example

35. Computer Software Operating Systems Application Software
Programming Languages

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

37. What an application sees…
From

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

39. Creation of Application Software

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