Chapter 2: Information Technology and AISs

2. Chapter 2:Information Technology and AISs • Introduction • The Importance of Information Technologyto 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 • http://www.aicpa.org/INTERESTAREAS/INFORMATIONTECHNOLOGY/RESOURCES/TOPTECHNOLOGYINITIATIVES/Pages/2013TTI.aspx

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

25. Data Communicationsand 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 Communicationsand 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 Communicationsand Networks • Client / Server Computing

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

32. Data Communicationsand 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 http://www.karbosguide.com

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