Chap 3 - IT and AISs Flashcards
The Importance of IT to Accountants
- IT must be compatible and support other components of AIS
- Accountants help clients make software and hardware purchase decisions
- Auditors evaluate computerized systems
- Accountants evaluate the efficiency and effectiveness of existing system
- IT affects how accountants work now and in the future
- Candidates must understand IT to pass most accounting certification exams
Peripheral equipment
Input equipment (keyboards), output equipment (printers), secondary storage devices (hard disks), and communications equipment (internal networking cards) are classifications of peripheral equipment. They surround the computer and help it process data.
input-processing-output cycle
The three phases of computer processing. Most accounting transactions are processed in this format
Starting point for collecting data in many AISs.
source document
source document
- Starting point for collecting data in many AISs.
- They are human-readable and can be completed by the user onsite.
- They provide evidence of a transactions authenticity, are starting points of audit trails, and can backup in case data is destroyed.
- disadvantage: Not machine readable, must be transcripted.
Data transcription
Converting data (source documents) into machine readable media.
Inefficient, labor intensive, time consuming, costly, nonproductive process that bottlenecks data, embeds errors, and provides opportunities for fraud
Point of sale (POS) devices
Allows retailers to capture information at the point at which a sale is made. Can gather and record data electronically at that time.
Bar code reader
POS device that interprets UPCs for sale. Non UPC bar codes can be used to track shipments, log received merchandise, route mail, identify books by ISBN, etc.
Magnetic Ink Character Recognition (MICR)
The odd-looking numbers on the bottom of your checks. Machine and human readable, as well as flexible(size of documents).
Magnetic strength or flux diminishes over time.
Optical character recognition (OCR)
- Older technology that uses optical readers to interpret source document data. Uses light sensing mechanisms and laser tech.
- Machine and user readable.
mark-sense media
Scantrons. Use simple shapes as characters that the user can blacken with a pencil.
turnaround documents
Documents initially prepared by a company, sent to individuals, then returned for processing. Usually by an OCR.
Small-System Input Devices
Keyboards, Computer mice, Touch pads, Joy sticks, Touch screens, Computer pens/styluses
Biometric scanner
+ Not what you know or have, but who you are.
+ Behavioral systems recognize voice, signatures, keystrokes while physiological systems recognize fingerprints, irises, retinas, faces, ears.
+ Begin with enrollment, then compares sample with template to determine “hamming distance”.
Central-processing unit (CPU)
- Main processor of a computer.
- Primary memory + microprocessor
primary memory
- Component of CPU that stores data and program instructions temporarily for immediate processing and execution.
- Known as RAM in micros, measured in gigs/billions of bytes, and consists of bytes (one character)
- volatile memory
component of CPU
2 main components : primary memory (RAM) and microprocessor . Cache or buffet memory serves as the interface between these components.
microprocessor
- Portion of CPU
- The two components of a microprocessor are the arithmetic-logic unit (ALU) and the control unit.
input/output (I/O) bound
Describes computers because speeds of the I/O operations involved in processing data are way slower than internal speeds of the processors.
printer
fall into 3 categories: (1) dot-matrix, (2) ink-jet, (3) laser.
Dot-matrix printer
Impact printers that employ tiny wires in a print head to strike an inked ribbon and create tiny dots on a print page. Cheap and can print on multipart “carbon” receipt paper
Ink-jet printers
Create characters by distributing tiny bubbles or dots of ink onto pages. Higher resolutions than dot matrix, slower than laser, but print in color.
Laser printers
Use same tech as duplicating machines. Most expensive of 3 but higher quality and speed. Many can print in color as well as connect wirelessly to LANs
volatile memory
- Primary memory
- Lost electrical power, lost memory
secondary storage
- Mass storage or auxiliary storage.
- Maintain data in permanent files
- Magnetic hard disks, CDROMs, bluray, flash disks.
Computer record
A set of data fields about one file entity, for example one employee, one inventory item, or one transaction.
Magnetic hard disk
- Secondary storage device
- also called the direct access storage devices (DASDs)
Compact disk-read only memory (CD-ROM)
- Secondary storage device
- cannot be updated (written only once)
Digital video disk (DVD)
- Secondary storage device
- resemble a CD-ROM
- the capacity is 25 times than that of CD-ROM
- newer DVD are writeable and even rewritable.
Blu-ray disc (BD)
- Secondary storage device
- more capacity than CD-Rom and DVD
- mostly used for storing movies and video games / easy recording and inhibit illegal copying > DVD
Flash memory
- solid state memory
- ex: flash drives, laptop memory cards, digital camera memory sticks, video game memory cards
- useful for accountant for creating backups of important file and transporting.
Image processing
Allows users to store graphic images in digital formats on secondary storage. Fast speeds, reduced storage space, can organize images, as well as store in central files (“who has it?”).
Electronic document & record management (EDRMs)
Systems that help organizations manage flow of electronic documents during development, allow several users to work on said document, allow for several copies/versions of document (old and new manuals or contracts)
The acronyms POS, MIC, and OCR are most closely associated with ?
a. Input devices
b. Processing devices
c. Output devices
d. Communication devices
ANS: a - Point of Sale (POS), Magnetic Ink Character Recognition (MICR), and Optical Character Recognition (OCR)
Which of these devices is capable of storing the most data? a. CD-ROM disk b. DVD disk c. USB (flash memory) device d. Magnetic (hard) disk
d- Magnetic (hard) disk -gigabyte for microcomputer and terabytes or petabytes for commercial AIS.
a. CD-ROM - 700 megabytes per disk
b. DVD - 17 gigabyte - 25 times the capacity of CD-ROM.
c. USB - gigabytes.
Data communications
Refers to transmitting data to and from different locations. Must be understood because so many AISs use them, and also must audit capabilities such as accuracy and security. Sent via communication channel over telephone, coaxial, optical fibers, micro or radio waves.
Data communications protocol
Refers to the settings that provide sending and receiving stations with a compatible transmission format.
- TCP (transmission control protocol) used for emails, and
- HTTP (hypertext transmission protocol) used for webpages.
Modem
-Transmit data over telephone line
Integrated services digital network (ISDN)
International data communications standard that transmits data, voice, or images at 128k BPS over the internet.
Digital subscriber line (DSL)
Supports data transmission at rates of up to 9 megabits per second.
Local area network (LAN)
- for data communication
- use file servers to store software and data files
- today wireless LANs.
- Advantages: (1) facilitating communication (email), (2) sharing computer equipment (printer, internet server), (3) sharing computer file (input/output data on same accounting file), (4) saving software cost, and (5) enabling unlike equipment to communicate.
Wide area network (WAN)
- computer network spanning regional, national, or global areas.
- for communication purpose.
- Internet
Antivirus software
software that is specifically designed to detect viruses and protect a computer and files from harm
Application software
Refers to computer programs that help end users such as accountants perform the tasks specific to their jobs or relevant to their personal needs.
Personal productivity software (MS office) commercial personal productivity (PMS, CAD, PPT), accounting software (payroll), comm software (email/internet), ERP
Compiler
Program that translates source code into object code that computers can execute immediately. When end users buy app software packages, they buy compiled computer programs in machine languages that are ready to execute on their computers.
computer software
- OS (enable computer run + execute the application program) + application software (enable end user to perform work-related tasks)
Computer tablet
Kindles and iPads. “Post PC Era” devices that are portable computing systems
cloud computing
- use of service providers over the Internet
- e.g: purchasing backup services from an internet vendor
The term “enrollment” is mostly associated with:
a. keyboard
b. biometric scanners
c. printers
d. modems
b - biometric scanners
the RAM of a computer is part of:
a. primary memory
b. secondary storage
c. arithmetic-logic unit
d. modem
a - primary memory
the term “I/O bound” means that:
a. computers must input and output data when executing accounting applications.
b. AIS are headed for the land of I/O
c. computers can “think” or process faster than they can read or write.
d. computers are obligated to make inferences and oversights
c - computers can “think” or process faster than they can read or write.
Video output can also be called:
a. hard-copy output
b. soft-copy output
c. image output
d. picture output
b. soft copy output
All of these are components, or layers, of a client/server computing system, except:
a. presentation layer
b. application/logic layer
c. client layer
d. data management layer
c. client layer
RAM
Random Access Memory - primary memory
