Professional Documents
Culture Documents
Information System
Processes data and
transactions
Provide users with
the information
needed
Effectively and
efficiently manage
an organization
General Concept
Input
1. Transaction
Processes
2. Collection
of Data
3. Entering
data into the
system
Processing
Manual versus
Computerized
System
Output
Providing
users (external
and internal)
with
information
Accounting Information
System
Transaction Processing System
converts economic events into financial
transactions
SYSTEM DEVELOPMENT
AND LIFE-CYCLE
Planning
Analysis
Design
Development
Testing
Implementation
Maintenance
Performance levels
Reliability
Quality
Interfaces
Security and privacy
Constraints and limitations
Functional capabilities
Data structures and elements
SDLC Implementation
Phase
Parallel implementation
Plunge implementation
Pilot implementation
Phased implementation
BASIC CONCEPTS OF
COMPUTERS
Types of computers
Supercomputers
Mainframe
computers
Servers
Microcomputers
(e.g., desktop
computers, laptop
computers)
Tablets/Smart
Phones/Personal
Digital Assistants
Parts of a Computer
Hardware
Central Processing
Unit (CPU)
Arithmetic/Logic Unit
Primary Memory
RAM (random-access
memory)
ROM (read-only
memory).
Control Unit
Parts of a Computer
Hardware
Storage Devices
Magnetic tape
Magnetic disks
RAID (Redundant array
of independent
Compact Discs
Solid State Drives
(SSDs) also called flash
drives, or USB drives
Cloud-Based Storage
Parts of a Computer
Hardware
Input Devices
Key-to-tape and key-to-disk
Visual display terminal/monitors
Mouse, joystick, light pens
Touch-sensitive screen
Turnaround documents
Magnetic tape reader
Magnetic ink character reader (MICR)
Scanner
Automatic teller machine (ATM)
Radio Frequency Identification (RFID)
Point-of-sale (POS) recorders
Voice recognition
Electronic commerce and electronic data interchange
Parts of a Computer
Hardware
Output Devices
Monitors
Printers
Plotters
Computer
output to
microfilm or
microfiche
(COM)
Parts of a Computer
Software
General
Software
Operating
system (e.g.,
Windows, Linux,
Unix)
Utility
programs
Communicatio
ns software
Parts of a Computer
Software
Application Software
Word processing, graphics,
spreadsheets, email, and database
systems
Accounting software
Low-end (e.g. Peach Tree, Quickbooks)
High-end(e.g., general ledger, receivables)
Enterprise Resource Planning (ERP)
Methods of Processing
Batch Processing
Online real-time (OLRT) or direct
access processing Online transaction processing
(OLTP) (bank automatic teller systems
and Internet website sales)
Online analytical processing (OLAP)
Decentralized
Processing and storage on computers at multiple
locations.
Computers involved are not interconnected by a
network
Distributed
Processing at various sites but the overall information
is in one database.
Processing may be on either a batch or online real-time
basis.
Data Organization
Bit
Byte
Field
Record
File
Table
Database
Array
Master file
Detail or
transaction file
Traditional file
processing
systems
Advantages
Disadvantages
1. Currently operational for many
existing (legacy) systems
2. Often cost effective for simple
applications
Database systems
Advantages
1] Data independenceData can be
used relatively easily by differing
applications.
2] Minimal data redundancyThe
manner in which data is structured
results in information being recorded in
only one place, thus making updating
much easier than is the case with
traditional file systems.
3] Data sharingThe sharing of data
between individuals and applications is
relatively easy.
4] Reduced program maintenance.
5] Commercial applications are
available for modification to a
companys needs.
Disadvantages
1] Need for specialized personnel with
database expertise
2] Installation of database costly
3] Conversion of traditional file
systems (legacy systems) costly
4] Comprehensive backup and
recovery procedures are necessary.
Database Terminologies
Database
Normalization
Database management system
Data independence
Data Dictionary
Structured query language
(SQL)
Data definition language (DDL)
Data manipulation language
(DML)
Data control language (DCL)
Data modeling
Entity-relationship modelingentities (e.g.
customer, product) and relations (buys,
pays for).
Primary key
Foreign key
Database structures
Hierarchical
Networked
Relational
Objectoriented
Objectrelational
Distributed
Database controls
User department
Access controls
Restricting privileges
Logical views
Types of Network
As to geographical scope
Personal area network (PAN)
Local area networks (LAN)
Metropolitan area network (MAN)
Wide area networks (WAN)
As to Ownership
Private
Public
Cloud computing/cloud services
As to use of Internet
Internet
Intranet
Extranet
ELECTRONIC DATA
INTERCHANGE (EDI)
Point-to-point
Advantages
a] No reliance on third parties
for computer processing.
b] Organization controls who
has access to the network.
c] Organization can enforce
proprietary (its own) software
standard in dealings with all
trading partners.
d] Timeliness of delivery may
be improved since no third
party is involved.
Disadvantages
a] Must establish connection
with each trading partner
b] High initial cost
c] Computer scheduling issues
d] Need for common protocols
between partners
e] Need for hardware and
software compatibility
Value-added network
(VAN)
Advantages
Disadvantages
a] Reduces communication and data
protocol problems since VANs can
deal with differing protocols
(eliminating need for trading partners
to agree on them).
b] Partners do not have to establish
the numerous point-to-point
connections.
c] Reduces scheduling problems since
receiver can request delivery of
transactions when it wishes.
d] In some cases, VAN translates
application to a standard format the
partner does not have to reformat. e]
VAN can provide increased security.
a. ] Cost of VAN
b] Dependence upon VANs systems
and controls c] Possible loss of data
confidentiality
Public networks
Advantages
a] Avoids cost of proprietary
lines
b] Avoids cost of VAN
c] Directly communicates
transactions to trading partners
d] Software is being developed
which allows communication
between differing systems.
Disadvantages
a] Possible loss of data
confidentiality on the Internet
b] Computer or transmission
disruption
c] Hackers and viruses
d] Attempted electronic frauds
Proprietary networks
Organizations (e.g., health care,
banking) have developed their own
network for their own transactions.
These systems are costly to develop
and operate (because of proprietary
lines), although they are often
extremely reliable.
Controls Required
Authenticati
on
Packets
Encryption
ACCOUNTING
INFORMATION SYSTEM
Accounting Records
Manual Systems
Documents (Source, Product, and Turnaround)
Journals (general and Special)
Ledgers (General and Subsidiary)
Computerized
Master files: contain account data that are updated
from transaction data: ledgers.
Transaction files: hold records from events that will
change master files: journals.
Reference files: hold the transaction processing
standards or rules: vendors, prices.
Archive files: are historical files of past journals and
ledgers.