Chapter

2-1

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
Chapter
2-2

The Importance of IT to
Accountants
1.

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
Chapter
2-3

The Importance of IT to
Accountants
4.

5.

6.

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
Chapter
2-4

The AICPAs 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
Chapter
2-5

The AICPAs Top 10

Information Technologies for
2010
Paperless Technology
Laptop Security
Small Business Software
Mobile Computing
Tax Software and Electronic Filing
Server Vitalization and Consolidation
Chapter
2-6

Study Break #1
All of the following are reasons why IT is important to
accountants except:
A. Accountants often help clients make IT decisions
B. Auditors must evaluate computerized systems
C. IT questions often appear on professional certifications
examinations
D. The costs of IT are skyrocketing
Chapter
2-7

Study Break #1 - Answer

All of the following are reasons why IT is important to
accountants except:
A. Accountants often help clients make IT decisions
B. Auditors must evaluate computerized systems
C. IT questions often appear on professional certifications
examinations
D. The costs of IT are skyrocketing
Chapter
2-8

Input, Processing and

Output Devices

Chapter
2-9

Input Devices
Source documents and data
transcription
Point-of-Sale (POS) devices
Bar Code Readers
Universal Product Code (UPC)

Magnetic Ink Character Recognition

(MICR)
Chapter
2-10

MICR Symbols

Chapter
2-11

Input Devices
Optical Character Recognition (OCR)
Mark-sense media
Turnaround documents

Plastic Cards with Magnetic Strips

Microcomputer Input Devices

PDA Devices
Chapter
2-12

Common Input Devices

Chapter
2-13

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

Chapter
2-14

Biometric Scanners

Chapter
2-15

Central Processing Units

Primary Memory
Microprocessors
Computers, Processing Speeds and
AISs

Chapter
2-16

Central Processing Units

Chapter
2-17

Output Devices
Printers
Video output
Multimedia
Chapter
2-18

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
Chapter
2-19

Format of a Computer
Record

Chapter
2-20

Secondary Storage
Devices
Magnetic (hard) disks
Redundant Arrays

of Inexpensive Disks

(RAIDS)

Chapter
2-21

Multiplatter Hard Disk

Chapter
2-22

Secondary Storage
Devices
CD-ROMs
Write-once,

read-many (WORM) media

DVDs
Blu-Ray Discs
Flash memory
Image processing
Record Management Systems
Chapter
2-23

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

Chapter
2-24

Study Break #2 - Answer

The acronyms POS, MIC, and OCR are most closely associated
with:
A. Input devices
B. Processing devices
C. Output devices
D. Communication devices

Chapter
2-25

Study Break #3
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

Chapter
2-26

Study Break #3 - Answer

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

Chapter
2-27

Data Communications
and Networks
Communication Channels and Protocols
Modem
Integrated

Services Digital Network (ISDN)

Digital Subscriber Line (DSL)
Data Communications Protocol

Chapter
2-28

Data Communications
and Networks
Local Area Networks (LANs)

Chapter
2-29

Advantages of a LAN
Facilitating communications
Sharing computer equipment
Sharing computer files
Saving software costs
Enabling unlike computer equipment to
communicate
Chapter
2-30

Data Communications
and Networks
Wide Area Networks (WANs)

Chapter
2-31

Data Communications
and Networks
Client / Server Computing

Chapter
2-32

Data Communications
and Networks
Wireless Data Communications (Wi-Fi)
Wireless Application

Protocol (WAP)
Radio Frequency Identification (RFID)
Near Field Communication (NFC)

Cloud Computing

Chapter
2-33

RFID Example

Chapter
2-34

NFC Example

Chapter
2-35

Computer Software
Operating Systems
Application Software
Programming Languages

Chapter
2-36

Operating Systems

Graphical User Interfaces (GUIs)

Utility Programs
Virtual Storage
Antivirus Software and Viruses

Chapter
2-37

Application Software

Personal productivity software

Commercial productivity software
Accounting software
Communications software
Enterprise resource management
software (ERP)
Chapter
2-38

Creation of Application
Software

Chapter
2-39

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

Chapter
2-40

Study Break #4 - Answer

Purchasing backup services from an Internet vendor is an
example of:
A. OCR
B. Modem services
C. Virtual storage
D. Cloud computing

Chapter
2-41

Study Break #5
All of these are terms associated with programming languages
except:
A. Object-oriented
B. Event-driven
C. Compiler
D. Server

Chapter
2-42

Study Break #5 - Answer

All of these are terms associated with programming languages
except:
A. Object-oriented
B. Event-driven
C. Compiler
D. Server

Chapter
2-43

Copyright
Copyright 2012 John Wiley & Sons, Inc. All rights reserved.
Reproduction or translation of this work beyond that permitted in
Section 117 of the 1976 United States Copyright Act without the
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Request for further information should be addressed to the
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use of the information contained herein.

Chapter
2-44

Chapter 2

Chapter
2-45