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 Hardware

Data Communications and Networks Networks

Computer Software Software
Chapter
2-2
EVOLUTION OF COMPUTER
SYSTEMS

Chapter
2-3
 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
2-4
 The Importance of IT to
Accountants

4. Often asked to evaluate the efficiency and

effectiveness of existing system

5. IT affects how they work now and in the

future

6. Understanding is vital to passing most

certification exams
Chapter
2-5
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/TOPTECHNOL Chapter
OGYINITIATIVES/Pages/2013TTI.aspx 2-6
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

Chapter
2-7
 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) 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
Central Processing Units and
Primary Memory

Microprocessors

Computers, Processing Speeds and

AISs

Primary Memory
Chapter
2-15
Central Processing Units

Chapter
2-16
 Output Devices

Printers

Video output

Multimedia

Chapter
2-17
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
2-18
 Secondary Storage Devices

Magnetic (hard) disks

 Redundant Arrays of Inexpensive Disks
(RAIDS)

Chapter
2-19
Multiplatter Hard Disk

Chapter
2-20
 Secondary Storage Devices

CD-ROMs
 Write-once, read-many (WORM) media
DVDs
Blu-Ray Discs
Flash memory
Image processing
Record Management Systems
Chapter
2-21
 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
2-22
 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
2-23
 Data Communications
and Networks

Communication Channels and Protocols

 Modem
 Integrated Services Digital Network (ISDN)
 Digital Subscriber Line (DSL)
 Data Communications Protocol

Chapter
2-24
 Data Communications
and Networks

Local Area Networks (LANs)

Chapter
2-25
 Advantages of a LAN

Facilitating communications
Sharing computer equipment
Sharing computer files
Saving software costs
Enabling unlike computer equipment to
communicate
Chapter
2-26
 Data Communications
and Networks

Wide Area Networks (WANs)

Chapter
2-27
 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 Chapter
2-28
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) Chapter
2-29
 Data Communications
and Networks

Client / Server Computing

Chapter
2-30
Multi-tier (i.e., n-tier)
Architectures

Chapter
2-31
 Data Communications
and Networks

Wireless Data Communications (Wi-Fi)

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

Cloud Computing

Chapter
2-32
RFID Example

Chapter
2-33
NFC Example

Chapter
2-34
 Computer Software

Operating Systems

Application Software

Programming Languages

Chapter
2-35
 Operating Systems

Graphical User Interfaces (GUIs)

Utility Programs
Virtual Storage
Antivirus Software and Viruses

Chapter
2-36
What an application sees…

From http://www.karbosguide.com

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