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

REASONS FOR IMPORTANCE OF IT TO ACCOUNTANTS Must be compatible and support other components of AIS Accountants often help clients make software and hardware decisions Auditors must evaluate computerized systems

REASONS FOR IMPORTANCE OF IT TO ACCOUNTANTS Often asked to evaluate effectiveness and efficiency of existing system IT will effect how they work in the future Understanding how IT affects accounting systems is vital to passing most certification exams

The Importance of Information Technology to Accountants The AICPA’s Top 10 Information Technologies for 2006 Information Security SOX Assurance and Compliance Applications Disaster Planning and Recovery IT Governance Privacy Management Digital Identity and Authentication Technologies Wireless Technology Application and Data Integration Peerless Digital Technologies and Knowledge Management Spyware Detection and Removal

Importance of IT to Accountants All of the following are reasons why IT is important to accountants except: Accountants often help clients make IT decisions Auditors must evaluate computerized systems IT questions appear on certification exams The costs of IT are skyrocketing

Input, Processing and Output Devices Input Devices Source documents and data transcription POS devices MICR OCR Plastic cards with magnetic strips Microcomputer input devices Personal Data Assistant Biometric scanners

Input, Processing and Output Devices Central Processing Units Primary memory Microprocessors Computers, processing speeds and AISs

Input, Processing and Output Devices Printers Video output Multimedia

Input, Processing and Output Devices The acronyms POS, MIC, and OCR are most closely associated with: Input devices Processing devices Output devices Communication devices

NEED FOR SECONDARY STORAGE DEVICES Primary memory is volatile memory-lose electrical power memory loses its contents Secondary storage stores data on permanent media that maintain their accuracy and integrity, yet permit access

Secondary Storage Devices Magnetic (hard) disks Floppy disks CD-ROMs and DVDs Flash memory Image processing

Secondary Storage Devices Which of these devices is capable of storing the most data? CD-ROM disk DVD disk USB (flash memory) drive Magnetic (hard) drive

Data Communications and Networks Communication Channels and Protocols LANs WANs Client/Server Computing Wireless Data Communications RFID

Computer Software Operating Systems Application Software Programming Languages

Copyright Copyright 2008 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 express written permission of the copyright owner is unlawful. Request for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc. The purchaser may make backup copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information contained herein.

Chapter 2