1. Information Technology and AISs
Chapter 4

2. Chapter 4: Information Technology and AISs
Introduction
The Importance of Information Technology to Accountants
Input, Central Processing Units
and Output Devices
Secondary Storage Devices
Data Communications and Networks
Computer Software

3. The Importance of IT to Accountants
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

4. The Importance of IT to Accountants
Often asked to evaluate the efficiency and effectiveness of existing system
IT affects how accountants work now and in the future
Understanding IT is vital to passing most certification exams

5. The AICPA’s Top 10 Information Technologies for 2013
Managing and Retaining Data
Securing the IT Environment
Managing IT Risk and Compliance
Ensuring Privacy
Managing System Implementations

6. The AICPA’s Top 10 Information Technologies for 2013
Preventing and responding to computer fraud
Enabling decision support and analytics
Governing and managing IT investment/spending
Leveraging emerging technologies
Managing vendors and service providers

7. Study Break #1
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 often appear on professional certifications examinations
The costs of IT are skyrocketing

8. Input Devices Source documents and data transcription
Point-of-Sale (POS) devices
Bar Code Readers
Universal Product Code (UPC)
Magnetic Ink Character Recognition (MICR)

9. MICR Symbols

10. Input Devices Optical Character Recognition (OCR) Mark-sense media
Turnaround documents
Plastic Cards with Magnetic Strips
Small-System Input Devices
PDA Devices

11. Small-System Input Devices
Keyboards
Computer mice
Touch pads
Joy sticks
Touch screens
Computer pens/styluses

12. Common Input Devices

13. Input Devices Digital Video Cameras Biometric Scanners
Behavioral systems
Physiological systems
Enrollment

14. Biometric Scanners

15. Central Processing Units
Primary Memory
Microprocessors
Computers, Processor Speeds and AISs

16. Central Processing Units

17. Output Devices
Printers
Video Output
Multimedia

18. Secondary Storage Devices
Primary Memory
Volatile Memory
Lost electrical power, lost memory
Secondary Storage
Mass Storage or Auxiliary Storage
Maintain data in permanent files

19. Format of a Computer Record

20. Secondary Storage Devices
Magnetic (Hard) Disks
Redundant arrays of inexpensive disks (RAIDs)
CD-ROMs, DVDs, and Blu-Ray Discs (BD)
Fla

21. Secondary Storage Devices
CD-ROMs
Write-once, read-many (WORM) media
DVDs
Blu-Ray Discs
Flash memory
Image processing
Record Management Systems

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

23. Study Break #3
Which of these devices is capable of storing the most data?
CD-ROM disk
DVD disk
USB (flash memory) device
Magnetic (hard) disk

24. Data Communications and Networks
Communication Channels and Protocols
Modem
Integrated Services Digital Network (ISDN)
Digital Subscriber Line (DSL)
Data Communications Protocol
Local and Wide Area Networks
Client/Server Computing

25. Data Communications and Networks
Local Area Networks (LANs)

26. Data Communications and Networks
Wide Area Networks (WANs)

27. Data Communications and Networks
Client / Server Computing

28. Data Communications and Networks
Wireless Data Communications (Wi-Fi)
Bluetooth
Wireless Application Protocol (WAP)
Radio Frequency Identification (RFID)
Near Field Communication (NFC)
Cloud Computing

29. RFID Example

30. NFC Example

31. Computer Software Operating Systems (OS) Application Software
Programming Languages

32. Operating Systems Graphical User Interfaces (GUIs) Multiprocessing
Utility Programs
Virtual Storage
Antivirus Software and Viruses

33. Application Software Personal productivity software
Commercial productivity software
Accounting software
Communications software
Enterprise resource management software (ERP)

34. Creation of Application Software

35. Programming Languages
Object-Oriented Languages
Event-driven Languages
Compilers

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

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