2. 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

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 they work now and in the future
Understanding is vital to passing most certification exams

5. The AICPA’s Top 10 Information Technologies for 2008
Information Security
Identity and Access Management
Conforming to Assurance and Compliance Standards
Privacy Management
Disaster Planning and Recovery

6. The AICPA’s Top 10 Information Technologies for 2008
IT Governance
Securing and Controlling Information Distribution
Digital Identity and Authentication Technologies
Wireless Technology
Mobile and Remote Computing

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. Study Break #1 - Answer
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

9. Input, Processing and Output Devices

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

11. MICR Symbols

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

13. Optical Character Reader

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

15. Biometric Scanners

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

17. Central Processing Units

18. Output Devices
Printers
Video output
Multimedia

19. 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

20. Format of a Computer Record

21. Secondary Storage Devices
Magnetic (hard) disks
Redundant Arrays of Inexpensive Disks (RAIDS)

22. Multiplatter Hard Disk

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

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

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

26. 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

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

28. Data Communications and Networks
Communication Channels and Protocols
Modem
Integrated Services Digital Network (ISDN)
Digital Subscriber Line (DSL)
Data Communications Protocol

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

30. Advantages of a LAN Facilitating communications
Sharing computer equipment
Sharing computer files
Saving software costs
Enabling unlike computer equipment to communicate with one another

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

32. Data Communications and Networks
Client / Server Computing

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

34. RFID Example

35. NFC Example

36. Cloud Computing Example

37. Computer Software Operating Systems Application Software
Programming Languages

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

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

40. Creation of Application Software

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

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

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

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

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46. Chapter 2