1. Chapter 1 Introduction to CBIS

2. Information Technology Trends “free” hardware easy-to-use software pre-packaged software small computers data availability data variety mass storage technologies convergence of technologies networks internet mass marketing reduction of barriers non-accounting use of IT new sys development approaches intelligent systems business re-engineering

3. Competitive Advantage –sales data warehousing/data mining –service workflow, imaging, etc. –production cad/cam –management ais, dss/es, eis, ems

4. Roles for Accountants Challenges –IT changing organization structure, management, operations –IT changing nature and economics of accounting –IT changing competitive environment Opportunities –user role –information design, development –management and control of IT –system evaluation/audit

5. Information System Control and Audit multi-disciplinary field –audit –IT management –behavioural science –computer science

6. Key Dimensions of Practice process integrity auditability compliance security availability development practices value for money

7. Introduction to CBIS concepts people infrastructure software files/data procedures/controls transaction processing –transaction processing phases –access methods –transaction processing modes –devices input transmission output storage

8. Files Data structures - list, array, table, file, database File components - file label, header & trailer records Header - file name, id creation date Trailer - # of records, end of file Records, Fields, Bytes and Bits Record - made up of fields Field - made up of chars (each of A 123 etc.) - byte Each char - coded comb. of information units - bits

9. Files (cont’d) Fixed /variable length records fixed - size and number of fields are defined in advance, easiest to work with variable - size defined but not number, except for maximum Master Files and Transaction Files (use sales example) master file - semi -permanent info. - customer #, name, address, credit limit, and a/r balance transaction file - customer #, invoice #, date, amount and other invoice data table

10. Transaction Processing Phases Transaction initiation - data capture Input preparation - coding of data Transmission/input - via LAN etc. Processing Output Error correction and reprocessing

11. Access Methods Sequential - ascending/descending - customer # - must be kept in order- slow in searches as must always search from beginning - updates are also slower as must read and recreate entire master file - normally on tape Direct/random - each record accessed independently, very fast - normally stored on magnetic disk, each record assigned a specific physical address..harder to program for as must create storage address conversion algorithm Indexed sequential access - combines benefits of each - 2 parts- data records & index that contains record keys and storage addresses. Data can be accessed either sequentially or directly

12. Access Methods -2 Data base - data management is completely separate from programs (unlike other 3 above) no duplication of data or redundancy data is stored only once data base management system allows various programs to access data for processing

13. Transaction Processing Modes On-line - direct interaction Batch vs transaction Batch all trans are grouped via a logical basis and processed at one point (e.g. inventory then sales then a/r) very economical but slow Transaction source data processed by transaction Centralized vs decentralized (distributed) systems distributed used more as networks/communications faster

14. INPUT DEVICES Punched cards - old old old Keyboards, mice Key to tape/Key to disk for data accumulation several work stations to central disk MICR (magnetic ink character recog’n- cheques) OCR (optical character recog’n)

15. COMMUNICATION DEVICES Networks - 2 or more computers linked by comm lines LANs (one building) and WANs (several buildings) STAR, RING, and BUS topologies Modems Routers Transmission lines

16. OUTPUT MEDIA and STORAGE DEVICES Printers Microfilm/microfiche Digital image processing Diskettes Hard disks Tapes use parity checking to check against tape errors- extra bit used to check the first eight CD-ROMS and WORMS

17. CPU Control Section - directs and coordinates all EDP system operations Arithmetic/Logic unit - does math calcs + what if logic Main memory - storage for Control section and ALU Stored Program concept - all programs stored within computer’s memory for execution. Registers - designed for temp storage and are capable of receiving, holding and transferring info. (e.g. address register, operation code register, etc.) Instructions - group of bits that tells computer to perform basic functions

18. Control availability: backup, recovery, disaster plans security: privacy/confidentiality integrity: completeness, accuracy, authorization maintainability/evolvability auditability: management trails value for money