Prepared by Paula Funkhouser University of Nevada, Reno Core Concepts of Accounting Information Systems, 13th Edition Mark G Simkin ● Jacob M Rose ● Carolyn S Norman Information Technology and AISs Chapter 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 Copyright © 2015 John Wiley & Sons, Inc All rights reserved The Importance of IT to Accountants Must be compatible and support other components of AIS Accountants often help clients make software and hardware purchases Auditors must evaluate computerized systems Copyright © 2015 John Wiley & Sons, Inc All rights reserved 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 Copyright © 2015 John Wiley & Sons, Inc All rights reserved 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 Copyright © 2015 John Wiley & Sons, Inc All rights reserved 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 Copyright © 2015 John Wiley & Sons, Inc All rights reserved Study Break #1 All of the following are reasons why IT is important to accountants except: A Accountants often help clients make IT decisions B Auditors must evaluate computerized systems C IT questions often appear on professional certifications examinations D The costs of IT are skyrocketing Copyright © 2015 John Wiley & Sons, Inc All rights reserved Input Devices • Source documents and data transcription • Point-of-Sale (POS) devices – Bar Code Readers – Universal Product Code (UPC) • Magnetic Ink Character Recognition (MICR) Copyright © 2015 John Wiley & Sons, Inc All rights reserved MICR Symbols Copyright © 2015 John Wiley & Sons, Inc All rights reserved Input Devices • Optical Character Recognition (OCR) – Mark-sense media – Turnaround documents • Plastic Cards with Magnetic Strips • Small-System Input Devices – PDA Devices 10 Copyright © 2015 John Wiley & Sons, Inc All rights reserved 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 23 Copyright © 2015 John Wiley & Sons, Inc All rights reserved 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 ã Client/Server Computing 24 Copyright â 2015 John Wiley & Sons, Inc All rights reserved Data Communications and Networks ã Local Area Networks (LANs) 25 Copyright â 2015 John Wiley & Sons, Inc All rights reserved Data Communications and Networks • Wide Area Networks (WANs) 26 Copyright © 2015 John Wiley & Sons, Inc All rights reserved Data Communications and Networks • Client / Server Computing 27 Copyright © 2015 John Wiley & Sons, Inc All rights reserved Data Communications and Networks • Wireless Data Communications (Wi-Fi) – – – – Bluetooth Wireless Application Protocol (WAP) Radio Frequency Identification (RFID) Near Field Communication (NFC) • Cloud Computing 28 Copyright © 2015 John Wiley & Sons, Inc All rights reserved RFID Example 29 Copyright © 2015 John Wiley & Sons, Inc All rights reserved NFC Example 30 Copyright © 2015 John Wiley & Sons, Inc All rights reserved Computer Software • Operating Systems (OS) ã Application Software ã Programming Languages 31 Copyright â 2015 John Wiley & Sons, Inc All rights reserved Operating Systems • Graphical User Interfaces (GUIs) • Multiprocessing • Utility Programs • Virtual Storage • Antivirus Software and Viruses 32 Copyright © 2015 John Wiley & Sons, Inc All rights reserved Application Software • • • • • Personal productivity software Commercial productivity software Accounting software Communications software Enterprise resource management software (ERP) 33 Copyright © 2015 John Wiley & Sons, Inc All rights reserved Creation of Application Software 34 Copyright © 2015 John Wiley & Sons, Inc All rights reserved Programming Languages • Object-Oriented Languages • Event-driven Languages • Compilers 35 Copyright © 2015 John Wiley & Sons, Inc All rights reserved 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 36 Copyright © 2015 John Wiley & Sons, Inc All rights reserved Study Break #5 All of these are terms associated with programming languages except: A Object-oriented B Event-driven C Compiler D Server 37 Copyright © 2015 John Wiley & Sons, Inc All rights reserved ... Antivirus Software and Viruses 32 Copyright © 2015 John Wiley & Sons, Inc All rights reserved Application Software • • • • • Personal productivity software Commercial productivity software Accounting. .. Accounting software Communications software Enterprise resource management software (ERP) 33 Copyright © 2015 John Wiley & Sons, Inc All rights reserved Creation of Application Software 34 Copyright... clients make software and hardware purchases Auditors must evaluate computerized systems Copyright © 2015 John Wiley & Sons, Inc All rights reserved The Importance of IT to Accountants Often asked