Accounting 361 Exam 2

Accounting 361 Exam 2 - Accounting 361-Exam 2...

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Accounting 361—Exam 2 COMPUTER-BASED AIS Ch. 1 (20-31) *Centralized data processing—all data processing is performed by one or more large computers housed at a central site that serve users throughout the organization -data administration: headed by the database administrator is responsible for the security and integrity of the database -data processing: the data processing group manages the computer resources used to perform the day-to-day processing of transactions. -functions include—data control, data conversion, computer operations, and data library -usually automated -systems development and maintenance: the systems maintenance group assumes responsibility for keeping it current with users needs -80-90 percent of the systems cost throughout its life -participants in system development include system professionals, end users, and stakeholders -need to carefully analyze what is best for your company—cost and operational feasibility Information systems models: -manual process model -flat-file systems -database approach -REA -Manual process model -oldest, most traditional form of accounting systems -consists of physical events, resources, and personnel that characterize many business processes -tasks such as order-taking, warehouse materials, manufacturing goods for sale, shipping goods to customers, and placing orders with vendors -physical task of record keeping -manual records are never used in practice today -it does help us understand where everything is coming from and helps us understand internal control activities -Flat-file model (‘Stovepipped’ or ‘silos’ systems) -another traditional system
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-associated with legacy systems (large mainframe systems) -will be replaced by database systems -flat-file model describes an environment in which individual data files are not related to other files -stand alone applications -a lot of data redundancy—same data is stored in multiple places of the system -problems: data storage, data updating, and currency of information -data cannot flow seamlessly from one module to the next—limits data integration -updates will have to be entered into all parts of the system -creates excessive storage costs -‘task data dependency’—users may not be able to obtain data they need to make a decision In class notes we focus on database model and REA model *The Database Model -an organization can use a database model to overcome problems of the silo system -organizational data is centralized into a common database that is shared by other users -with the organization’s data in a central location, all users have access to the data they need to achieve their respective objectives -access to the data resource is controlled by a database management system (DBMS) -DBMS is a special software system that is programmed to know which data elements each user is authorized to access -the organization’s procedures for assigning user authority are an important control issue for auditors to consider Problems that are overcome using a database model:
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This note was uploaded on 01/31/2012 for the course ACC 361 taught by Professor Eighme during the Fall '10 term at Miami University.

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Accounting 361 Exam 2 - Accounting 361-Exam 2...

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