Chapter

2-1
 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
Chapter
2-2
 REASONS FOR IMPORTANCE
OF IT TO ACCOUNTANTS

1) Must be compatible and support

other components of AIS
2) Accountants often help clients
make software and hardware
decisions
3) Auditors must evaluate
computerized systems
Chapter
2-3
 REASONS FOR IMPORTANCE
OF IT TO ACCOUNTANTS

4. Often asked to evaluate effectiveness

and efficiency of existing system
5. IT will effect how they work in the
future
6. Understanding how IT affects
accounting systems is vital to passing
most certification exams
Chapter
2-4
 The Importance of Information
Technology to Accountants

The AICPA’s Top 10 Information Technologies for

2006
 Information Security
 SOX Assurance and Compliance Applications
 Disaster Planning and Recovery
 IT Governance
 Privacy Management
 Digital Identity and Authentication Technologies
 Wireless Technology
 Application and Data Integration
 Peerless Digital Technologies and Knowledge Management
 Spyware Detection and Removal
Chapter
2-5
 Importance of IT to
Accountants

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 appear on certification exams
d. The costs of IT are skyrocketing
Chapter
2-6
 Input, Processing and
Output Devices

Input Devices
 Source documents and data transcription
 POS devices
 MICR
 OCR
 Plastic cards with magnetic strips
 Microcomputer input devices
 Personal Data Assistant
Chapter Biometric scanners
2-7
 Input, Processing and
Output Devices

Central Processing Units

 Primary memory
 Microprocessors
 Computers, processing speeds and
AISs

Chapter
2-8
 Input, Processing and
Output Devices

Output Devices
 Printers
 Video output
 Multimedia

Chapter
2-9
 Input, Processing and
Output Devices

The acronyms POS, MIC, and OCR are

most closely associated with:
a. Input devices
b. Processing devices
c. Output devices
d. Communication devices

Chapter
2-10
 NEED FOR SECONDARY
STORAGE DEVICES

Primary memory is volatile memory-lose

electrical power memory loses its
contents
Secondary storage stores data on
permanent media that maintain their
accuracy and integrity, yet permit access

Chapter
2-11
 Secondary Storage Devices

Magnetic (hard) disks

Floppy disks
CD-ROMs and DVDs
Flash memory
Image processing

Chapter
2-12
 Secondary Storage Devices

Which of these devices is capable of

storing the most data?
a. CD-ROM disk
b. DVD disk
c. USB (flash memory) drive
d. Magnetic (hard) drive

Chapter
2-13
 Data Communications
and Networks

Communication Channels and Protocols

LANs
WANs
Client/Server Computing
Wireless Data Communications
RFID

Chapter
2-14
 Computer Software

Operating Systems
Application Software
Programming Languages

Chapter
2-15
 Copyright

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information contained herein.

Chapter
2-16
Chapter 2

Chapter
2-17