Information Technology Knowledge - 100 Marks

Module aim

To introduce students to the reasons for the use of IT in enterprises, the link between the strategy of a
business and the IT that it uses in practice, and methods for managing IT, and to outline the types and
systems of internal control used in computer-based business systems.

On completion of this module, students will be able to:

• explain the importance of information within an organization in decision making and financial reporting
and describe the features of information systems that organizations use
• explain general systems concepts and to describe and state the characteristics of the components of IT
processing and communication systems
• explain general systems concepts and to describe and state the characteristics of the components of IT
processing and communication systems
• describe how transactions are processed, how data is organized and stored and the roles and responsibilities
within the IT function
• outline the organization and management required relating to IT within organizations
• describe the types of software used by individuals within organizations and by accounting professionals
• describe how organizations manage electronic communication and explain the risks and benefits in relation
to electronic communication
• identify and explain the components of internal control within computer-based business systems

Specification Grid
This grid shows the relative weightings of subjects within this module and should guide the relative study
time spent on each. Over time the marks available in the assessment will equate to the weightings below,
while slight variations may occur in individual assessments to enable suitable questions to be set.

Weighting
(indicative %)
1 Information within organizations 15
2 Information Technology architecture 25
3 Management of IT
30
4 Communication and IT
5 Internal control in computer-based business systems 30

1 Information within organizations

Candidates should be able to explain the importance of information within an organization in decision
making and financial reporting and describe the features of information systems that organizations
use.

In the examination, candidates may be required to

a. explain the significance of information as a key resource within organizations
b. state the attributes of information and the distinction between information and data
c. identify the operating, managerial and strategic levels in organizations
d. indicate the characteristics of decisions and information needs at different organizational levels
e. describe the characteristics of information systems between and within organizations
f. describe the role IT plays in information systems, in particular financial reporting systems.

Q-1) What is information? [ST]

Q-2) When information is valuable?
Or
What are the characteristics of valuable information?
Information Technology 2
Chapter # 1: Information within organization
Q-3) Nature and Type of information.
Q-4) What are the differences between data and information? [ST, ND10]
Q-5) What are the importances of Information?
Q-6) How information system impact organizations and business? [ST]
Q-7) What are the economic impacts of IT?
Q-8) What are the important attribute of information?
Q-9) Define Information Technology. [MJ10]
Q-10) What is decision support System (DSS)?
Q-11) What are the characteristics of DSS?
Q-12) Write down the benefits of decision support system. [MJ09]
Q-13) What are the components of DSS?
Q-14) In where DSS is applied?
Q-15) What is Transaction Processing System (TPS)?
Q-16) What are the functions of TPS?
Q-17) What is Management Information System (MIS)?
Q-18) What is Executive Information System (EIS)?
Q-19) Define passive and interactive information system and give example of each. [ND10]
Q-20) What is batch processing?
Q-21) What is rapid response processing?
Q-22) What is knowledge based system? [MJ09]
Q-23) Can it be a part of information system? Explain. [MJ09]
Q-24) What is PIVOT table?
Q-25) Types of KBS.

- Ujjal Das
ujjalhfc@gmail.com
Information Technology 3
Chapter # 1: Information within organization
Q-1) What is information?[ST] (i) It changes both the relative cost
of capital and the costs of information.
Information is data that have been put into a (ii) Information system technology
meaningful and useful context. can be viewed as a factor of production
It has been defined by Davis and Olson as – that can be substituted for traditional
“Information is data that has been processed capital and labor.
into a form that is meaningful to the recipient (iii) IT also obviously affects the cost
and is of real or perceived value in current or and quality of information and changes
progressive decision”. the economics of information.
(iv) It can reduce transaction costs.
(v) It can help firms lower the cost
Q-2) When information is valuable? of market participation.
Or
What are the characteristics of
valuable information? Q-8) What are the important attribute
of information?
It is only high value of information if it is:
(a) Reliable, (a) Availability,
(b) Clear, (b) Purpose,
(c) Complete, (c) Mode and format,
(d) Timely, (d) Decay,
(e) Right quantity, (e) Frequency,
(f) Relevant, (f) Rate,
(g) Completeness,
(h) Reliability,
Q-3) Nature and Type of information. (i) Cost benefit analysis,
(j) Validity,
Information, broadly, can be divided in the (k) Quality,
context of business organization into two (l) Transparency,
different types – (m) Value of information,
(i) internal information and
(ii) External information
Q-9) Define Information Technology.
[MJ10]
Q-4) What are the differences between
data and information? [ND10] Information Technology (IT) is a general term
that describes any technology that helps to
produce, store, communicate and/or
Q-5) What are the importances of disseminate information.
Information?

(i) Information technology is Q-10) What is decision support System

fundamental to the success of any (DSS)?
business
(ii) The information that is collected A Decision Support System (DSS) can be
and/or assembled in any business is defined as a system that provides tools to
as valuable a resource as capital or managers to assist them in solving semi
people. structured and unstructured problems in their
(iii) Information may cover: own, somewhat personalized way.
- market trends
- buying references
- customer profiles Q-11) What are the characteristics of
(iv) it may be processed, summarized, DSS?
and analyzed by computers before Q-12) Write down the benefits of decision
being used by managers as the basis support system. [MJ09]
for decision making
The decision support systems are
characterized by at least three properties:
Q-6) How information system impact (a) They support semi structured or
organizations and business? [ST] unstructured decision making,
(b) They are enough flexible to
response the changing needs of
Q-7) What are the economic impacts of decision makers,
IT? (c) They are easy to use,

Economic Impacts:
- Ujjal Das
ujjalhfc@gmail.com
Information Technology
Chapter # 1: Information within organization
Q-13) What are the components of DSS?
A decision support system has four basic
components:
(a) The users,
(b) One or more databases,
(c) Planning language,
(d) Model base,
Q-14) In where DSS is applied?
(i) Cost Accounting System,
(ii) Capital Budgeting System,
(iii) Budget Variance Analysis System,
(iv) General Decision support System,
Q-15) What is Transaction Processing
System (TPS)?
TPS at lowest level of management is an
information system that manipulated data
from business transactions.
Q-16) What are the functions of TPS?
A TPS involves the following activities:
(i) Capturing data to organize in files or
database,
(ii) Processing file/database using
application software,
(iii) Generating information in the form of
report,
(iv) Processing of queries from various
quarters of the organization,
Q-17) What is Management Information
System (MIS)?
A Management Information System (MIS) has
been defined by Davis Olson as ‘an integrated
user-machine system designed for providing
information to support operation control,
management control and decision making
functions in an organization.
A management information system is software
that allows the mangers within a company to
access and analyze data.
Q-18) What is Executive Information
System (EIS)?
An executive information system (EIS) –
which is sometimes referred to as an
executive support system (ESS) – is a DSS
that is designed to meet the special needs of
managers.
4
Q-19) Define passive and interactive
information system and give example
of each. [ND10]
Q-20) What is batch processing?
A batch processing system is used when the
output does not have to be produces
immediately. Other factors are that the
application will tend to use a large amount of
data that processing will tend to be of the
same type for each set of data and that
human intervention is not necessary.
Q-21) What is rapid response
processing?
Rapid response processing referred to as real
time processing. Real time processing can be
thought of as being used in process control
where the results of the process are used to
inform the next input.
Q-22) What is knowledge based system?
[MJ09]
A knowledge based system (KBS) a system
where all the expert human knowledge
covering a particular topic is brought together
and made available to the user through a
computer system which uses the facts in its
knowledge base by applying rules that may
sensibly be applied to the knowledge.
Q-23) Can knowledge based system be a
part of information system? Explain.
[MJ09]
Q-24) Types of KBS.
There are three different types of knowledge-
based system.
(i) Diagnostic
(ii) Advice Giving
(iii) Decision Making
Q-25) What is PIVOT table?
One of the most powerful analytical tools are
pivot tables- a tool used in spreadsheets that
allows the user to take data and pivot, or
turn, it in many different ways so the
information can viewed from different
perspectives.
- Ujjal Das
ujjalhfc@gmail.com