CA51013 - IT APPLICATION TOOLS IN BUSINESS
Module 1: Introduction to Information
Systems: Accountant’s Perspective
1. 1 Information Environment
Information
A business resource that:
● Needs to be appropriately managed, and
● Is vital to the survival of contemporary
businesses
Fundamental objectives of information common to
all organizations
● Support the firm’s day-to-day operations
● Support management decision making
➢ The accounting information is very important
for the management or the decision making
body of the organization. The management
cannot decide without reasonable information
for backing it up. To make a decision, it has to
be based on genuine facts and figures. For
deciding every level of management,
information is crucial. For making the right
decision, management depends on statistical
data and information that accounting provides.
● Support the stewardship function
management
➢ The role of the management is very
important in the overall development of a
business organization. The functions of
management are planning, organizing,
collecting business elements, motivating,
coordinating, controlling and budgeting,
etc. Successful completion of these
functions of management depends on an
efficient accounting system.
Internal & External Information Flows
❖ Top Management
- Stakeholders
❖ Middle Management
❖ Operations Management
❖ Operations Personnel/Day-to-day Operations
- Customers
- Suppliers
➔ Each user group has unique information
requirements. The higher the level of the
organization, the greater the need for
aggregation and less the need for detail
What is an Information System?
System
● a group of interrelated multiple
components or subsystems that serve a
common purpose
Information System
● set of formal procedures by which data
are collected, processed the info and
distribute to users
Information has two (2) subsystems:
1. Management Information System (MIS)
a. System that processes the
non-financial transactions, not
normally processed by traditional
accounting information systems.
b. Supports the four functional areas of
business accounting and finance,
sales, marketing, manufacturing,
distribution, and human resources.
of
2. Accounting Information System (AIS)
a. Identifies, collects,
processes, communicate economic
information about a firm using a wide
variety of technologies
- It captures and records the
financial effects of the firm’s
transactions
b. Distribute transaction information to
operations personnel to coordinate
many key tasks
Framework/ Subsystems of Accounting
Information System
a) General Ledger/ Financial Reporting
System (GL/FRS)
● Non-discretionary reporting is a type of
reporting in which the organization has
few or no choices in the information it
provides.
 ● Much of this information consists of
traditional financial statements, tax
returns and other legal documents.
b) Management Reporting System (MRS)
● Discretionary reporting is a type of
reporting in which the organization can
choose what information to report and
how to present it.
c) Transaction Processing System (TPS)
● Expenditure Cycle
➔ Purchase System
➔ Cash Disbursement System
➔ Payroll Processing System
➔ Fixed Asset System
● Conversion Cycle
➔ Cost Accounting System
➔ Production and Planning Control
System
● Revenue Cycle
➔ Sales Processing System
➔ Cash Receipts System
Accounting Information System are
specialized subset of information system that
processes:
● Financial transactions; e.g. sale of goods
● Non Financial transactions that directly
affect the processing of financial
transactions; e.g. addition of newly
approved vendor
● Transaction > Information System >
Information > User Decision
Transactions
● are events that affect the areas of interest
to the organization and are processed by
its information system as a unit of work.
It can be categorized into two types:
1. Financial Transactions: economic
event that affects the assets and
equities of the organization.
- It is measured in financial terms
and is reflected in the accounts of
the firm
2. Non-financial Transactions: events
that do not hit the narrow definition of
financial transactions
General Model for Accounting
Information Systems
AIS is a model that describes all of the
information systems regardless of their
technological architecture.
1. Transactions or Data Sources
● Data Sources are financial transactions
that enter the information system from
internal and external sources.
I. External Source of Data:
- External financial
transactions are the most
common source of data for
most organizations.
- Examples include sale of
goods or services, purchase of
inventory, receive of cash, and
disbursement of cash
including payroll.
II. Internal Sources of Data:
- Internal financial transactions
involve the exchange or
movement of resources
within the organization.
- Examples include the
movement of raw materials to
work in process (WIP),
application of labor and
overhead to WIP, transfer of
WIP to finished goods
inventory, and depreciation of
equipment.
2. Transforming the Data into Information
● Data collection is the first operational
stage in the information system.
It involves:
I. Capturing transaction data
II. Recording data on to forms
III. Editing and validating data
3. Data Processing
● Data processing is a group that
manages the computer resources used
to perform the day-to-day processing
of transactions.
 ● It involves classifying, transcribing, regulatory agencies, tax authorities,
sorting, batching, merging, calculating, suppliers, and customers
summarizing, and comparing collected B. Internal End Users: management at
data. all levels of the organization as well
as operations personnel
4. Database Management
● Once processed, data is stored in a 7. Feedback
repository or database. ● Feedback is a form of output that is
- The organization’s database is its sent back to the system as a source of
physical repository for financial and data.
non financial data. ● It is usually used as a basis for
- It could be a filing cabinet or a improvement of the accounting
computer disk. information system.
● Database Management includes
storing, retrieving or deleting processed Data Hierarchy
data.
- It can also refer to a special ★ Data Hierarchy refers to the systematic
software system that is organization of data. It is a basic concept in data
programmed to know which data and database theory that helps to show the
relationship between smaller and larger
elements each user is authorized to
components in a database or data file. It is used
access.
to give a better sense of understanding about the
5. Information Generation components of data and how they are related.

● The last step of transforming data into

information is information generation. 1) Data Attribute
- It is the process of compiling, ● The most elemental piece of
arranging and preparing data for potentially useful data in the database.
presentation to the end-user. ● It holds a single fact or attribute of an
entity.
● One must ensure that the information ● In a form you may refer to them as a
shared to the end-users is “useful data field.
information"(CARTS) - Example: Customer Account
I. Completeness: All essential Number, Customer Name,
information to complete a decision Customer Address, Customer
or task is present Balance of Account, Customer
II. Accuracy: Information is free from Credit Limit
material errors
● The collection of data attributes is
III. Relevance: Information must serve
known as the record.
the purpose of its generation
IV. Timeliness: The timeline of the
2) Record
information is aligned with its
● A record is a complete set of attributes
objectives.
for a single occurrence within an entity
V. Summarization: Information is
class or collection of related fields.
aggregated in accordance with the
- Example: Account Receivable
end-user’s needs
Records that includes the Customer
6. Information is presented to the end-users Account Number, Customer Name,
● End users are users for whom the Customer Address, Customer
system is built. Balance of Account, Customer
A. External End Users: creditors, Credit Limit
stockholders, potential investors,
3) File: A complete set of records of an - From these resources, the firm assigns a
identical class department or a group of people whose
- Example: multiple Account Receivable functions are focused on each aspect of the
Records mentioned resources

1. Materials
1.2 Organizational Structure
● Materials Management
● An organizational structure is a system ➔ Incharge of Purchasing
that outlines how certain activities are ➔ Receiving Materials as well as;
directed in order to achieve the goals of ➔ Managing the Stores
an organization ● Production
● These activities can include rules, roles ➔ Manufacturing
and responsibilities ➔ Support
The structure of an organization helps to - Production planning which
allocate: involves scheduling the flow of
➢ Responsibility materials, labor and machinery
➢ Authority to efficiently meet production
➢ Accountability needs
- Quality control which monitors
Physical AIS the manufacturing process at
● is composed of technologies of various various points to ensure that
types and configurations, as well as the finished products meet the
people and tasks from across the firm’s quality standards
organization, thus there is a need for - Maintenance which keeps the
segmentation. firm’s machinery and other
manufacturing facilities in
Segmentation running order
● to divide the organization into parts, or
● Marketing
segments, which are definable,
➔ Sales
accessible, actionable and profitable
➔ Promotion
● Segmenting by business function is a very
➔ Advertising
common method of organizing
➔ Market Research
➔ Example: a sales processing system,
- Generates revenue
which is a subsystem of the revenue
- Main tasks: to thoroughly
cycle, includes the following
understand their potential
organization functions:
customers and to determine
- Sales, Credit, Inventory control,
how they will reach them
Warehousing, Shipping, Billing,
➔ Major function: sales
Accounts Receivable, General
Ledger, Data Processing ● Distribution
Main functions are:
➔ Warehousing
Functional Segmentation
➔ Shipping
● Business Organization considers the - Ensures that a product or
resources that they need to manage within service is available for the
the business consumers or business users
who needs it
Four Resources that a business must
manage:
 2. Labor ➢ Information reliability requires
● Managed by the Personnel Group accounting independence
➔ Recruiting - Accounting activities must be
➔ Training separate and independent of
➔ Benefits the functional areas maintaining
resources
➔ Counseling
- Accounting supports these
- Supplies the organization with
functions with information but
personnel and takes care of their does not actively participate
well-being - Decision makers in these
- Ensures that each one is fit for functions require that such vital
the role they are chosen for information be supplied by an
independent source to ensure
3. Financial Capital its integrity
● Finance ● Technology
➔ Portfolio Management ➢ Enhanced the accountant’s ability
➔ Treasury to interpret data efficiently and
➔ Credit: ensures the credit worthiness effectively because of the readily
of the clients ability of data and info needed
➔ Cash Disbursement ➢ Accountant’s now has the ability to
➔ Cash Receipts interpret the language of business
- Concentrates on forecasting and with such ease that the accountant
budgeting of business revenues has become a corporation’s most
- Most business plans trusted business advisor
concentrate on this area ➢ The main role of technology in
because they need loans for business is to drive growth and
investments improve operations
➢ Its most vital task is the data
4. Information processing for external and internal
● Accounting users
➔ Inventory Control – to safeguard the I. Data Processing
asset Distributed Data Processing
➔ Cost Accounting - Recognizing the computer servicer
➔ Payroll function into small information
➔ Accounts Payable processing units that are distribute to
➔ Accounts Receivable end users and placed under their
➔ Billing control
➔ Fixed Assets - Users process transactions locally with
➔ General Ledger each user segment and an IT needs to
➢ Manages the financial resource of support their operations. Users function
the firm by: independently and tend not to share
- capturing and recording
data and information
transaction
- Distributes transaction Possible Disadvantages:
information to operations ➢ Loss of Control
personnel ➢ Mismanagement of company resources
➢ Value of information is ➢ Hardware and software incompatibility
determined by its reliability; ➢ Redundant tasks and data problems
unreliable information has NO - Data Storage
VALUE - Data Updating
- Currency of Information
 - Task-Data Dependency
- Data Integration
Centralized Data Processing
- All data processing is performed by
one or more large computers housed at
a central site that serves users
throughout the organization
- Most organization employ a resources
combination of both types
II. System Development and Maintenance
System development
- The process organizations use to
acquire information systems
System maintenance
- May be trivial or significant
- Between 80%-90% of system’s total
cost may be incurred because of
maintenance activities
Custom software
- Built to individual specifications
- Systems development life cycle is the
software development process
- Requires an in-house team of qualified
individuals and cost more expensive
than the other type
- Custom systems are more expensive
than commercial packages
- *Enterprise resource planning (ERP) is a
system assembled of prefabricated
software components
Commercial software
- Pre-coded software that a user
purchases from a software vendor
- It is available for general accounting
and industry specific application
- Sometime called turnkey systems
because they often can be
implemented by the user with little or
no modification
III. Database Administration
- Centrally organized companies with
shared data use database
administration to ensure security and
integrity
IV.Network Administration
- Responsible for effective functioning of
hardware and software
➔ Network: a collection of computers
and communication devices that allow
users to communicate, access data,
and applications, and share information
● Due to highly technical and dynamic
changing expense of IT, many
executives look towards IT
Outsourcing, where the organization
sells IT resources and leases back IT
services
Cloud computing data centers deliver
hosted IT services over the Internet:
❖ Software as a Service (SaaS)
❖ Infrastructure as a Service (IaaS)
❖ Platform as a Service (PaaS)
1.3 Role of an Accountant in an
Information System
Information System Users
● Accountants eventually accesses the
data in the company’s AIS in order to
perform their job functions
● This includes preparing and analyzing
budgets and financial statements,
preparing tax returns and examining
records for accuracy
★ SUPREME USERS
Information System Designer
● Domain experts
● Accounting function – responsible for
Conceptual System
Conceptual system
- Determines the nature of the
information required, its sources, its
destination, and accounting rules that
must be applied
● Computer function – responsible for
Physical System
Physical System
- The medium and method for
capturing and presenting the
information
Systems Auditors
● An expert who expresses an opinion about
the fairness of company’s financial
statements
● Accountants perform audits which
typically involve the AIS
➔ Internal Auditing
- An independent, objective assurance
and consulting activity designed to add
value and improve an organization’s
operations
➔ IT Auditing
- the review of the computer-based
components of an org. the audit is
often performed as part of a broader
financial audit
➔ Fraud audits
- a detailed examination of the financial
records of a business, with the intent
of finding instances of fraud.
- It had increased in popularity as a
corporate governance tool
➔ External audit
- Independent attestation and opinion
(audit report) regarding financial
statement preparation
- Requires auditors (independent CPAs)
to test internal controls and perform
substantive tests of data
- Critical element is auditor
independence
- Auditor is free from factors that might
influence the audit report
● Attest function
➢ An independent auditor’s
responsibility to opine as to the
fair presentation of a client firm’s
financial statement
● Tests of controls
- Tests that establish whether
internal controls are functioning
properly
● Substantive Tests
- Tests that determine whether
database contents fairly reflect the
organization’s transactions
SOX legislation
➔ Restricts non-audit services that auditors
may provide and prohibits them from
providing:
● Other accounting services including
bookkeeping, financial information
systems design and implementation,
appraisal or valuation, actuarial, and
internal audit outsourcing
●
● Management or human resources,
broker or dealer, investment adviser,
or investment banking services
● Legal services and expert services
unrelated to the audit
● Any other service that the Board
determines, by regulation, is
permissible
1.4 Technology for Success
Technology
★ Came from the Greek word “TECHNE”
which means art and craft.
● It was first used to describe applied
arts, but now it is used to describe the
advancement and changes around us
Computer
Can be classified into THREE Generations:
1. First Generation
● could only perform single task
● they had no operating system and
mainly used vacuum tubes
a. 1937
➢ First electronic digital computer
was built by Dr. John V.
Atanasoff-Berry and Clifford
Berry
➢ It was called the
Atanassof-Berry Computer
(ABC)
b. 1943
➢ An Electronic computer name
the Colossus was built for the
military
c. 1946
➢ The first general purpose digital
computer—Electronic Numerical
 Integrator and Computer
(ENIAC) was built; 30 tons,
18,000 vacuum tubes
2. Second Generation
● Used transistors instead of vacuum
tubes which were more reliable
● Over 100 computer programming
languages were developed, computers
had memory and operating systems
a. 1951
➢ Universal Automatic Computer
(UNIVAC 1)
➢ First computer for commercial
use was introduced to the public
b. 1953
➢ International Business Machine
(IBM)-650 and 700 series
computers made their mark in
the computer world
3. Third Generation
● Integrated circuits were invented
● Computers became smaller; more
reliable and they are able to run many
different programs at the same time
a. 1980 – Microsoft Disk Operating
System (MS-Dos)
b. 1981 – IBM introduced the personal
computer (PC) for home and office
c. 1984 – Apple gave us the Macintosh
computer with its icon driven interface
d. 1990 – Windows Operating System
Internet of Things (IoT)
● The ability of devices to communicate
with each other without human
interference
● Such functionality makes it possible to
continuously monitor, and measure
various elements through a data
network connected to the internet
Embedded Computers (sensors and
microchips)
● Installed in specific devices and from
there, the collected data are transmitted
to an application, usually via internet, that
will store, process, analyze, and share
this data in a cloud
● Compact, have limited hardware, and
usually has a single purpose of
enhancing the capabilities of everyday
devices
Artificial Intelligence
● Technological use of logic and prior
experience to simulate human
intelligence
Capabilities:
I. Speech recognition – Siri, Google
Assistant,
II. Alexa
III. Local reasoning
IV. Creative responses
V. Immersive technology
- Attempts to emulate a physical world
through the means of a digital or
simulated world by creating a
surrounding sensory feeling, thereby
creating a sense of immersion’
1. Virtual Reality (VR)
➔ Use of computers to simulate a real
or imagined environment that
appears as a three-dimensional (3D)
space
2. Augmented Reality (AR)
➔ Type of VR that uses an image of an
actual place/things, then add digital
info to it
Impact of Technology
1. Personal
➔ Artificial Intelligence
I. Games & Apps
● All “Apps” uses artificial intelligence to
process specific data on behalf of the
user
● Games incorporate virtual reality to
simulate a different environment for
the user to enjoy
II. Digital Assistants
● Uses natural language processing
which interpret and digitize spoken
words and commands
III. Accessibility Options
● Particularly useful for persons with
sensory disabilities
● It uses “AI” such as screen readers,
captioning and speech recognition, to
assist the user despite their disability
● Smartphones even allow special input
devices to be connected for such
users
2. Workplace
➔ Intelligent workplace
- Offers integrated cognitive
solutions that help companies
collaborate across borders
➔ Online collaborative productivity
software
- Allows employees to easily share
info with stakeholders without
consuming much of company’s
resources such as paper
➔ Working Remotely/Telecommuting
- Allows employees to carry out
their task even they are away
from the workplace
3. Education
➔ Intelligent Classroom
- Inevitable outcome of the
available advanced computing,
network & data communication
technology
➔ Learning Management System
- Web-based training
- Allows students to:
a. Check progress on a course
b. Take practice tests
c. Exchange messages with
involved parties
d. Take classes and earn
degrees online
4. Commerce
● E-Commerce - the buying and
selling of goods and services or the
transmitting of funds or data, over an
electronic network, primarily the
internet
➔ Business-to-business (B2B) –
consists of business providing goods
and services to other businesses (e.g.
BPO (Business Processing
Outsourcing))
➔ Business-to-consumer (B2C) –
involves the sale of goods and services
to the general public (e.g. online shops)
➔ Consumer-to-consumer (C2C) –
occurs when one consumer sells
directly to another (e.g. Facebook
marketplace)
● eBooks
- Students can read and access
content, such as videos, from
devices
● Social Networking
- Allows exchange of information
and stories between individuals
5. Transportation
➔ GPS (Global Positioning System)
● Radio navigation system that
allows land, sea, and air users to
determine to determine their exact
location, velocity and time 24
hours a day in all weather
conditions anywhere in the world
Primarily being used to:
1. navigate routes and estimate data
2. avoid unfavorable traffic
conditions
3. tracking parcels for delivery
6. Healthcare
➔ 3D printers – used to replicate body
parts used for medical studies or
substitute for real stuff
➔ Medical monitoring devices –
provides accurate and timely results to
monitor patient’s vital signs and
research symptoms and diagnosis
➔ mHealth – use of mobile and wireless
technologies to support the
achievement and health objectives
 7. Manufacturing
➔ Robotics – useful in situations where
it is impractical, dangerous, or
inconvenient to use a human
➔ Computer-aided manufacturing
(CAM) – streamlines production and
allows for shipping products more
quickly
8. Environment
● Green computing
- environmentally responsible and
eco- friendly use of computers
and their resources
- In broader terms, it is also
defined, as the study of
designing,
manufacturing/engineering, using
and disposing of computing
devices in a way that reduces
their environmental impact
Computer Hardware
● Refers to the physical, tangible computer
equipment and devices, which provide
support for major functions such as input,
processing (internal storage, computation
and control), output, secondary storage (for
data and programs), and communication
1. Processing Device
● Process raw data instruction into
information
● Central Processing Unit (CPU)
- complex integrated circuit consisting of
millions of electronic parts and is
primarily responsible for converting input
(data) into meaningful output
- Data travels in and out of the CPU
through a Bus - communication system
that transfer data and components inside
the computer or between computers
- Wire or optical fiber
2. Storage Device
● Used for data and information retention
● Computer Memory – responsible for
holding data and programs as they are
being processed by the CPU
❖ RAM (Random Access Memory) -
main memory of a computing device, it
stores data for a short period of time or
until the computing device is kept on
this type of memory is volatile
❖ ROM (Read Only Memory) –
permanently stores data on a
computing device
❖ Storage Solutions
➔ Internal Drive – Hard Disk Drive
(HDD), Solid State Drive (SSD)
➔ External Drive – External HDD,
Flash Drive, Optical Drive,
➔ Cloud Storage – it can store
electronic files on the Internet
instead of a local computer e.g.
google drive, MS OneDrive,
Dropbox
3. Input Device
● Input certain instruction or command to
a computer
● Used for raw data input
● Joystick, mouse, keyboard,
microphone, scanner, digital cameras
4. Output Device
● Disseminate data and information to the
user
● Printers and copiers, Monitors,
Headphones, Speakers, Projectors
Micro-Computer
- Small, relatively inexpensive computer
with a microprocessor as its central
processing unit (CPU)
- In common usage, the word
“microcomputer” has been largely
supplanted by the term “personal
computer” or “PC”, which specifies a
computer that has been designed to be
used by one individual at a time
a. Desktop Computer
- Consist of a system unit, monitor,
keyboard, and mouse
- More powerful, and has more storage
capability
- Hardware components can
be easily upgraded
 b. All-in-one Computer
- Monitor and system unit are housed
together, thus take up less space
- Difficult to service or upgrade
- More expensive than desktops
c. Portable/Mobile Device
- Highly portable, but usually less
powerful in specifications
- Difficult to service or upgrade
Computer Software
Software
● Program that enables a computer to
perform a specific task, as opposed to the
physical components of the system or
hardware
● It has to be “loaded” into the computer’s
storage before it can be executed
1. System Software
● A type of computer program that is
designed to run a computer’s hardware
and application programs, or provide a
platform for other software
a. Operating system – a software that
communicates with the hardware and
allows another program to run. E.g.
Windows, Android, IOS
b. Language Processor – a computer
program designed or used to perform
tasks, such as processing program code to
machine code access the interpreter of
your computer device that interprets all
computer language and relates them to
your machine
c. Utility Software – a software designed to
help analyze, configure, optimize or
maintain a computer or support its
infrastructure.; disk defragmenters, system
profilers, Network managers, application
launchers, antivirus software, backup
software, disk repair, disk cleaners, registry
cleaners, disk space analyzer, file manager,
file compression, and hardware drivers
2. Application Software
● A computer program designed to help
people perform an activity
● Depending on the activity for which it was
designed, an application can manipulate
text, numbers, audio, graphics and a
combination of these elements
a. Device Management Apps – provide
tools for maintaining a computer or
device
b. Productivity Apps – allows creation of
documents, graphics and to interact with
digital media
c. Communication Apps – allows the user
to share or receive communications or
information
d. Personal Interests Apps – provides
users with tools to pursue their personal
interest
Types of Software Classified by Task:
1. Spreadsheet Software
- Let you interact with numbers, charts,
graphics, text, and data
- It can perform calculation on data
stored in a grid of cells and recalculate
values automatically when the data
changes
● Worksheets - laid out in a grid of rows
and columns; they use letters to identify
each column and consecutive numbers
to identify row
● Cell - location formed by the intersection
of a column and a row
Key Features:
- Formatting tools to change a worksheet’s
appearance
- Ability to create a printed output of the
created spreadsheet
- Web capabilities to share workbooks
online, add hyperlinks, and save
worksheets as web pages
- Developer tools to add customized
functions
- Tools to analyze data
2. Database Software
● Phrase used to describe any software
that is designed for creating databases
and managing the information stored in
them
 - Sometimes referred to as database
management system (DBMS)
- Database software tools are
primarily used for storing, modifying,
extracting, and searching for
information within a database
- Each piece of data is entered and
stored in a field
● Tables – collection of records for a single
subject
● Query – extracts data based on specified
criteria, or conditions, for one or more
fields
● Report – user-designed layout of
database content
● Form – a screen used to enter data into a
database
Key Features:
- Ability to collect data, in a manner that
allows access, retrieval, and reporting of
that data
- Represent a query in Structured Query
Language (SQL)
- Execute database application, such as,
track inventory, maintain customer lists,
or manage employee records
Basic Computer Navigation
1. The computer receives power from the
power supply or battery and sends it to the
circuitry
2. The processor runs the bootstrap program
3. The bootstrap program executes a series of
tests to check the components
4. The computer loads the operating system
files into RAM, including the kernel
5. The computer loads the system configuration
information and loads startup programs
● Window
● Menu Dialog Boxes
● File
- Data file
- Executable File
- File Format
- File Extension
● Folder
- Library
➢ To access or initiate a computer application,
one just need to double click on the
application’s icon from the desktop window
➢ If the application is not found on the initial
desktop windows, you may click on the
windows icon (for Windows OS) or the dock
(for Mac OS)
How to Save a File
● Name the file, you must give it a name that
follows your operating system’s rules for
file-naming conventions
● Save to the computer, flash drive, or cloud.
If creating or editing a file, it should be
saved frequently. Files you work on using a
web app save changes as you make them
● Use the Save As or Save a Copy dialog
box to save a file with a new name or in a
new location
➢ Every file has properties, such as name, type,
location, and size
➢ Dates: when the file was created, modified,
last accessed
➢ The operating system assigns some
properties to files, such as type or format,
and updates other properties, such as date,
assize, and location
Manage Folder Names and Folder Placement
● You can create a new folder in a file manager
such as File Explorer or Finder
● Within file manager, you can move, copy, and
delete folders the same as a file
Functions:
➢ View frequently or recently opened files and
folders
➢ View main folders on your
computer or device
➢ Search by file name, content, date, and
more
Information Literacy
● Ability to find, evaluate, organize, use, and
communicate information in all its various
formats, most notably in situations
requiring decision making, problem solving,
or the acquisition of knowledge
● It allows users to:
- Navigate many sources of information,
including the Internet, online libraries,
and popular media sites
 - Select the right tool for finding the
information you need
- Recognize that not all information is
created equal
- Evaluate whether information is
misleading, biased, or out of date
-
➔ Credibility – identify the author and check
credentials
➔ Accuracy – verify facts and claims, check
for bias
➔ Reasonableness – examine whether the
claims are fair & sensible
➔ Support – look for reputable sources and
authorities
Content from Online Sources
● Copying photos might violate intellectual
property rights
Copyright – gives authors and artists the
legal right to sell, publish, or distribute and
original work
● Some online resources are protected by
digital rights management (DRM), which
limit access to proprietary rights
● Some material is in the public domain and
can be used without permission
● The fair use doctrine allows one to use a
sentence or paragraph of text without
permission with citation to the original
source
Creative Commons (CC) – a nonprofit
organization that helps content creators
keep copyright to their materials while
allowing others to use, copy, or distribute
their work
● Authentication
Safety and Security
Risk: the possibility something might occur that
results in an injury or a loss
1. Risk from Information
● Data and programs, comes from
attackers who want to steal information
● Online Banking, E-commerce, social
media, data mining, fake websites
Things to do to prevent:
- Give only necessary information when
completing an online form
- Review the information that online sites
such as Google, Facebook, Microsoft,
and others have stored about you
- Request to be removed from mailing lists
- Create another email account to use
when a merchant or website requires an
address
- Do not use your social media account
login information to log in to another site
- Shred paperwork that contains personal
information before discarding
- Do not carry a Social Security number in
a wallet or write it on a check
- Do not provide personal information
either over the phone or through an email
message
- Keep personal information in a secure
location in a home or apartment
- Be cautious about what information is
posted online and who can view your
information
- Keep only the last 3 months of financial
statements and shred older documents
- For paper documents that must be
retained, use a scanner to create a PDF
of the document and add a strong
password that must be entered before it
can be read
- Be cautious with a website or app
request to collect data
- Websites that request more personal
information than would normally be
expected should be avoided
➔ Use of passwords
- Use strong Passwords
- strong password: a longer
combination of letters, numbers,
symbols minimum of 15-20
characters in length
- A longer password is always more
secure than a shorter password,
regardless of complexity
- Do not use passwords that consist
of dictionary words or phonetic
words
 - Do not repeat characters or use
sequences (abc,123)
- Do not use birthdays, family
member names, pet names,
addresses, or any personal
information
- Use a password manager
● Authenticating with Biometrics
- Uses the unique characteristics of
your face, hands, or eyes to
authenticate you
- Some of the different types of
biometrics that are used today for
authentication include:
➢ Retina/Iris
➢ Fingerprint
➢ Voice
➢ Face
● Two Factor Authentication
- Uses two level of security:
passwords and codes
- After correctly entering your
password, a 4-6 digits code is sent
to your cell phone
- The code must then be entered as
the second authentication method
● Encryption
- The process of “scrambling”
information so it cannot be read
unless the user possesses the “key”
to unlock it (Decryption)
- Can apply to data-at-rest (hard
drive) or data-in-transit (Internet)
● Digital Certificate
- A technology used to verify a user’s
identity and key that has been
“signed” by a trusted third party
Identity Theft
➔ Involves using someone’s personal
information to commit financial fraud
➔ Script kitties, Hactivists, Cyberterrorists,
Nation state actors, Insiders
Protect your Online Profile
● Be cautious about what information you
post
● Be cautious about who can view your
information
Cyberbullying
➔ Bullying that takes place on technology
devices using online social media
platforms, public online forums, gaming
sites, text messaging, or email
- Considered more harmful than general
bullying
Cyberstalking
➔ Pay close attention to information about
new or updates security settings and fine-
tune profile options accordingly
2. Risk toward Environment
● Toxic electronic components of
computers and other digital devices
that are exposed when devices are
discarded
E-waste
- Contains harmful chemicals such as
cathode rays, beryllium, barium,
nickel, arsenic, lead and mercury
- When these chemicals are broken
down in landfills, they tend to leak
these hazardous materials into both
the air and soil creating an extremely
unhealthy environment
Steps to Reduce:
1. Buy Green
- When purchasing new electronic
equipment buy only products that
have been designed with
environmentally preferable attributes
2. Donate
- Donate used but still functional
equipment to school, charity, or
non- profit organization
3. Recycle
- Send equipment to a verified used
electronics recycling center
3. Risk on Health
➔ Eye strain, poor posture when using
devices, and muscle fatigue from
keyboard typing
➔ Physical health issues
● Repetitive activity
● Improper technique
● Uninterrupted intensity
Protect Computer Equipment Electrical Problems

Surge Protector
● Can defend computer equipment from spikes,
surges, and noise

Uninterruptible Power Supply (UPS)

● can be used to protect against blackouts and
brownouts

Protect Computers from Theft

● Use a cable lock
● Keep devices out of sight when in a high-risk area
● Avoid being distracted by the device and maintain
awareness of surroundings
● Hold devices with both hands
● Do not use the device on escalators or near train
doors
● Do not use white or red headphone cords
● Do not give chase if a device is stolen
● Enable device security features

Risks
● Reading wireless transmissions
● Viewing or stealing computer data
● Injecting malware
● Downloading harmful content
Precautions
● Only connect to an approved wireless network in
public
● Limit the type of activity you do on public
networks to simple web surfing or watching online
videos
● Configure routers for a high level of security

Data Backup
➔ creating data backup means copying files from a
computer’s hard drive that are then stored in a
remote location
➔ can protect against hardware malfunctions, user
error, software corruption, natural disasters, and
cyberattacks
➔ Options: online or to external hard drive
 SHORT ASSESSMENT

1. Which statement describes a business resource?

a. It is not essential to the survival of the contemporary business organization.
b. It does not need to be appropriately managed.
c. Raw materials, capital and information are examples of a business resource.
d. None of the above.

2. The following are parts of the subsystem of the Accounting Information System, except?
a. Management Reporting System
b. Transaction Processing System
c. Enterprise Resource Planning System
d. General Ledger/Financial Reporting System

3. Which is an example of a nonfinancial transaction?

a. Payment of loans
b. Logging of customer calls
c. Purchase of raw materials
d. Sale of products

4. Which statement best describes the Management Information System?

a. Supports the four functional areas of business accounting and finance, sales,
marketing, manufacturing, distribution, and human resources.
b. Processes financial transactions, not normally processed by the traditional
accounting information system
c. Identifies, collects, processes, communicate economic information about a firm
d. Distributes transaction information to operations personnel to coordinate many key
tasks

5. All of the following cycles are included in the Transaction Processing System except?
a. Revenue Cycle
b. Expenditure Cycle
c. Administrative Cycle
d. Conversion Cycle

6. Portfolio management and Cash disbursement are part of which business function?
a. Distribution
b. Finance
c. Accounting
d. Materials Management
7. Which of the following is not part of the production function?
a. Capturing and recording transactions in the database.
b. Monitors the manufacturing process at various points to ensure that the finished products
meet the firm’s quality standards
c. Schedules the flow of materials, labor and machinery to efficiently meet production needs.
d. Keeps the maintenance of the firm’s machinery and other manufacturing facilities in running
order.

8. Which is not part of the Marketing Function?

a. Sales
b. Advertising
c. Market Research
d. Managing the Stores

9. Which is not true regarding accounting independence?

a. Separation of duties, such as record keeping and custody of physical resources.
b. Generation of timely and accurate information.
c. Accounting supports these functions with information but does not actively participate in
the physical activities.
d. All statements are correct.

10. Which audit function provides independent attestation and opinion regarding financial statement
preparation?
a. Fraud auditing
b. Internal Auditing
c. External Auditing
d. IT Auditing

11. It involves the sale of goods and services to the general public such as online shops.
a. Consumer-to-consumer
b. Business-to-consumer
c. Business-to-business
d. None of the above

12. The impact of technology on healthcare has led to the use of the following except?
a. mHealth
b. Robotics
c. 3D printers
d. Medical monitoring devices
13. It is a device that processes raw data instruction into information.
a. Output device
b. Storage device
c. Storage device
d. Processing Device

14. Roger wants to store his data where he could access it remotely, which storage solution should he
use?
a. External drive
b. Cloud storage
c. Internal drive
d. All of the above

15. Marian needs to upload her vaccination card to the ThOMedSS website to update her vaccination
records, what device could she use to efficiently perform the task?
a. Scanner
b. Digital camera
c. Webcamera
d. All can be used to perform the task

16. All data processing is performed by one or more large computers housed at a central site that
serves users throughout the organization.
a. Centralized Data Processing
b. Distributed Data Processing
c. Decentralized Data Processing
d. None of the above

17. The following are possible disadvantages of Distributed Data Processing except?
a. Redundant tasks and data problems
b. Loss of control
c. Hardware and software incompatibility
d. None of the above

18. A program that starts and runs the computer.

a. Application Software
b. System Software
c. Database Software
d. Spreadsheet Software
19. Bruno receives an email that someone attempted to log in to his account. He was advised to
change his password. In creating a new password, Bruno must avoid all of the following except?
a. Using personal information
b. Using dictionary words
c. Using sequences (abc, 123)
d. Using a long combination of letters, numbers and symbols

20. It uses two levels of security using passwords and codes.

a. Encryption
b. Authenticating with Biometrics
c. Two Factor Authentication
d. Digital Certificate
 ANSWER KEY:

1. C 6. B 11. B 16. A

2. C 7. A 12. B 17. D

3. B 8. D 13. D 18. B

4. A 9. B 14. B 19. D

5. C 10. C 15. A 20. C

References:

Hall, J.A. (2010). Accounting Information Systems Seventh Edition. Cengage Learning.