Audit

Chapter 2

Information Technology and AISs

INTRODUCTION

CASE ANALYSES

THE IMPORTANCE OF INFORMATION

TECHNOLOGY TO ACCOUNTANTS

Savage Motors

Six Reasons

Bennet National Bank

The Top Ten Information Technologies

Prado Roberts Manufacturing

INPUT, PROCESSING, AND OUTPUT DEVICES

Input Devices

REFERENCES AND RECOMMENDED

READINGS

Central Processing Units

ANSWERS TO TEST YOURSELF

Backwater University

Output Devices

SECONDARY STORAGE DEVICES

Magnetic (Hard) Disks

CD-ROMs and DVDs

Flash Memory

Image Processing and Record Management Systems

DATA COMMUNICATIONS AND NETWORKS

Communication Channels and Protocols

Local and Wide Area Networks

Client/Server Computing

Wireless Data Communications

Cloud Computing

COMPUTER SOFTWARE

Operating Systems

Application Software

Programming Languages

AIS AT WORK—DELIVERING PACKAGES IS

HIGH-TECH AT UPS

SUMMARY

After reading this chapter, you will:

1. Be able to describe why information technology

is important to accounting information systems,

and why accountants should know about this

technology.

2. Understand why computer processor speeds

are not particularly important to most accounting information systems.

3. Be familiar with source documents and why

they are important to AISs.

4. Know some common AIS uses for POS input,

MICR media, and OCR.

5. Be able to explain in general terms the value of

secondary storage devices to AISs.

6. Understand why data communications are

important to AISs.

7. Be able to describe some advantages of client/

server computing.

8. Be able to explain the advantages and disadvantages of cloud computing.

KEY TERMS YOU SHOULD KNOW

TEST YOURSELF

DISCUSSION QUESTIONS

PROBLEMS

35

36

PART ONE / An Introduction to Accounting Information Systems

Business does not operate independently of technology. It never did . . . Business analysis

cannot operate without considering the impact of technology. It never could . ....