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Lecture 2- Information systems and the role and development of information systems and technology in accounting
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1Financial accounting- Provides information to [blank_start]external[blank_end] users, typically in the form of [blank_start]summarised financial reports[blank_end] such as the income statement and statement of financial position. The information is based on [blank_start]historical data[blank_end]; a highly regulated branch of accounting.
- Aexternal
- Bsummarised financial reports
- Chistorical data
2Management accounting- Concerned with the [blank_start]provision[blank_end] of [blank_start]information[blank_end] to [blank_start]managers[blank_end] to help them make [blank_start]business decisions[blank_end]; management accounting aims to provide more [blank_start]detailed[blank_end] and timely information to [blank_start]internal[blank_end] users of accounting information.
- Aprovision
- Binformation
- Cmanagers
- Dbusiness decisions
- Edetailed
- Finternal
3One typical user of accounting information is [blank_start]managers[blank_end]. They require accounting information to [blank_start]assist[blank_end] them in [blank_start]decision-making[blank_end]
- Amanagers
- Bassist
- Cdecision-making
4Another typical user of accounting information is [blank_start]investors (shareholders)[blank_end]. They require accounting information on the [blank_start]value[blank_end] of the [blank_start]investment[blank_end] they have made
- Ainvestors (shareholders)
- Bvalue
- Cinvestment
5Third typical user of accounting information is [blank_start]employees[blank_end]. They require accounting information on the [blank_start]ability[blank_end] of an [blank_start]organisation[blank_end] to meet their [blank_start]wage/salary[blank_end] expectations
- Aemployees
- Bability
- Corganisation
- Dwage/salary
6Fourth typical user of accounting information is [blank_start]suppliers[blank_end]. They require accounting information to allow them to [blank_start]assess[blank_end] the [blank_start]likelihood[blank_end] of being [blank_start]repaid[blank_end]
- Asuppliers
- Bassess
- Clikelihood
- Drepaid
7Fifth typical user of accounting information is [blank_start]customers[blank_end]. They require accounting information to [blank_start]assess[blank_end] the ability of an [blank_start]organisation[blank_end] to continue [blank_start]supplying products/services[blank_end]
- Aassess
- Borganisation
- Csupplying products/services
- Dcustomers
8Sixth typical user of accounting information is [blank_start]government & regulatory agencies[blank_end]. They require accounting information to help [blank_start]manage[blank_end] the [blank_start]economy[blank_end], collect taxes, etc
- Agovernment & regulatory agencies
- Bmanage
- Ceconomy
9One feature of enterprise systems is that it is a [blank_start]standard software package[blank_end], offering a level of [blank_start]customisation[blank_end] to enable [blank_start]configuration[blank_end] for most business types
- Astandard software package
- Bcustomisation
- Cconfiguration
10Another feature of enterprise systems is that it [blank_start]offers[blank_end] a [blank_start]high[blank_end] level of [blank_start]functionality[blank_end] following a [blank_start]process-oriented[blank_end] view of [blank_start]enterprises[blank_end]
- Aoffers
- Bhigh
- Cfunctionality
- Dprocess-oriented
- Eenterprises
11Third feature of enterprise systems is that it [blank_start]provides[blank_end] a [blank_start]standardised[blank_end] graphical [blank_start]user interface[blank_end] across all [blank_start]application[blank_end] areas & modules, thereby allowing the user to easily work & [blank_start]learn[blank_end] across modules
- Aprovides
- Bstandardised
- Cuser interface
- Dapplication
- Elearn
12One way how developments in accounting information [blank_start]systems[blank_end] has affected the roles of [blank_start]accountants[blank_end] in business is that [blank_start]less[blank_end] of the [blank_start]mundane bookkeeping[blank_end]/reporting type of work is done, as [blank_start]software[blank_end] can manage a lot of this work
- Asystems
- Baccountants
- Cless
- Dmundane bookkeeping
- Esoftware
13Information system- Collection of [blank_start]computer hardware[blank_end] & software that can provide [blank_start]decision-making[blank_end], control or other similar [blank_start]information[blank_end] based on underlying [blank_start]data[blank_end]. [blank_start]People/ humans[blank_end] too are an [blank_start]essential[blank_end] part of an information system
- Acomputer hardware
- Bdecision-making
- Cinformation
- Ddata
- EPeople/ humans
- Fessential
14To understand information systems fully, need to be [blank_start]aware[blank_end] of [blank_start]broader organisation[blank_end], [blank_start]people[blank_end] & [blank_start]information technology[blank_end] dimensions & their role in providing [blank_start]solutions[blank_end] to solutions & [blank_start]challenges[blank_end] within business
- Aaware
- Bbroader organisation
- Cpeople
- Dinformation technology
- Esolutions
- Fchallenges
15Logical security- Use of [blank_start]software[blank_end] to protect [blank_start]information[blank_end] & [blank_start]data[blank_end]. Basic form of logical security is having [blank_start]user level[blank_end] access controls ([blank_start]passwords[blank_end] & permissions)
- Asoftware
- Binformation
- Cdata
- Duser level
- Epasswords
16Organisations use certain [blank_start]technologies[blank_end] to reduce [blank_start]logical security[blank_end] risks such as [blank_start]firewalls[blank_end]. [blank_start]Firewalls[blank_end] are combination of [blank_start]hardware[blank_end] & [blank_start]software[blank_end] to prevent network [blank_start]access[blank_end]
- Atechnologies
- Blogical security
- Cfirewalls
- DFirewalls
- Ehardware
- Fsoftware
- Gaccess
17[blank_start]Data encryption[blank_end] is another logical security. It is use of [blank_start]crypto graphic techniques[blank_end] to [blank_start]encrypt[blank_end] data & transform human [blank_start]readable[blank_end] information into [blank_start]unreadable[blank_end] form
- AData encryption
- Bcrypto graphic techniques
- Cencrypt
- Dreadable
- Eunreadable
18Physical security - [blank_start]Physical measures[blank_end] to prevent [blank_start]access[blank_end] to data & or information systems. Basic form is considering how people [blank_start]access buildings[blank_end], computers, [blank_start]database servers[blank_end] are being kept
- APhysical measures
- Baccess
- Caccess buildings
- Ddatabase servers
19If organisation has sensitive data, they might use other approaches such as [blank_start]motion sensors[blank_end] or [blank_start]biometric[blank_end] type of authentication for [blank_start]accessing[blank_end] some of their [blank_start]facilities[blank_end]
- Amotion sensors
- Bbiometric
- Caccessing
- Dfacilities
20Two common principles of data protection is an [blank_start]organisation[blank_end] must [blank_start]obtain[blank_end] & [blank_start]process[blank_end] data [blank_start]fairly[blank_end] & data must be [blank_start]obtained[blank_end] for one or more [blank_start]specified[blank_end] & [blank_start]lawful[blank_end] purposes
- Aorganisation
- Bobtain
- Cprocess
- Dfairly
- Eobtained
- Fspecified
- Glawful
21Another two common principles of data protection is [blank_start]data[blank_end] must be processed in ways [blank_start]compatible[blank_end] with purposes for which it was [blank_start]obtained[blank_end] & [blank_start]data[blank_end] must be kept [blank_start]safe[blank_end], secure, [blank_start]accurate[blank_end] & up-to-date
- Adata
- Bcompatible
- Cobtained
- Ddata
- Esafe
- Faccurate
22Final three common principles of data protection is any [blank_start]data[blank_end] obtained must be [blank_start]adequate[blank_end], relevant & not [blank_start]excessive[blank_end], [blank_start]data[blank_end] should not be retained for [blank_start]longer than[blank_end] necessary &
if any individual [blank_start]request[blank_end] information on data held on them, this [blank_start]information[blank_end] must be given- Adata
- Badequate
- Cexcessive
- Ddata
- Elonger than
- Frequest
- Ginformation
23Business continuity planning (or disaster recovery planning)- [blank_start]Refers[blank_end] to [blank_start]policies[blank_end] & [blank_start]procedures[blank_end] to reinstate [blank_start]normal business[blank_end] in event of business [blank_start]disruption[blank_end]
- ARefers
- Bpolicies
- Cprocedures
- Dnormal business
- Edisruption
24Level of business continuity planning for information systems depends on [blank_start]type of business[blank_end]
- Atype of business
25Purchased business continuity planning solution is [blank_start]typical[blank_end] & [blank_start]good[blank_end] practice for [blank_start]larger organisations[blank_end] & essential for [blank_start]online business[blank_end]
- Atypical
- Bgood
- Clarger organisations
- Donline business
26Key tasks of accounting are [blank_start]capturing information[blank_end], [blank_start]measuring[blank_end] it & [blank_start]communicating[blank_end] it
- Acapturing information
- Bmeasuring
- Ccommunicating
27Developments in [blank_start]software architecture[blank_end] have allowed [blank_start]accounting information systems[blank_end] to become more [blank_start]flexible[blank_end] over time
- Asoftware architecture
- Baccounting information systems
- Cflexible
28Three tier architecture includes [blank_start]presentation layer[blank_end] (what [blank_start]user[blank_end] sees in system & [blank_start]interact[blank_end] with it), [blank_start]business logic layer[blank_end] ([blank_start]encodes[blank_end] how business works) & [blank_start]data layer[blank_end] (how data is [blank_start]stored[blank_end], organised, processed & [blank_start]accessed[blank_end])
- Apresentation layer
- Buser
- Cinteract
- Dbusiness logic layer
- Eencodes
- Fdata layer
- Gstored
- Haccessed
29SAP R1(software architecture) had all [blank_start]three layers[blank_end] (presentation, business logic & data) contained in [blank_start]single system[blank_end] which made [blank_start]customisation[blank_end] difficult
- Athree layers
- Bsingle system
- Ccustomisation
30SAP R2 (software architecture) had [blank_start]presentation layer[blank_end] separated, as [blank_start]software[blank_end] (data & business logic layers) were designed to [blank_start]run[blank_end] on mainframe computer, with [blank_start]user[blank_end] interacting through [blank_start]dumb terminal[blank_end] (presentation) layer. Little [blank_start]customisation[blank_end] at [blank_start]presentation[blank_end] layer, but at least [blank_start]data[blank_end] & [blank_start]business logic layers[blank_end] could be worked on independently
- Apresentation layer
- Bsoftware
- Crun
- Duser
- Edumb terminal
- Fcustomisation
- Gpresentation
- Hdata
- Ibusiness logic layers
31SAP R3 (software architecture) [blank_start]split[blank_end] SAP architecture into [blank_start]three[blank_end] distinct [blank_start]layers[blank_end] in client server
environment. [blank_start]Presentation[blank_end] layer was on personal computer & could be [blank_start]customised[blank_end] by users without any [blank_start]effect[blank_end] on underlying [blank_start]business logic[blank_end] or [blank_start]data layers[blank_end]. Business logic & data layers reside on separate servers- Asplit
- Bthree
- Clayers
- DPresentation
- Ecustomised
- Feffect
- Gbusiness logic
- Hdata layers
32QuickBooks has [blank_start]one-tier[blank_end] architecture but it [blank_start]mimics two-tier[blank_end] architecture. User can [blank_start]customise[blank_end] what they do ([blank_start]presentation[blank_end] layer) without [blank_start]interfering[blank_end] with underlying [blank_start]business logic[blank_end] or [blank_start]data[blank_end] layer
- Aone-tier
- Bmimics two-tier
- Ccustomise
- Dpresentation
- Einterfering
- Fbusiness logic
- Gdata
33 Ways how developments in accounting information systems has affected roles of accountants in smaller businesses is practises of [blank_start]bookkeeping[blank_end] & [blank_start]tax returns[blank_end] have been [blank_start]automated[blank_end] using accounting software & use of [blank_start]cloud-based software[blank_end] has offered more [blank_start]flexibility[blank_end]
- Abookkeeping
- Btax returns
- Cautomated
- Dcloud-based software
- Eflexibility
34Ways how developments in accounting information systems has affected roles of accountants in larger businesses is role of [blank_start]management[blank_end] accountants become more [blank_start]analytical[blank_end], [blank_start]devolved accounting[blank_end] responsibility & more [blank_start]standardised[blank_end] accounting processes
- Amanagement
- Banalytical
- Cdevolved accounting
- Dstandardised
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