Cover page

MIDLANDS STATE UNIVERSITY

P. BAG 9055 Gweru, Zimbabwe
Telephone: (263) 254 260404/260337/260667/260450
Fax: (263) 254 260233/260311
Fax: (263) 254 260233/260311

NAME OF FACULTY …………………….FACULTY OF BUSINESS SCIENCES

NAME of Department____________ACCOUNTING SCIENCES

Module code and narration …………….ACC 142 ACCOUNTING SYSTEMS IN A COMPUTER

ENVIRONMENT

Level and semester ………………………..1 SEMESTER 1

Study hours or credits/ approximate completion time………………………36 HRS

Name of Lecturer ………………………………….TAKACHICHA M. T

Contact details of lecturer ……… +263 717 884 906/ takachichamt@[Link]

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MIDLANDS STATE UNIVERSITY
FACULTY OF BUSINESS SCIENCES
DEPARTMENT OF ACCOUNTING SCIENCES

MODULE OUTLINE: ACCOUNTING SYSTEMS IN A COMPUTER

ENVIRONMENT (ACC 142)

MODULE AIM
This module aims to introduce students to the contemporary issues in information system
technology together with a theoretical and practical understanding of information systems in
support of the accountant. This module aims to expose students to the information technology
environment. Students will acquire the fundamental principles of information systems as a user
and manager.
MODULE OBJECTIVES
By the end of the study, candidates should have mastery of the following areas and must be
able to:
a) Explain the primary information flows within the business environment and discuss the
fundamental objectives of all information systems
b) Discuss the relationship between traditional information systems and computer-based
systems
c) Understand business tasks in transaction cycles and show how different technologies
influence changes in business operations.
d) Understand the concert of doing business via the internet
e) Explain the concepts of evolving computer technologies such as, Artificial intelligence
and Block Chain Technology

MODULE ASSESSMENT

Coursework being assignments and inclass tests constituting 30% of the final exam mark. The
final examination constitutes 70% of the final exam mark. The exam will be made up of theory
questions which will test knowledge and application.

(a) MODULE CONTENT

A. The Information Environment

1. Information defined
1.1 Basic flow of Information
1.2 The value of information
2. Understanding a system

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 2.1 Multiple components and Relatedness
2.2 General system theory -Subsystem and purpose
3. A frame work for Information system
3.1 The accounting information system
3.2 The management information system
4. The evolution of Information system models
4.1 The manual model
4.2 The flat file mode
4.3 The database model
4.4 The resources, events and agents (REA) model
4.5 Enterprise Resources Planning (ERP) System
5. The role of the accountant
5.1 Accountants as users
5.2 Accountants as system designers
5.3 Accountants as auditors

B. Introduction to Transaction Processing

1. An overview of Transaction Processing systems (TPS)
1.1 The expenditure and revenue cycle
1.2 Documents under the manual system
1.3 Computer based systems
2. Documentation techniques
2.1 Data flow diagram (DFD)
2.2 Flow charts
3. Computer based accounting system
3.1 Differences between batch and real time systems

C. Transaction Cycles
1. The revenue cycle
1.1 Control issues surrounding revenue cycle
1.2 Computer based accounting systems
2. The expenditure cycle
2.1 Computer based purchasing and cash disbursement applications
2.2 Payroll processing and non-current asset procedures
3. The non-current asset system

D. Business communication in a computer environment

1. Traditional versus digital communication
1.1 The use of IT in business
1.2 Benefits and demerits of traditional and digital communication methods
1.3 How technology is changing the way businesses communicate (artificial
intelligence and drone technology)
1.4 Impact of the internet on business communication (the intranet, extranet and
internet)
1.5 Electronic emailing
1.6 Virtual teams and organisations implications to effective communication

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E. The digital age and implications on accountants
1. Big Data and Data Analytics
1.1 Block chain technology
1.2 Cloud technology
1.3 Mobile phone technology and websites
1.4 Social media and how accountants use social media for business
1.5 Cyber security

F. Ethics Fraud and Internal Control

1. Understanding ethics and computer fraud
2. Common crimes in accounting information system technology
2.1 Data collection, data processing and database management
2.2 Information generation
3. Internal Control Environment and Procedures
3.1 The control environment
3.2 Types of controls (preventive, detective and corrective)
3.3 System vulnerability
3.4 Internet vulnerability
3.5 Malicious software, viruses, worms, trojan horses and spyware
4. Importance of system control
4.1 Control against malicious and destructive programmes

(b) RECOMMENDED TEXTBOOKS

1. Hall James A Accounting Information Systems

2. Laudon K.C and Laudon J.P Management Information System
3. Bodnar and Hopwood, Accounting Information Systems
4. Holjander, Denna, Cherrington Accounting Information Technology and Business
Solutions
5. O’Brien J, Management Information Systems
6. Bovee and Thil, Excellence in business Communication

(c) Assignment topics/ inlass tests, length and due dates.

To be advised as module progresses

(d) Webinar dates/Google classroom meetings and times

As guided by Department timetable

(e) Methods of communication with the lecturer:

Communication between lecturer and students will be done strictly on e-learning,
WhatsApp (only on contact provided above) Google Classroom, emails, phone calls
(only on contact provided above between 8am and 5pm during week days ONLY)

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THE MODULE STUDY GUIDE

THE INFORMATION ENVIRONMENT

Learning objectives

By the end of the Chapter, candidates should have mastery of the following areas and must be
able to:
• To understand what is referred to as information
• To appreciate the various components of systems
• To understand the evolution of Information system models
• To appreciate the role of the accountant

Information and its complexity

For any business to survive, it needs an objective that it strives to achieve. The manager of a
business must plan, organize, direct and control the activities of an organization so that the set
objective is met. In order to perform these functions they need to be making decisions
continuously. To make decisions managers need information to help them to make informed
choices.
Basically a computer is a device that has the ability to accept data, internally store and execute
a program of instructions, perform mathematical, logical and manipulative operations on the
data and internally store the data or the result from the earlier described processes and reports
on the results.
Data and Information
Data is raw facts or unprocessed information; computers manipulate data according to the
instructions contained in the software to produce information. Activities that are captured into
an information system are known as data.
-Data that has been processed is available as information and must be used by someone
-Information is created through a process of recording, capturing and processing data and
activities, then communicating it to the users to increase their knowledge to enable them to
make decision.
-Processing data involves doing calculations on the activities and summarizing the activities,
classifying the activities according to certain attributes, sorting the activities etc.
Information is only useful if it has been communicated to a decision maker or user in a correct
understandable format. It may be in a report format.
The effectiveness of data to information conversion is influenced by:
• Presentation
• Quality of source data

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 • Effectiveness of processing activity
• Quality of communications
• Interface
• Timeliness

The characteristics of Information

(i) Purpose

There must be a reason or purpose why the information is produced and this is what gives
it value.
(ii) Identifiable
It must be clear as to who needs the information
(iii) Channels of Communication
The path or medium by which information is transmitted is known as the
communication channel (e.g. written report, graphs, telephone conversations,
meetings, informal discussions, electronic transfers using computers etc,
information must be communicated to a specific user using the user’s
specific/required/preferred channel
Quality of Information
Information systems can be evaluated by analyzing the quality of information produced by the
system. Good information is that which has value to the user, can be relied upon by the user
and helps in the decision making process. Good quality information has the following
characteristics.
(i) Accuracy
Is information communicated correctly processed and all the activities correctly
recorded and captured.
(ii) Relevance
Information that is not needed for a decision should be omitted no matter how
interesting it may be
(iii) Up to date
Must be current and representative of the current situation
(iv) Completeness
Must include everything that it ought to as to enable managers to make informed
decisions
(v) Timeliness
Should be available at the time when it is required by the decision maker.
(vi) Well-presented
Must be in an understandable format to the specific manager.
(vii) Effective communication
Must be communicated to the appropriate person by using a channel of
communication to most effectively communicate the information to that specific
person
(viii) Cost effectiveness

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 Should only be produced if or when the benefits of this information exceed the cost
of producing it
(ix) Authoritative
Source of the information should be reliable
CATEGORIES OF INFORMATION
(a) Past Information –Past events that have occurred within organization
(b) Present Information-is about what is happening now
(c) Future Information- is about what is expected to happen in the future, is associated with
planning
- The qualities of these different categories of information will also differ for e. past
information should be very accurate whereas with future information, accuracy plays a
less important role.

An introduction to system theory

A system can be defined as a group of inter related and inter connected components that depend
on each other to fulfill their individual mandate and by so doing fulfill the mandate of the
whole. Generally a system consists of two (or more) components (also called subsystems) that
combine to achieve a common goal. Basically we are saying that
-A system must have an objective or goal
-Systems are divided into subsystems, each having its own goal or objective
-All systems must be controlled to keep the system steady or to enable it to change safely.
There are basic elements of a system and these are inputs, process, output and environments.
Other features are boundaries (scope of systems), interfaces (facilitate the exchange of
resources between sub-systems), communications and delays. Another element of a system is
feedback, which is the information produced by the system concerning its performance. In
other words feedback is the return of part of the output of a system with the aim of measuring
the correctness of the system and the modification of subsequent action to reach the set
objectives. So a user of the system will use feedback information to control the system. Most
system has input processes and an output these are separated from the environment by a
boundary.

There are several types of systems and will mention a few which are:
Natural or man-made system, adaptive or non-adaptive system, controlled or non-controlled,
open or closed systems
-A closed system is a system that is isolated from the environment in which it operates (it
neither affects it nor is it affected by it). For a closed system there is no input or output but
processing is there
-An open system is a system connected to and interacting with its environment, meaning that
it can be influenced by, and can influence, the environment in which it operates. All business
systems are open systems.

SOCIAL ENVIRONMENT

SOCIAL TRENDS ECONOMY Page 7 of 31

MARKET FORCE WORKFORCES

NEW LEGISLATION OTHER FORCES

 Business
organization
(system)

Business organisation (system)

Business organizations are controlled as a cybernetic system, whereby cybernetics is the theory
of communication and control based on regulatory feedback.
Cybernatic control has three levels:
(i) Target- setting level
Where targets are set in response to environment
(ii) Control level
Which monitors the output and compares it with the targets as established at the
target-setting level
(iii) Operational level
Where input is converted into output
A closed loop system
Is where one part of system is the output and becomes input into the next system, hence
feedback into the system for control purposes
A sensor
Is a device by which information is collected and measured to produce the input.
A comparator
Is the means by which the actual results (or output) of the system are measured against the
predetermined objectives of the systems
An effector
Is the device (or means) by which control action is effected/initiated

COMPUTERISED INFORMTION SYSTEMS IN CONTEXT

COMPUTERISED INFORMATION SYSTEMS
This entails the processing of data by using a computer system that produces information.
It consists of different components (or sub-systems)
- Activities
- Data (input)
- Processing and storage(in the computer)

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 - Information(output)
- Decision makers(people)
- Feedback and control(monitors environmental responses to output as well as record
quality, effectiveness and efficiency of input and processing stages in the system)
- Environment

COMPUTERS SYSTEM
• Is the instrument that processes data information
• Entails three separate entities, hardware, software and networks.

Example of the simplest form of a computer system

IMPACT OF COMPUTERISED INFORMATION SYSTEMS
Most businesses today have moved away from processing transactions manually by hands and
are now using computers. Here under are some of the reasons why businesses are using
computerized information systems rather than systems operated by hand. i.e manual systems
• The high speed at which computer system can process transactions and produce
accurate information in a timely fashion,
• The large volume of transactions that can be processed accurately by the computer
system in a very short space of time.
• The high accuracy at which the computer system processes transacting information
• The improved quality of information produced by the computer system
• The effective communication, in an electronic format to users anywhere in the world
• The lower cost of processing transaction with a computer system
• The high complexity of calculation that can be performed faultlessly by a computer
system

Computers in Context
- When using an ATM
- When using a P.O.S in a shop
- When using a microwave at home
- When using a cell phone

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 Class Discussion
Why should accountants and auditors have knowledge of computer systems? (25
marks)

1. Hardware

The hardware concept

This comprises all the physical equipment of the information system, both mechanical and
electronic.
It includes: -CPU
- Input devices
- Output devices
- Storage devices
- Memory
- Telecommunication devices

Central Processing Unit (CPU)

The heart is the CPU, Data is read into the CPU where it is processed into information that is
communicated to the user. Its functions include:
➢ To carry out processing
➢ To give commands to all parts of the computer
➢ To control the sequence of operations
➢ To control the use of main memory to store data and instructions

How the CPU Functions

- The CPU only processes data into information if it is provided with a list of instruction
(program instructions) telling it exactly how to process the data.
- These instructions are read into the computer and stored in primary memory.
- The CPU then takes the program instructions and executes them one by one.

Step 1: Read the Program Instructions Memory

Step 2: Analyse the instruction and, if necessary, retrieve the values of all the variables used in
the instruction from primary memory
These first two steps are the instruction phase
Step 3: Executive the calculation as required by the program instructions(this is done by the
ALU)
Step 4: Share the result of the calculation

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The result of calculation performed by the ALU is stored in primary memory in the variable
determined by the program instruction
These 2 steps (3 & 4) are called the execution phase
The process time taken to complete the above mentioned four steps is known as the machine
cycle or CPU cycle

The CPU is made up of 3 components

• Primary memory- where the data is stored
• The control unit
• The arithmetic logic unit

The control unit and its function

It controls and co-ordinates all hardware operations i.e. those of peripheral units, main memory
and the processor itself.
• Controls and regulates all the functions of the CPU
• Interprets program instructions
• Controls all input and output operations and;
• Controls the movement of data to and from memory and the processing unit.

Basically its main responsibility is to receive information, instructions, decode instructions and
communicate the information to another component and advice it how best to execute the given
instruction
It is installed on the motherboard of a computer. A motherboard is the main circuitry body of
a micro-computer that contains not only the CPU and memory but also the interfaces, ports and
controllers that connect and control the standard peripheral devices.
Arithmetic-Logic Units (Processing Unit)
Carries out all the arithmetic calculations (+;-;x;/) and performs logic calculations
(<;>;=;≤;≥;≠)
Primary Memory
Serves as a storage space for full program instructions that have to be executed by the CPU. It
also stores the value of variables(data) that are being used by the program instruction. Before
the user can use any software to process information, the program instructions of that software
must be loaded and stored in the primary memory.
TYPES OF PRIMARY MEMORY
• RAM
• ROM
• Cache memory

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RAM- Random Access Memory
- Programs, data and instructions are stored temporarily in the internal RAM.
- Most common type of RAM is a semi-conductor
- Major disadvantage of RAM is that all information is erased if the electric current to
primary memory is cut-off(for instance in a power outage)

RAM chip

READ ONLY MEMORY

Information is stored inside ROM can be read only by the computer. User cannot store any
information on the ROM.
It is mainly used to store instructions that are used frequently by the computer (for example the
boot program)
-Data stored in this type of memory is non-volatile and is either unchangeable (or permanent)
or requires a special operation to change

ROM chip
Other types of ROM are:
(i) Programmable Read Only Memory (PROM) they can be programmed once and are
generally referred to as WORM i.e. write once read many times e.g. CD ROM
(ii) Erasable programmable Read Only memory(EPROM) one can write on it and later
on erase its contents many times e.g. CD RW
(iii) Electrically Erasable Programmable Read Only Memory EEPROM e.g Flash
memory. It is a type of EEPROM that uses in circuit wiring to erase data by applying
an electrical field to the entire chip or to predetermined sections of the chip called
blocks. It works faster than traditional EEPROMs because it writes data in blocks
instead of 1 byte at a time

CACHE MEMORY
-This is a small memory bank that is intergrated with the processor. It is a special kind of
memory which can be used as a spare to store data.
-Cache memory is about twice as fast as primary memory and frequently used instruction
and data are stored in it.
-If these instructions and data are accessed, they are retrieved from the cache memory
instead of the primary memory

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 Measuring the Capacity of Memory
-is measured by adding the number of bits that can be stored as data in memory at any one
time

Capacity is measured in kilobytes

1 kilobyte =1024 bytes
1 megabyte =1024 kilobytes
1 gigabyte =1024 megabytes
1 terabyte =1024 gigabytes
An introduction to Peripheral devices
This refers to the physical components of a computer both mechanical and electronic and
these may be classified as follows:
• Input devices
• Processing devices
• Storage devices
• Output devices

INPUT DEVICES
They facilitate communication between the user and the computer. Input devices accept data
and instructions from another computer system
-keyboard -optical character reader (OCR)
-mouse -Optical mark reader(OMRs)
-ligt pen -magnetic ink character reader(MICR)
-Touch screen -Page scanners
-bar code readers -point of sale (POS)/Electronic Point of sale (EPOS)
-voice data entry(VDE) -Video input etc
A magnetic-ink character reader for example is a scanning technology that reads magnetized
ink characters printed at the bottom of cheques and converts them to digital form. MICR
technology is used by banks to sort cheques.
When selecting a data collection method i.e Input Device and method one should consider
(a) Costs of the system – there must be kept low
(b) Accuracy- should have detection and correction procedures for errors
(c) Time – turnaround time in capturing data should be short
(d) Reliability – the system of capture should be free from breakdown
(e) Flexibility – the system cater for different types of data

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 (f) Volume – a system should suit the nature od data to be captured
(g) Existing Equipment – a system that uses existing equipment would be most preferred
(h) User friendliness- a system should render itself to ease of use

Output Devices
-there are two types of output devices
• Those that produce hard copy (permanent)
• Those that produce soft copy

Printers are hard copy produces while the VDU is a soft copy device
Types of Printers
Printers can be classified in a number of ways
1) By print operation- character printers e.g dot matrix, daisy wheel, ink- jet printers
-line printers e.g drum chain/ train printers
-page printers e.g laser, magnetic printers
Ink-jet printers for example are printers that spray onto paper small electrically charged
droplets of ink from four nozzles through holes in a matrix at a high speed. Like laser
and dot- matrix printers, ink-jet printers form images with litte dots. Because they
produce high quality images on special paper, ink-jet printers are often used in graphic
design and desk top publishing. However ink-jet printers are slower than laser printers
and prin at a lower resolution on regular paper
2) By method of producing print
-Impact printers e.g daisy wheel, drum chain, dot matrix printers
-non-impact printers e.g laser, magnetic, ink-jet printers
Impact printers for example are printers that form characters or images by striking a mechanism
such as a print hammer or wheel against an ink ribbon, leaving an image on paper. Nonimpact
printers are more commonly used than impact printers, but dot matrix printers are still in use
in some businesses.
3) By speed of printing
-low speed printers 10copies to 300p/m e.g dot matrix, ink jet
-high speed printers over 300p/m e. laser.

an example of a laser printer

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The choice of a printer is influenced by
-cost
-nature of document
-environment
-volume of work
Other Forms of Computer Output
a) Speech of output

-some computers can produce speech for use by the blind or in poor light
STORAGE DEVICES (Secondary)
-this is called backing up storage or auxiliary storage
-is used to supplement the computers main memory
-main memory is volatile and expensive therefore backing storage is used to store/hold
programs and data files when they are not required in the main memory
Factor influencing choices of backing storage device include:
• Cost(both and running costs must be acceptable)
• Capacity
• Speed(access time i.e the speed at which data maybe written on the storage media)
• Reliability(device should hold data without undue risk of loss or corruption)

Storage devices can be classified based on access i.e Either direct access storage devices
(DASDs) e.g hard disks, floppy disks or sequential access storage devices(SADs) e.g tape
drives. It can be classified as removable or non- removable media.
Examples of backing storage devices
-floppy disk drive
-Hard disk
-magnetic tape
-exchangeable disk unit
-Optical disk drives

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Floppy diskette Standard hard disk CD ROM Optical disks
Classification of computers
Computers are not homogenous, they differ from each other not only in their physical size but
also in the functions they perform
Classification of computers may be according to:
• Physical size(including processing power)-Mainframe
-Mini computers
-micro computers
-super computers
• Historic development of hardware(the generation classification)
• Environment it is going to be used in
• Purpose of the system(general or specific purpose)

A Physical Size Classification

a) Super Computers e.g Cray T90
-biggest in size
-can process trillion instructions in seconds
-mainly used by government and large corporations
b) Mainframe Computers
-also big in size
-can process millions of instructions per second
-used in big companies e.g in airline reservation, banks
-have huge memories, efficient processors and are very powerful
-can process hundreds of different program at the same time, handle massive
amounts of data, and respond to hundreds of different users, and co-ordinate hundreds
of different peripheral devices at the same time.
c) Mini computers e.g midrange computers
-were developed between 1960 and 1970
-Are physically smaller than mainframe computers and are a lot cheaper
-normally used as severs in network environments
-handle thousands of transactions per day
d) Micro computers (or personal computers)
-these were largely based on the silicon chip
-widely used in office automation and process control
e) Notebook computers
-small in size and easy to carry but similar in storage and processing capability to the
personal computer
f) Personal Digital Assistants (PDA’s)
-also called handheld computers or palmtops
-they are portable and capable of sharing information with personal computers

B Generation Classification
First generation computers (up to 1958)

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-only mainframe computers were used
-information was stored on vaccum tubes
-only 264 such computers were produced
Second generation computers (1958 to 1964)
-only mainframe were still being built
-vaccum tubes were replaced with transistors as storages of information
-computers were also a lot smaller and cheaper than the 1st generation computers
-18 200 computers were being used in 1964
Third generation computers (1964-1970)
-this started with the development of the IBNI system/360 computer
-transistors were replaced with ICs or silicon chips
-smaller and with bigger storage capacity
-by 1970, 10 000 such computers were in use worldwide
Fourth generation computers
-development of computers continued from 1970 around the silicon chip
Fifth generation computers
- This is a new generation that is still being developed
- The biggest development taking place with regard to software with lots of possibilities
still being explored like expert systems.

C Classification by Environment
-this classification recognizes the environment in which the computer is going to be used in
typical environments are:
• Personal usage
• Small business systems
• Large business systems
-computers can also be classified by formation as follows:
• Server computers
• Workstations(client machines)

Company Computers
Different computers in the same category can also differ from each other. When deciding to
purchase a computer one must look at the different categories of computer as well as the
different computers in the category.
Different computers can be compared with each other by looking at one or more of the
following factors:
• The clock speed of the computer as measured in megahytes (MH2)
• The capacity of the primary memory
• The type and size of external memory devices such as optical disks(CD ROM) or hard
disk size

• The software that can be installed for use on the computer

• Networking possibility of the computer
• Expansion possibility of the computer manufacturer or reseller and
• The after sales service offered by the manufacturer or reseller

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COMPARING COMPUTERS AND NEW TRENDS IN HARDWARE
-cheaper,faster and better machines in the trend
-micro computers are being the most important systems for end users
-computers are being made that can connect to the internet
-they also act as a global positioning system GP’s
-they also run multi media software
-there has been a move to combine PDAs with cell phones and multi media players (smart
phones)
-computer terminals have moved away from being stand alone to networked systems or
intelligent terminals
-major move towards use of input technologies with a more natural interface wher users can
enter data and instructions directly and easily into a system using input devices like electronic
mice, touch pads, scanning and voice recognition
-the processing speed of computers has continued to grow with the development of multi-core
processors (up to scores). Dual cores heading developed by Intel.

2. SOFTWARE
The software concept
Software is needed to instruct and manage the usage of hardware. It consists of programs and
instructions that:
a) Control the tools for users to develop application
b) Provide tools for users to develop application that perform actions to satisfy their
specific needs.
Software categories
-there are three categories
• System software
• Application software
• Development software

A SYSTEM SOFTWARE
it is a collection of programs that interact with the computer hardware and application software
programs creating a layer of insulation between the two.
-it contains instructions which manage a computer systems hardware components to co-
ordinate them so that they work efficiently.
-it schedules the computers time so as to make the best use of its time
-system software is further subdivided into the following categories
i) operating system
ii) database management system
iii) communicating control programs
iv) service and utility programs
v) programming language translators

i) Operating system

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These are the programs which control the way the computer operates and manages all of the
components of the computer system e.g printers, storage devices, memory

-it is a system of programs that run or control the execution of computer programs and act as
an interface with application programs. i.e. it provides one with the tools or commands that
enables them to interact with the PC. When one issues a command the OS translates it into a
code that the machine can use.
- it is an integrated system of programs that manages the operating systems of the CPU, controls
the input, output and storage resources and activities of a computer system. It can be said to be
the computers master control program
-the primary purpose of the operating system is to maximize the productivity of a computer
system. It helps application programs perform common operations such as entering data,
retrieving files, printing and displaying output

Functions of an Operating System

In general systems are expected to perform the following functions
a) User Interfacing
-allows a user to communicate with the computer in loading programs, accessing files
and accomplishing tasks through command driven, menu driven or graphical user
interfaces.
-in command driven interfaces, the user uses brief end commands
-in menu driven interfaces (GUIs) the user selects icons, bars, buttons, boxes or other
images to help him get things done by the system
b) Operating Environment Management
-operating system allows for multi tasking where several programs or tasks can be
processed at the same time
c) Resource Management
-managing the hardware resources of a computer system including the CPU, memory
storage devices and input/output peripherals
d) File Management
-controls the creation, deletion and access of data and programs
-maintain directories of information about the location characteristics of files stored
on a computer systems secondary storage devices
e) Task Management
-Accomplishes computing tasks as needed by the user
- Task management may involve multi-programming
- Allows for time sharing

Examples of operating systems

a) MS-DOS (Microsoft Disk Operating System)
-Used before Windows 95 came in 1995
-Instructions are input only through the keyboard
-Once a file is deleted it can never be recalled
-Not user friendly

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 b) Windows
-allows true multi tasking, networking
-has GUIs
-multi media capabilities
-deleted file goes to recycle bin

c) OS/2 WARP
-Has GUIs
-has virtual memory
-telecommunication

d) UNIX
-originally developed by AT and T but now offered by many vendors
-is multi tasking and multi user
-networking

e) The macintosh System

-is for apple from Macintosh micro computers
-has a popular GUI
-virtual memory
For it carry out the functions outlined above, it will have the following programs
➢ Translation programs
➢ Utility programs
➢ Control programs
➢ Communication programs
Language Translators

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Non machine languages must be converted into machine language to be executed by the CPU.
A language translation converts a statement from a high level programming language (called
source code). The translation converts the command given in human language into form the
computer has been programmed to understand before executing the instruction.
There are two types of language translators
-interpreter
-compiler
Interpreter
-is a language translator that converts each statement in a program into machine language and
executes the program statement at a time. No object code is permanently created hence each
time the program is run it has to be translated into machine code line by line.
Compiler
-it translates a complete program into a complete machine language programs that can be run
into entirety i.e. the object code once created and next time the program is executed no
compilation will be necessary.
Difference with an interpreter in that the compiler does both translation to machine language
and then uses the machine language program

Utility programs
It is a standard set of routines that assist the operation of the computer system by performing
some frequent required processes such as to sort and merge sets of data, copy and keep track
of computer jobs being run

Control programs
There are designed to manage the general functions of the processor, memory and terminate
interface

B) APPLICATION SOFTWARE

These are programs that help people accomplish specific tasks.

-includes all software that utilizes the information system to solve specific data processing
needs of users. Can also be said to be the software that performs the functions which the user
requires from the system, e.g data processing or process control.
-it sits on system software because it can’t run without the operating system and the system
utilities
-application software tells the computer how to accomplish specific tasks like word processing.
Examples of application software include AutoCAD, Netscape navigator, Microsoft word,
CorelDraw.
CRITERIA FOR SELECTING APPLICATION SOFTWARE
❖ Accuracy free from errors
❖ Flexibility-capable of handling high volumes of transactions and being able to adapt to
changes in business
❖ User-friendly i.e ease of use aided by clear documentation or manuals, clear menus, on
line help etc
❖ Performance- efficiency in both response and run time

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 ❖ Compatible with hardware
❖ Reasonable cost
❖ Must have continued support from supplier
❖ It must be original and current
Application software may be obtained from the following sources.
Off the shelf
In-house
From a contractor (outsourcing)
Open source
Prototyping (modeling)
(Read on advantages and disadvantages of each of the five)
-Application software can be sub divided into general application and the business enabling
software
a) G.A.S General APPLICATION SOFTWARE
Used for solving problems and processing needs of a local nature e.g software suites, WP,
spreadsheet, accounting packages and graphical packages
-the latest trend is to integrate all the general application software in one office suite that allows
all uses full integration and sharing of information between the different components
-G.A.S aims to support users in solving data processing tasks using software located locally in
the computer of the user.
All programs in a software suite use a similar graphical-user interface of icons, tools and status
bars and menus which gave them the same look and feel, making it easier for end users to learn
and use.
I) Spreadsheets
-A spreadsheet package is used to perform calculations that have been entered onto
a grid
-Such calculations may include the following:
• A statement of financial position
• Statement of cash flows
• Budgets
• General ledger analysis
• Stock records
• Tax planning
• Salary and wages analysis
• Profit projections etc
-it is possible to produce graphs, charts and other forms of companies on using figures entered
on a spreadsheet
-Popular examples of spreadsheets packages are: Microsoft Excel, Lotus 1-2-3, Qualtro Pro.
ii) Word Processing
-such package helps the user carry out specific tasks for example to type and manipulate text
-It has many advantages over the typewriter:
• The ability to edit parts of the text without re-writing the whole document
• Allows for spell checking from the computers dictionary file
• Allows for centering text, bolding, underline and use of variety of fonts, (typefaces)

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 • Allows for production of multiple original copies from one soft copy
-popular word processing packages are Microsoft Word, Lotus Words, WordPerfect, Quthio
Word.
iii) Databases
-this is an organized store of information
-used to store records
-can store and filter data for separate viewing
-popular packages include Microsoft Excel, Lotus Approach, Paradox, dBase IV, Data Ease
iv) Graphics
-for designing graphs and text charts/posters, for producing slides for use on overhead
projectors
-can also produce charts
-Examples are Microsoft Excel, Lotus Freelance, Harvard graphics, Corel Draw
v) Desktop Publishing
-they give the user powerful and versatile page design capabilities
-used for production of magazines, catalogues, invitation cards, business cards and other
sophisticated documents.
-examples include Microsoft publisher, PageMaker, Ventura and frame maker
Office suites
Many applications are grouped together into suites which users can purchase as one product
containing for example WP, a spreadsheet, graphics application, Desktop Publishing, Database
Application.
vi) Business and Accounting Software
-they mainly process transactions as they take place
-all the various functions of the business are supported by these software packages i.e
accounting, marketing, production, finance, personal and management
-Accounting packages may be developed for business in general (horizontal accounting
packages)
-they may also be developed for specific industries (e.g doctors, lawyers, accountancy firms
etc (vertical accounting packages)
The more common modules found on a horizontal accounting package are:
• General ledger
• Debtors
• Creditors
• Salaries and wages
• Stock control
• Sales orders
Other software used by organizations to process and organize the flow of data in their
organization are Enterprise applications and these include:
• CRM-Customer Relationship management
• ERP – Enterprise Resource Planning
• HRM systems
• Project management Software
vii) Intelligent Software
-these are programmes that can emulate human behavior

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-the execution of tasks that require human intelligence by a computer is known as artificial
intelligence i.e artificial intelligence is defined as the effort to develop computer based system
that can behave like humans with the ability to learn languages, accomplish physical tasks
(robotics), use a perceptual apparatus that informs their physical behavior and language (oral
& visual perception system)
-Artificial intelligence software accumulates knowledge, learns from experience and can then
modify its subsequent reasoning (shows human behavior)
Examples of artificial intelligence are natural languages, visual recognition, robotic, voice
recognition bur expert systems have the most significant impact on business.

Businesses are interested in artificial intelligence because of the realization

❖ To eliminate routine & unsatisfying jobs held by people
❖ To enhance the organizations knowledge base by suggesting solutions to specific
problems that are too massive and complex to be analysed by human beings in a short
period of time
❖ To overcome the drawbacks of human feeling like fatigue & worry, thus can be useful
advisers in time of crisis
❖ To store information in an active form i.e create an organizational knowledge base that
many employees can examine thus others can learn rules of thumb not found in
textbooks
❖ To preserve expertise that might be lost through retirement, resignation or death of an
acknowledged expert
EXPERT SYSTEM
-An expert is computerised intelligent software that allows non-expert to make decisions that
are compatible/comparable to those of an expert in that problem area. Can also be said to be a
knowledge intensive computer program that capture the expertise of a human in limited
domains of knowledge. Hence we can say that is an interactive system that responds to
questions, asks for clarification, makes recommendations and generally aid in the decision
making process.
-examples of expert systems are those used in:
-auditing
-tax and financial planning
-education and
-monitor controls present in an intelligence software

b) E-BUSINESS ENABLING SOFTWARE (EBES)

Allows the user to process information using the internet as a communicating medium
e.g. web browsers,e-mail and electronic commercial systems.i.e. this software enables
users to connect electronically with any other user on the internet
-Examples are Web Browser, web servers and electronic mail and Groupware

i) Web Browsers, Web Servers and Electronic mail

-A web browser like Netcape, Navigator or Microsoft Internet Explorer allows for the end user
to access information on the World Wide Web (www) by using hyperlinked text and graphical
images. The World Wide Word (WWW) or simply the Web is another commonly used Internet

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service. The World Wide Web is a system of Internet servers that supports hypertext to access
several Internet protocols on a single interface. It provides Internet users with a uniform and
convenient means of accessing a wide variety of resources including pictures, text, sound and
video, available on the Internet.
-The browser accesses a web server. The web server provides information to user’s web
browser in the form of HTML (Hyper Text Mark-up Languages) pages
-Electronic mail (e-mail) has changed the way people work and communicate
-E-business software is software that enables individuals and organizations to transact over the
internet and include business and accounting software that uses the internet as a way of
communicating between various business partners(like supply chain management)

ii) Groupware
-is a collaboration software and is that software that helps work groups and teams work together
to accomplish group assignments no matter where they physically happen to be.
-e.g Lotus notes: Microsoft Exchange
-Groupware is sometimes divided into:

a) Communication tools-email, fax and voice mail

Electronic mail (e-mail) refers to the sending of digitally encoded messages through the
network. Electronic mail is one of the fastest and easiest ways of sending electronic messages
from one person to another or to a group. Email systems enable us to conveniently and quickly
send a message to many people at one time
b) Conferencing tools-data, voice and conferencing, message bands and chat rooms
c) Collaborative management tools-electronic calendars, project management systems and
workflow systems

NEW TRENDS IN SOFTWARE

-Move away from custom designed software/programs developed by programmers

-People/organizations now prefer off the shelf software packages developed by software
vendors
-Software vendors will compete more and more to win corporate customers on the basis of
features, usability and price
-Groupware is also coming up. This is software that is designed to enable groups of employees
to work together and share information more easily
-software is becoming more interactive and easier to use through the use of printer devices like
the mouse.
Voice recognition is now being used by people to interact with the computer by speaking
-artificial intelligence features now exist in most new generation packages e.g wizards that help
the end users to perform common software function
Business software that makes corporate data available to all end users using e-based
technologies
-Range of software has been developed for PDAs
-The use of the internet for voice calls Voice over Internet Protocol (VoIP)

1. DATABASES

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A database is a single organized collection of structured data, stored with a minimum of
duplication of data items so as to provide a consistent and controlled pool of data. This data is
common to all users of the system, but is independent of programs that use data. Databases
therefore represent a radically different approach to solving the problems highlighted earlier.
The independence of the database may find it convenient to imagine that they are using an
integrated file system

Databases are normally set up in order to meet the information needs of major parts of an
organization. Although the long term goal may end up with a single database it is very
common for an organization to set a series of separate databases in the first instance because
of the time, risks and costs involved in doing the whole job in one go. It is not possible to
construct a database in one single operation, it is usually built up section by section. During
this process it is possible to:
a. Add new files of data
b. Add new fields to records already present in the base
c. Create relationship between the items of data

A database requires to be stored on large capacity direct access devices. Databases may be
classified according to the approaches taken to database organising. The classes are:
a. Relational
b. Network
c. Hierarchical
d. File inversions

Relational databases- is a database structured to recognize relations between stored items of

information. It uses types of tables called relations. The term “relation” in this regard refers to
a table and note that relations are not the same as relationships (A relationship, in the context
of databases, is a situation that exists between two relational database tables while each row is
called a record or tuple). They are already the most common type of database to be found on
minicomputer systems, and simplified versions of them are well established as the most
common type on PCs. Leading independent suppliers include ORACLE.

Advantages -Relational databases can be used with little or no training

-Database entries can be modified without specifying the entire body.

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What components must a relational database have in order to be used to collect and analyze
information?
A relational database is comprised of the following components:
• Entities – anything about which the organization wants to collect and report on (e.g.
customers information)
• Attributes – represent information about the entity (e.g. customer name, address, etc.
Together these attributes form records.
• Relationships – identify how entities relate to one another. For example, the entity
customer relates to another entity customer orders (answers the question, which orders
are from which customer?)
• Primary key – each record must be unique in order to maintain data integrity. For
example in the customer table, a specific customer should only be represented once
using a primary key to control this (customer id).
• Foreign key - is used to connect related entities to one another. For example, the
primary key customer id is placed in the order table for each order from that customer.

The relational database allows for many benefits including:

• Data integrity – by storing information in separate entities and making sure data is
represented only once in the system, this allows data to be inserted, updated and
archived- with minimal redundancy and inconsistencies.
• Data sharing – it is easier to share data with multiple applications and users.
• Data reporting and flexibility – the database can be searched easily to answer business
questions, produce reports, etc. These queries and reports can be reused or revised as
needed by users.

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 Network databases have been around in several forms for a number of years. Network
databases are based upon ideas similar to those used for linked lists. The links are used to
express relationships between different items of data. Most network databases are proprietary
and run on particular manufacturer’s mainframes e.g social networks. When new sets of data
are added, it is often found that some of the required data is already stored for the other
purposes. The database is maintained by a “single input”. This means that just as there is little
duplication of data, there is also no duplication of inputs. One transaction will cause all the
necessary changes to be made to the data. As the base is expanded, or as user requirements
change, the link or relations in the database can be changed and new relationships can be
established. The user is unaware of the structure of the database. The Database Management
System (details shortly) provides the user with the services needed and handles the
technicalities of maintaining and using the data.

MODULE 1 MODULE 2 MODULE 3

Student 1 Student 2 Student 3 Student 4 Student 5

This illustration of a network data model showing the relationship the students in a University
have to the courses they take represents an example of logical many-to-many relationships.

Hierarchical Database Structure is data which is represented by a structure that is similar to

the root system of a tree, with data arranged in levels. The elements further down the system
and subordinates are as the hierarchy of employees in an organization. Finding a record usually
requires one to start at the top of the hierarchy and work downwards to the required data. While
each level can have a number of subordinates, these subordinates can only point to one superior.
This is termed a one-to-many relationship.

Parent
COMPANY

DIVISION 1 Child DIVISION 2 Child

Parent

DEPARTMENT 1 Child DEPARTMENT 2 Child

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 Parent

MANAGER 1 MANAGER 2
Child Child

The database management system (DBMS)

Definition
A database management system (DBMS) is system software for creating and managing
databases. The DBMS provides users and programmers with a systematic way to create,
retrieve, update and manage data
The database management system is a complex software system that constructs, expands and
maintains the database. It also provides the controlled interface between the user and the data
in the base. The DMBS allocates storage to data. It maintains indices so that any required data
can be retrieved, and so that separate items of data in the base can be cross-referenced. The
structure of the database is dynamic and can be changed as needed. (NB For the sake of
generality and simplicity operation are to be described in terms of records or files. However
the reader should note that the actual structure and organization of the data is not merely in the
form of simple files but in terms of such things as rows, tables or nodes according to the
database’s type. e.g relational or network)
The DBMS maintains the data in the base by:
a. Adding new records
b. Deleting “dead” records (i.e. moving the inactive MySQL records to a separate table
designed to hold inactive accounts)
c. Amending records

In addition to these functions (which are performed by any file-maintenance program) it can
expand the database by adding new sets of records or new data to existing records. The DBMS
provides an interface with user programs. These may be written in a number of different
programming languages. However, the programmer need not be familiar with the DBMS. The
DBMS provides facilities for different types of file processing. It can:
a. Process a complete file (serially or sequentially)
b. Process required records (selective, sequential or random)
c. Retrieve individual records

It can also, as has been explained above, retrieve related records or related data within records.
The DBMS also has the function of providing security for the data in the database. The main
aspects of this are:
➢ Protecting the data against unauthorized access
➢ Safeguarding data against corruption
➢ Providing recovery and restart facilities after a hardware or software failure

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The DBMS keeps statistics of the use made of the data in the database. This allows redundant
data to be removed. It also allows data that is frequently used to be kept in a readily accessible
form so that time is saved.
The database administrator (DBA)
The importance of a database is such that a special manager is often appointed, sometimes with
a staff. His or her functions are described below. The DBA must have a sound knowledge of
the structure of the database and of the DBMS. The DBA must also be thoroughly conversant
with the organization, its systems, and the information needs of the managers.
The DBA is responsible for ensuring that:
a. The data in the database meets the information needs of the organization
b. That the facilities for retrieving the data and for structuring reports are appropriate to
the needs of the organization

The DBA is responsible for the following documentation:

a. The data dictionary
b. Manuals for users describing the facilities the database offers and how to make use of
these facilities.

Another function is to supervise the addition of new data. For this purpose, the DBA will have
to liaise with the managers who use the data and the systems analysts and programmers who
develop the systems. Security of the database is also the responsibility of the DBA and further,
the requirements of privacy. The DBA is also responsible for periodic appraisal of data held in
the base to ensure that is complete, accurate and not duplicated.
The uses made of the database are too numerous to mention. Some of the following are
examples:
a. Accounting
b. Stock control
c. Modifications
d. Integration

Advantages of a database
a. Information supplied to managers is more valuable because it is based on a
comprehensive collection of data instead of files that contain only the data needed for
one application.
b. As well as routine reports, it is possible to obtain ad hoc reports to meet particular
requirements.
c. There is an obvious economic advantage in not duplicating data. In addition, errors due
to discrepancies between two files are eliminated
d. The amount of input preparation needed is minimized by the ‘single input’ where any
change in configuration automatically causes the customer charges to be amended.
e. A great deal of programming time is saved because the DBMS handles the construction
and processing of files and the retrieval of data.

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 f. The use of integrated systems is greatly facilitated.
g. Data abstraction and independence
h. Data security
i. A locking mechanism for concurrent access
j. An efficient handler to balance the needs of multiple applications using the same data
k. The ability to swiftly recover from crashes and errors, including restartability and
recoverability
l. Robust data integrity capabilities
m. Logging and auditing of activity
n. Simple access using a standard application programming interface (API)
o. Uniform administration procedures for data

The role of the accountant

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