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Data Information And Information System Essay

2370 words - 10 pages

Data: Raw material Data collection costs money Collect only necessary and sufficient data Data is generally used by machines Data is useless unless it is process to create information Information: Processed data Data process by machines giving information Information is used to run an organization efficiently Information used by managers to initiate actions TYPES OF INFORMATION Operational Information - used to day to day operations Example information needed by a shopkeeper: Daily sales account List of low stock items to be re-ordered List of overstock items Long overdue payments Profit loss account Tactical information - used to improve profitability Example information needed by a ...view middle of the document...

Example: Order system that a company uses to enter orders and apply payments against a customer’s balance Level-0 DFD Shows the system’s major processes, data flows, and data stores at a high level of abstraction When the Context Diagram is expanded into DFD level-0, all the connections that flow into and out of process 0 needs to be retained. Lower-Level Diagrams Functional Decomposition An iterative process of breaking a system description down into finer and finer detail Uses a series of increasingly detailed DFDs to describe an IS Balancing The conservation of inputs and outputs to a data flow process when that process is decomposed to a lower level Ensures that the input and output data flows of the parent DFD are maintained on the child DFD STRATEGIES FOR DEVELOPING DFDS Top-down strategy Create the high-level diagrams (Context Diagram), then low-level diagrams (Level-0 diagram), and so on Bottom-up strategy Create the low-level diagrams, then higher-level diagrams Over the past 50 years, a number of different approaches or models have represented accounting information systems. Each new model evolved because of the shortcomings and limitations of its predecessor. An interesting feature in this evolution is that the newest technique does not immediately replace older models. Thus, at any point in time, various generations of systems exist across different organizations and may even coexist within a single enterprise. The modern auditor needs to be familiar with the operational features of all AIS approaches that he or she is likely to encounter. 1. The Manual Process Model The most oldest and traditional form of accounting systems. Includes the physical task of record keeping this approach, however, is simply a training aid. These days, manual records are never used in practice. 2. The Flat-File model Often associated with so-called legacy systems. This model is still extensively used by organizations today. The flat-file model describes an environment in which individual data files are not related to other files. End users in this environment own their data files rather than share them with other users. Thus, stand-alone applications rather than integrated systems perform data processing. Legacy System - These are large mainframe systems that were implemented in the late 1960s through the 1980s. Problems with Flat-file model 1. Data Storage - To meet the private data needs of users, organizations must incur the costs of both multiple collection and multiple storage procedures. Some commonly used data may be duplicated dozens, hundreds, or even thousands of times. 2. Data Updating - all changes must be made separately for each user. This adds significantly to the task and the cost of data management. 3. Currency of Information - In contrast to the problem of performing multiple updates is the problem of failing to update all the user files affected by a change in status. If update information is not properly ...

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