Accounting 503

CIS Audit
DATABASE
is a collection of related files that are usually integrated, linked or cross-referenced to one another. The
advantage of a database is that data and records contained in different files can be easily organized and
retrieved using specialized database management software called a database management system
(DBMS) or database manager.
DATABASE MANAGEMENT SYSYTEMS
A database management system is a set of software programs that allows users to create, edit and update
data in database files, and store and retrieve data from those database files. Data in a database can be
added, deleted, changed, sorted or searched all using a DBMS. If you were an employee in a large
organization, the information about you would likely be stored in different files that are linked together.
One file about you would pertain to your skills and abilities, another file to your income tax status, another
to your home and office address and telephone number, and another to your annual performance ratings.
By cross-referencing these files, someone could change a person's address in one file and it would
automatically be reflected in all the other files. DBMSs are commonly used to manage:
Membership and subscription mailing lists
Inventory information
Accounting and bookkeeping information
Personal records
The data obtained from scientific research
Library information
Customer information

DBMSs and File Management Systems

Computerized file management systems (sometimes called file managers) are not considered true
database management systems because files cannot be easily linked to each other. However, they can
serve as useful data management functions by providing a system for storing information in files. For
example, a file management system might be used to store a mailing list or a personal address book.
When files need to be linked, a relational database should be created using database application software
such as Oracle, Microsoft Access, IBM DB2, or FileMaker Pro.
The Advantages of a DBMS
1. Improved availability: One of the principle advantages of a DBMS is that the same information
can be made available to different users.
2. Minimized redundancy: The data in a DBMS is more concise because, as a general rule, the
information in it appears just once. This reduces data redundancy, or in other words, the need to
repeat the same data over and over again. Minimizing redundancy can therefore significantly
reduce the cost of storing information on hard drives and other storage devices. In contrast, data
fields are commonly repeated in multiple files when a file management system is used.
3. Accuracy: Accurate, consistent, and up-to-date data is a sign of data integrity. DBMSs foster data
integrity because updates and changes to the data only have to be made in one place. The chances
of making a mistake are higher if you are required to change the same data in several different
places than if you only have to make the change in one place.
4. Program and file consistency: Using a database management system, file formats and system
programs are standardized. This makes the data files easier to maintain because the same rules
and guidelines apply across all types of data. The level of consistency across files and programs
also makes it easier to manage data when multiple programmers are involved.
5. User-friendly: Data is easier to access and manipulate with a DBMS than without it. In most cases,
DBMSs also reduce the reliance of individual users on computer specialists to meet their data
needs.
6. Improved security: As stated earlier, DBMSs allow multiple users to access the same data
resources. This capability is generally viewed as a benefit, but there are potential risks for the
organization. Some sources of information should be protected or secured and only viewed by
select individuals. Through the use of passwords, database management systems can be used to
restrict data access to only those who should see it.
The Disadvantages of a DBMS

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There are basically two major downsides to using DBMSs. One of these is cost, and the other the threat to
data security.
1. Cost: Implementing a DBMS system can be expensive and time-consuming, especially in large
organizations. Training requirements alone can be quite costly.
2. Security: Even with safeguards in place, it may be possible for some unauthorized users to access
the database. In general, database access is an all or nothing proposition. Once an unauthorized
user gets into the database, they have access to all the files, not just a few. Depending on the
nature of the data involved, these breaches in security can also pose a threat to individual privacy.
Steps should also be taken to regularly make backup copies of the database files and store them
because of the possibility of fires and earthquakes that might destroy the system.
Types of Database Management Systems

DBMSs come in many shapes and sizes. For a few hundred dollars, you can purchase a DBMS for your
desktop computer. For larger computer systems, much more expensive DBMSs are required. Many
mainframe-based DBMSs are leased by organizations. DBMSs of this scale are highly sophisticated and
would be extremely expensive to develop from scratch. Therefore, it is cheaper for an organization to lease
such a DBMS program than to develop it. Since there are a variety of DBMSs available, you should know
some of the basic features, as well as strengths and weaknesses, of the major types.
There are four structural types of database management systems: hierarchical, network, relational, and
object-oriented.

Hierarchical Databases (DBMS), commonly used on mainframe computers,

have been around for a long time. It is one of the oldest methods of organizing
and storing data, and it is still used by some organizations for making travel
reservations. A hierarchical database is organized in pyramid fashion, like the
branches of a tree extending downwards. Related fields or records are grouped
together so that there are higher-level records and lower-level records, just like
the parents in a family tree sit above the subordinated children.
Based on this analogy, the parent record at the top of the pyramid is called the
root record. A child record always has only one parent record to which it is
linked, just like in a normal family tree. In contrast, a parent record may have more than one child record
linked to it. Hierarchical databases work by moving from the top down. A record search is conducted by
starting at the top of the pyramid and working down through the tree from parent to child until the
appropriate child record is found. Furthermore, each child can also be a parent with children underneath it.
The advantage of hierarchical databases is that they can be accessed and updated rapidly because the
tree-like structure and the relationships between records are defined in advance. However, this feature is a
two-edged sword. The disadvantage of this type of database structure is that each child in the tree may
have only one parent, and relationships or linkages between children are not permitted, even if they make
sense from a logical standpoint. Hierarchical databases are so rigid in their design that adding a new field
or record requires that the entire database be redefined.

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Network databases, are similar to hierarchical databases by also

having a hierarchical structure. There are a few key differences,
however. Instead of looking like an upside-down tree, a network
database looks more like a cobweb or interconnected network of
records. In network databases, children are called members and
parents are called owners. The most important difference is that each
child or member can have more than one parent (or owner).
Like hierarchical databases, network databases are principally used on
mainframe computers. Since more connections can be made between
different types of data, network databases are considered more flexible. However, two limitations must be
considered when using this kind of database. Similar to hierarchical databases, network databases must be
defined in advance. There is also a limit to the

Relational Databases
In relational databases, the relationship between data files is
relational, not hierarchical. Hierarchical and network databases require
the user to pass down through a hierarchy in order to access needed
data. Relational databases connect data in different files by using
common data elements or a key field. Data in relational databases is
stored in different tables, each having a key field that uniquely
identifies each row. Relational databases are more flexible than either
the hierarchical or network database structures. In relational
databases, tables or files filled with data are called relations, tuples designates a row or record, and
columns are referred to as attributes or fields.
Relational databases work on the principle that each table has a key field that uniquely identifies each row,
and that these key fields can be used to connect one table of data to another. Thus, one table might have
a row consisting of a customer account number as the key field along with address and telephone number.
The customer account number in this table could be linked to another table of data that also includes
customer account number (a key field), but in this case, contains information about product returns,
including an item number (another key field). This key field can be linked to another table that contains
item numbers and other product information such as production location, color, quality control person, and
other data. Therefore, using this database, customer information can be linked to specific product
information.
The relational database has become quite popular for two major reasons. First, relational databases can be
used with little or no training. Second, database entries can be modified without redefining the entire
structure. The downside of using a relational database is that searching for data can take more time than if
other methods are used.

Object-oriented Databases (OODBMS)

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Able to handle many new data types, including graphics, photographs, audio, and video, object-oriented
databases represent a significant advance over their other database cousins. Hierarchical and network
databases are all designed to handle structured data; that is, data that fits nicely into fields, rows, and
columns. They are useful for handling small snippets of information such as names, addresses, zip codes,
product numbers, and any kind of statistic or number you can think of. On the other hand, an objectoriented database can be used to store data from a variety of media sources, such as photographs and
text, and produce work, as output, in a multimedia format.
Object-oriented databases use small, reusable chunks of software called objects. The objects themselves
are stored in the object-oriented database. Each object consists of two elements: 1) a piece of data (e.g.,
sound, video, text, or graphics), and 2) the instructions, or software programs called methods, for what to
do with the data. Part two of this definition requires a little more explanation. The instructions contained
within the object are used to do something with the data in the object. For example, test scores would be
within the object as would the instructions for calculating average test score.
Object-oriented databases have two disadvantages. First, they are more costly to develop. Second, most
organizations are reluctant to abandon or convert from those databases that they have already invested
money in developing and implementing. However, the benefits to object-oriented databases are
compelling. The ability to mix and match reusable objects provides incredible multimedia capability.
Healthcare organizations, for example, can store, track, and recall CAT scans, X-rays, electrocardiograms
and many other forms of crucial data.

UTILITY PROGRAMS
A program that supports using the computer, an application or a development environment. Also called
"utilities," utility software is programmed like any other software, except that it plays a supporting role.
Usually relatively small programs, they typically perform a limited number of tasks.
Utility programs include file management (creating, moving and renaming folders, copying and deleting
files), file search, comparing file contents as well as performing diagnostic routines to check the
performance and current health of the hardware.
They are software programs that add functionality to your computer or help your computer perform better.
These include antivirus, backup, disk repair, file management, security, and networking programs. Utilities
can also be applications such as screensavers, font and icon tools, and desktop enhancements. Some
utility programs help keep your computer free from unwanted software such as viruses or spyware, while
others add functionality that allows you to customize your desktop and user interface. In general,
programs that help make your computer better are considered utilities. And unlike water and electric bills,
computer utilities don't send you a bill every month!
A Utility program is designed to do one or perhaps two tasks very well and nothing else.
Here are some very common tasks that are carried out by various Utility programs

File sorting
File renaming
File conversion (e.g. convert a sound file
to MP3)
File repair

Disk monitoring
(defragging)
Printing jobs
Backing up data.
Anti-Virus

and

defragmentation

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