 The manual process model is the oldest and most traditional form of accounting

systems. Manual systems constitute the physical events, resources, and personnel
that characterize many business processes. This includes such tasks as order-
taking, warehousing materials, manufacturing goods for sale, shipping goods to
customers, and placing orders with vendors. Traditionally, this model also includes
the physical task of record keeping. Often, manual record keeping is used to teach
the principles of accounting to business students. However, this approach is simply a
training aid. Manual records are never used in practice 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. The flat-file approach is most often associated
with so-called legacy systems. These are large mainframe systems that were
implemented in the late 1960s through the 1980s. Organizations today still use these
systems extensively. Eventually, modern database management systems will
replace them, but in the meantime accountants must continue to deal with legacy
system technologies.

 Data Storage
 An efficient information system captures and stores data only once and makes this
single source available to all users who need it. In the flat-file environment, this is not
possible
 Dependency
 Another problem with the flat-file approach is the user’s inability to obtain additional
information as his or her needs change. This problem is called task-data
dependency
Flat Files Limit Data Integration

The flat-file approach is a single-view model. Files are structured, formatted, and arranged
to suit the specific needs of the owner or primary user of the data. Such structuring,
however, may exclude data attributes that are useful to other users, thus preventing
successful integration of data across the organization
THE DATABASE MODEL

An organization can overcome the problems associated with flat files by implementing the
database model to data management. Figure 1-13 illustrates how this approach centralizes
the organization’s data into a common database that is shared by other users. With the
organization’s data in a central location, all users have access to the data they need to
achieve their respective objectives. Access to the data resource is controlled by a database
management system (DBMS). The DBMS is a special software sys- tem that is
programmed to know which data elements each user is authorized to access. The user’s
pro- gram sends requests for data to the DBMS, which validates and authorizes access to
the database in accordance with the user’s level of authority. If the user requests data that
he or she is not authorized to access, the request is denied
  ETHICAL ISSUES IN BUSINESS

Harassment and Discrimination

Sexism and bigotry can crop up anywhere. In the working world, they're particularly
toxic because of the power some employees have over others. Harassment not only
makes employees miserable, it can affect their pay and their career. Movie mogul
Harvey Weinstein, for example, has been accused of harassing and assaulting dozens
of women. Women who resisted say Weinstein worked to blacklist them and ruin their
careers.
Playing Favorites
It's perfectly normal for managers to hire people from their social network. It becomes
an ethical issue if the social connection becomes more important than actual ability.
Nepotism– hiring a relative – and favoritism are despised because they tell other
workers that job performance is less important than blood, or being buddies with upper
management. Even if the choice is a good one, it can alienate workers and raise
doubts about the manager's decisions.
Protecting Client Privacy
It seems every week another company announces that customers' confidential data
has been exposed or hacked. Sometimes it can't be helped: hackers are very good at
what they do. Other hacks are preventable and only happen because of corporate
negligence. For example, some security experts told Wired magazine in 2017 that
Equifax could probably have prevented its massive data breach with better security.
Keeping Employees Safe
There are millions of workplace accidents and illnesses reported each year. According
to the Bureau of Labor Statistics, there were 2.9 million non-fatal workplace injuries
and illnesses in 2016. Some of those accidents were due to negligence with
employers ignoring the legal requirements for keeping the workplace safe. Common
problems often include not using guards on sharp cutting equipment, and not taking
steps to prevent falls or electrical accidents.
Business ethics are the moral principles that act as guidelines for the way a business
conducts itself and its transactions. In many ways, the same guidelines that individuals
use to conduct themselves in an acceptable way – in personal and professional
settings – apply to businesses as well.
 
 

  Computer ethics is defined as the analysis of the nature and social impact of computer
technology and the corresponding formulation and justification of policies for the ethical use of
such technology. The typical problem with computer ethics is the policy vacuum that arises from
the new capabilities of the technology. Several issues contribute to this vacuum, which can be
understood by studying and improving the conceptual vacuum that subsequently develops.
Examination of two stages of the computer revolution (the technological introduction stage and
the permeation stage) reveal what steps may be needed to take in preparation to formally
integrate technology into society.
 THE TEN COMMANDMENTS OF COMPUTER ETHICS
 Thou shalt not use a computer to harm other people.

 Thou shalt not interfere with other people's computer work.

 Thou shalt not snoop around in other people's computer files.

 Thou shalt not use a computer to steal.

 Thou shalt not use a computer to bear false witness.

 Thou shalt not copy or use proprietary software for which you have not paid
(without permission).

 Thou shalt not use other people's computer resources without authorization
or proper compensation.

 Thou shalt not appropriate other people's intellectual output.

 Thou shalt think about the social consequences of the program you are
writing or the system you are designing.

 Thou shalt always use a computer in ways that ensure consideration and
respect for other humans
Computer accounting systems are software programs that are stored
on a company's computer, network server, or remotely accessed via
the Internet.
Computerized accounting systems allow you to set up income and
expense accounts, such as rental or sales income, salaries,
advertising expenses, and material costs. They also can be used to
manage bank accounts, pay bills, and prepare budgets. Depending
upon the program, some accounting systems also allow you to prepare
tax documents, handle payroll, and manage project costing.

EXAMPLES
of accounting software packages designed for small businesses
include QuickBooks, Sage (or Peachtree), and Bookkeeper. Depending
upon which version of these programs you buy, you'll be able to set up
income and expense accounts, track vendor billing, and manage
payroll. These off-the-shelf systems generally have you up and running
fairly quickly, depending on the complexity of your business. Most
include basic report templates and you'll probably be able to
customize reports to get information in a way that is more fitting for
your needs.

DIFFERENCE BETWEEN BATCH AND REAL TIME SYSTEM

Sr. Batch Realtime

No Processing Processing
. System System

1 Jobs with similar In this system,

requirements are events mostly
batched together external to
and run through computer system
the computer as are accepted and
a group. processed within
certain deadlines.
2 This system is This processing
particularly suited system is
for applications particularly suited
such as Payroll, for applications
Forecasting, such as scientific
Statistical experiments, Flight
analysis etc. control, few
military
applications,
Industrial control
etc.

3 It provides most Complex and

economical and costly processing
simplest requires unique
processing hardware and
method for software to handle
business complex operating
applications. system programs.

4 In this system Supports random

data is collected data input at
for defined period random time.
of time and is
processed in
batches.

5 In this system No sorting is

sorting is required.
performed before
processing.

6 It is It is action or event
measurement oriented.
oriented.

7 Transactions are Transactions are

batch processed processed as and
and periodically. when they occur.

8 In this processing It has to handle a

there is no time process within the
 limit. specified time limit
otherwise the
system fails.

ALTERNATIVE DATA is defined as non-traditional data that can

provide an indication of future performance of a company outside
of traditional sources, such as company filings, broker forecasts,
and management guidance. This data can be used as part of the
pre-trade investment analysis, as well as helping investors monitor
the health of a company, industry, or economy.

A TRANSACTION PROCESSING SYSTEM is a set of information which

processes the data transaction in database system that
monitors transaction programs.  The system is useful when
something is sold over the internet. It allows for a time delay
between when an item is being sold to when it is actually sold.
An example is that of a sporting event ticket. While the customer
is filling out their information to purchase the seat ticket; the
transaction processing system is holding the ticket so that
another customer cannot also buy it. It allows for a ticket not
to be sold to two different customers.

Types
Batch processing: Processes several transactions at the same
time, with a time delay.
Real-time processing: Deals with one transaction at a time and
does not have a time delay.
Features
Rapid Response: The response time of a transaction processing
system (TPS) is important because a business cannot afford to
have their customers waiting for long periods of time before
making a transaction.
Reliability: A good TPS must be very reliable because if it were
to break down businesses could lose a huge portion of revenue
because customers would not be able to purchase their products.
Inflexibility: The TPS must work the same way for every
transaction as long as the TPS is being used. The formality and
structure should never change.
Controlled processing: The TPS must be able to allow authorized
employees to be able to access it at any time.
Storing and Retrieving Data
 A TPS must be able to easily be accessed by authorized employees
so that information in the TPS can be retrieved. The information
that goes through a TPS must never be deleted so that there will
not be any confusion of what orders have gone through it. It is a
good idea to have a back up hard drive so that older information
can still be stored, but will not slow down the server which
houses the TPS.

Transaction processing means dividing information processing up into individual, indivisible

operations, called transactions, that complete or fail as a whole; a transaction can’t remain
in an intermediate, incomplete, state (so other processes can’t access the transaction’s data
until either the transaction has completed or it has been “rolled back” after failure).
Transaction processing is designed to maintain database integrity (the consistency of
related data items) in a known, consistent state.

Types of transaction cycles in

accounting
A transaction cycle is an interlocking set of business transactions . Most of
these transactions can be aggregated into a relatively small number of
transaction cycles related to the sale of goods, payments to suppliers ,
payments to employees, and payments to lenders. We explore the nature of
these transaction cycles in the following bullet points:

 Sales cycle. A company receives an order from a customer , examines

the order for creditworthiness , ships goods or provides services to the
customer, issues an invoice, and collects payment. This set of sequential,
interrelated activities is known as the sales cycle, or revenue cycle.

 Purchasing cycle. A company issues a purchase order to a supplier for

goods, receives the goods, records an account payable , and pays the
supplier. There are several ancillary activities, such as the use of petty cash
 or procurement cards for smaller purchases. This set of sequential,
interrelated activities is known as the purchasing cycle, or expenditure cycle.

 Payroll cycle. A company records the time of its employees, verifies

hours and overtime worked, calculates gross pay , deducts taxes and other
withholdings , and issues paychecks to employees. Other related activities
include the payment of withheld income taxes to the government, as well as
the issuance of annual W-2 forms to employees. This cluster of activities is
known as the payroll cycle.

 Financing cycle. A company issues debt instruments to lenders, followed by

a series of interest payments and repayments of the debt. Also, a company issues
stock to investors in exchange for periodic dividend payments and other payouts if
the entity is dissolved. These clusters of transactions are more diverse than the
preceding transaction cycles, but may involve substantially more money.