DATABASE MANAGEMENT

Charlene E. Matubis BSA-III

Accounting Information Systems
Chapter 9 Reporting

Two Components of Computer

Processing

1. Data
2. Instructions (programs)

Two methods for designing interface between programs and data:

1. File-oriented (flat-file) processing: A

specific data file was created for each
application [legacy systems]
2. Data-oriented processing: Create a
single data repository to support
numerous applications [current
systems]

FLAT FILE ENVIRONMENT

DATABASE APPROACH

ADVANTAGES AND
DISADVANTAGES OF
THE TWO METHODS

Flat-File Problems( Data Redundancy)

Data Storage - creates excessive storage costs of paper
documents and/or magnetic form
Data Updating - any changes or additions must be
performed multiple times
Currency of Information - potential problem of failing to
update all affected files
Task-Data Dependency - users inability to obtain
additional information as his or her needs change

Advantages of the Database

Approach
Data sharing/centralized database resolves flat-file
problems:
No data redundancy - Data stored only once, eliminating
data redundancy and reducing storage costs.
Single update - Because data are in only one place,
requires only single update procedure, reducing
time/cost of keeping database current.
Current values - Change to database made by any
(authorized) user yields current data values for all other
(authorized) users.
Task-data independence - As users information needs
expand beyond immediate domain, new needs can be
more easily satisfied than under flat-file approach.

Disadvantages of the Database Approach

Can be costly to implement

additional hardware, software, storage, and network

resources are required yet these costs continue to
drop

Can only run in certain operating environments

may be unsuitable for some existing system
configurations (e.g., legacy systems)

WHAT IS DBMS?

Database management system

Purpose of DBMS is to provide controlled
access to database.
DBMS is special software programmed to
know which data elements each user is
authorized to access and deny
unauthorized requests of data.

Three Steps in Designing a Database

1.

Prepare conceptual model

Identify

entities
Identify relationships between
entities
Prepare ER diagram (ERD)

Samply Entity Relationship

Diagram

2. Specify logical design

Select

logical database model (which

will always be relational nowadays)
Transform conceptual data model using
logical database model

3. Implement physical design

Physical

structures
Access methods

What is the Logical Data

Structures?

Logical Data Structures

Objective is to develop structure
efficiently so data can be accessed
quickly and easily.
Four types of database structures are:
hierarchical (tree structure)
network
relational
object-oriented

The Relational Model

Relational model portrays data in form of

two dimensional tables (looks like
Excel worksheet)
relation - database table
attributes/fields (data elements) columns
tuples (records) - rows
data - intersection of rows and columns

Anomalies in Database

Three Types of Anomalies

(Anomalies are found in unnormalized
tables)

Insertion Anomaly: New item cannot be

added to table until at least one entity uses
particular attribute item.
Deletion Anomaly: If attribute item used by
only one entity is deleted, all information about
that attribute item is lost.
Update Anomaly: Modification on attribute
must be made in each of rows in which attribute
appears.
(Anomalies can be corrected by creating
relational tables)

How to prevent?
Through Relational Tables and
Normalization Process
Various items of interest (customers,
inventory, sales) stored in SEPARATE tables
in database.
Advantages:
Removes all three anomalies
Efficient use of space.
Flexible. Users can form ad hoc relationships
for queries.

Normalization Process
Process that breaks up large, complex
tables into smaller tables that meet two
conditions:
all nonkey attributes (fields) in table are
dependent on primary key (PK)
all nonkey attributes (fields) are independent
of other nonkey attributes (fields)

When unnormalized tables are split and

reduced to third normal form, they are
linked together by foreign keys (secondary
keys).

Steps in Normalization

First normal
form (1NF)

Second
normal
form (2NF)
Third normal
form (3NF)

Does field depend on PK? If no,

remove and put in another table.

Only concerns
tables with
composite PKs.
When field depends
on another non-key
field in table.

1.
Remove
repeating
groups
2. Remove
partial
dependencie
s
3. Remove
transitive
dependencies

Accountants and Data

Normalization
1. Update anomalies can generate
conflicting and obsolete database
values.
2. Insertion anomalies can result in
unrecorded transactions and
incomplete audit trails.
3. Deletion anomalies can cause loss of
accounting records and destruction of
audit trails.

Accountants should understand

data normalization process and
be able to determine whether
database is properly normalized.

DDP VS CDP

Distributed Data
Processing

Disadvantages

Loss of control (organization-wide)

Mismanagement of organization-wide resources
Hardware/software incompatibility
Redundant tasks/data
Incompatible tasks may be consolidated
Lack of standards

Advantages:

Cost reductions in hardware and data entry tasks

Improved cost control responsibility
Improved user satisfaction because control is closer
to user level
Backup of data can be improved through use of
multiple data storage sites

Centralized Data
Processing

Data are retained in central location.

Remote IPUs (workstations) send requests
for data.
Central site services needs of remote
workstations.
Actual data processing is performed at
remote workstation

Deadlock Phenomenon

Especially a problem with partitioned

databases
Occurs when multiple sites lock each
other out of data that they are currently
using
Special software needed to analyze and
resolve conflicts.

SAMPLE DATABASES

Enrollment System

PAYROLL SYSTEM

Accounting Department