Management

Control System
Unit 2: Audit Under Computer
System

Defining Computers
A computer is an electronic device that:
accepts information and instructions from a
user
processes data
stores data for later retrieval
produces output

Investigating Types of Computers The

categories of computers are:
Personal computers (PCs)
Desktops
Notebooks (Laptops)
Tablet PCs
Subnotebooks (Ultraportable or Minis)
Slates
Hand-helds
Smartphone
MP3 players
Mainframes
Supercomputers

Investigating Types of Computers

Personal computers (PCs) are used for general

computing tasks, usually for home or office use.

Hand-held computers fit in the palm of your
hand and run on batteries.
Mainframes are used by larger companies to
provide centralized storage, processing, and
management for large amounts of data.
Supercomputers are the largest and fastest of
computers, and can process an enormous
volume of data.

Notebook computer
also referred to as a laptop computer
small
lightweight
portable

Smart phones
used to make and
receive phone calls
also
used
to
connect
to
the
Internet, to check
email,
and
to
maintain
an
electronic
appointment book

Supercomputers are

the largest and

fastest of
computers, and can
process an enormous
volume of data.

Examining Computer Systems

A computer system is made up of:
Hardwarethe physical components
Softwarethe programs or lists of instructions
Operating systemspecial software that
controls basic input and output

Architecture or configuration is the

design of the computer.

As in, what does the computer consist of?
Specifications are the technical details

about each component.

As in, how big is the monitor?

Data
The word data is derived from Latin language.

It is plural of Datum (But Data is usually used

as a singular term.) Datum (singular) Data
(plural). Data is any collection of facts of
figures. The data is the raw material to be
processed by a computer.

Example
Names of students, marks obtained in the

examination, designation of employees,

addresses, quantity, rate, sales figures or
anything that is input to the computer is data.
Even pictures, photographs, drawings, charts
and maps can be treated as data. Computer
processes the data and produces the output
or result.

Types of Data

Mainly Data is divided into two types:

1. Numeric Data
2. Character Data
1. Numeric Data
The data which is represented in the form of
numbers is known as Numeric Data. This
includes 0-9 digits, a decimal point (.), +, /,
sign and the letters E or D.
2. Character Data
Character data falls into two groups.
i. String Data
ii. Graphical Data

i. String Data

String data consists of the sequence of

characters. Characters may be English
alphabets, numbers or space. The space,
which separates two words, is also a
character. The string data is further
divided into two types.
a. Alphabetic Data
b. Alphanumeric Data
ii. Graphical Data
It is possible that pictures, charts and
maps can be treated as data. The
scanner is normally used to enter this
type of data. The common use of this

Information
A collection of data which conveys some meaningful idea is
information. It may provide answers to questions like who,
which,
when,
why,
what,
and
how.
or
The raw input is data and it has no significance when it
exists in that form. When data is collated or organized into
something meaningful, it gains significance. This
meaningful
organization
is
information
or
Observations and recordings are done to obtain data, while
analysis
is
done
to
obtain
information.

Data Processing
Data processing:
Any operation or set of operations performed
upon data, whether or not by automatic
means,
such
as
collection,
recording,
organization, storage, adaptation or alteration
to convert it into useful information.

Data Processing Cycle

Once data is collected, it is processed to convert it
into useful information. The data is processed
again and again until the accurate result is
achieved. This is called data processing cycle.
The data processing is very important activity and
involves very careful planning. Usually, data
processing activity involves three basic activities.
1. Input
2. Processing
3. Output

1. Input

Data Processing Cycle

Step-1

It is the process through which collected

data is transformed into a form that
computer can understand. It is very
important step because correct output result
totally depends on the input data. In input
step, following activities can be performed.
i) Verification
The collected data is verified to
determine whether it is correct as required.
For example, the collected data of all B.Sc.
students that appeared in final examination
of the university is verified. If errors occur in
collected data, data is corrected or it is
collected again.

ii) Coding
The verified data is coded or converted into
machine readable form so that it can be
processed through computer.
iii) Storing
The data is stored on the secondary storage
into a file. The stored data on the storage
media will be given to the program as input for
processing.

Data Processing Cycle

Step-2

2.Processing
The term processing denotes the actual
data manipulation techniques such as
classifying,
sorting,
calculating,
summarizing,
comparing,
etc.
that
convert
data
into
information.
i) Classification
The data is classified into different groups
and subgroups, so that each group or subgroup of data can be handled separately.
ii) Storing
The data is arranged into an order so that it

iii) Calculations
The arithmetic operations are performed on the
numeric data to get the required results. For
example, total marks of each student are
calculated.
iv) Summarizing
The data is processed to represent it in a
summarized form. It means that the summary of
data is prepared for top management. For
example, the summary of the data of student is
prepared to show the percentage of pass and fail
student examination etc.

Data Processing Cycle

Step-3

3. Output

After completing the processing step, output is

generated. The main purpose of data processing
is to get the required result. Mostly, the output is
stored on the storage media for later user. In
output step, following activities can be
performed.
i) Retrieval
Output stored on the storage media can be
retrieved at any time. For example, result of
students is prepared and stored on the disk. This
result can be retrieved when required for
different purposes.

ii) Conversion
The generated output can be converted into
different forms. For example, it can be
represented into graphical form.
iii) Communication
The generated output is sent to different
places. For example, weather forecast is
prepared and sent to different agencies and
newspapers etc. where it is required.

Types of Data Processing

Following are the commonly used methods:
1.Manual Data Processing:
2. Electronic Data Processing:
3.Real time processing
4. Batch Processing:

1.Manual Data Processing:

This method of data processing involves human
intervention. The manual process of data entry
implies many opportunities for errors, such as
delays in data capture, as every single data field
has to be keyed in manually, a high amount of
operator misprints or typos, high labor costs from
the amount of manual labor required. Manual
processing also implies higher labor expenses in
regards to spending for equipment and supplies,
rent, etc.

2. Electronic Data Processing:

EDP (electronic data processing), an infrequently

used term for what is today usually called "IS"

(information services or systems) or "MIS"
(management information services or systems),
is the processing of data by a computer and its
programs in an environment involving electronic
communication.
EDP evolved from "DP" (data processing), a term
that was created when most computing input
was physically put into the computer in punched
card form or in ATM cards form and output as
punched cards or paper reports.

3.Real time processing

In a real time processing, there is a continual input,

process and output of data. Data has to be

processed in a small stipulated time period (real
time), otherwise it will create problems for the
system.
For example, when a bank customer withdraws a
sum of money from his or her account it is vital that
the transaction be processed and the account
balance updated as soon as possible, allowing both
the bank and customer to keep track of funds.

4. Batch Processing:
In a batch processing group of transactions
collected over a period of time is collected,
entered, processed and then the batch results
are produced. Batch processing requires
separate programs for input, process and
output. It is an efficient way of processing
high
volume
of
data.
For example: Payroll system, Examination
system and

Coding of data:
Coding is translating answers into numerical

values or assigning numbers to the various

categories of a variable to be used in data
analysis. Coding is done by using a code book,
code sheet, and a computer card. Coding is
done on the basis of the instructions given in
the codebook. The code book gives a
numerical code for each variable.

Now-a-days, codes are assigned before going to

the
field
while
constructing
the
questionnaire/schedule. Pose data collection; precoded items are fed to the computer for
processing
and
analysis.
For
open-ended
questions, however, post-coding is necessary. In
such cases, all answers to open-ended questions
are placed in categories and each category is
assigned
a
code.

Manual processing is employed when qualitative

methods are used or when in quantitative studies,

a small sample is used, or when the
questionnaire/schedule has a large number of
open-ended questions, or when accessibility to
computers is difficult or inappropriate. However,
coding is done in manual processing also.

Data classification/distribution:
Sarantakos (1998: 343) defines distribution of data

as a form of classification of scores obtained for the

various categories or a particular variable. There are
four types of distributions:

1.
2.
3.
4.

Frequency distribution
Percentage distribution
Cumulative distribution
Statistical distributions

Frequency distribution:
In social science research, frequency distribution is very
common. It presents the frequency of occurrences of
certain categories. This distribution appears in two
forms:
Ungrouped: Here, the scores are not collapsed into
categories, e.g., distribution of ages of the students of a
BJ (MC) class, each age value (e.g., 18, 19, 20, and so
on) will be presented separately in the distribution.
Grouped: Here, the scores are collapsed into categories,
so that 2 or 3 scores are presented together as a group.
For example, in the above age distribution groups like
18-20, 21-22 etc., can be formed)

Percentage distribution:

It is also possible to give frequencies not in absolute numbers

but in percentages. For instance instead of saying 200
respondents of total 2000 had a monthly income of less than
Rs. 500, we can say 10% of the respondents have a monthly
income of less than Rs. 500.
Cumulative distribution:
It tells how often the value of the random variable is less
than or equal to a particular reference value.

Statistical data distribution:

In this type of data distribution, some measure of

average is found out of a sample of respondents.
Several kind of averages are available (mean,
median, mode) and the researcher must decide
which is most suitable to his purpose. Once the
average has been calculated, the question arises:
how representative a figure it is, i.e., how closely the
answers are bunched around it. Are most of them
very close to it or is there a wide range of variation?