Lecture 5

Database Systems
(Chapter 4)

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 Subject Learning Outcome
 CLO1 - Discuss the application of various technologies in
accounting information systems
 CLO2 - Apply a payroll software package to record
business transactions.

 CLO3 - Discuss the different approaches for data storage,

transaction processing and database systems.

 CLO4 - Analyse internal control techniques in computer

fraud and various business cycles.

2
Coverage
 Flat File versus Database
 Advantages & Disadvantages
 Relational Database
 Six stages of database design
 Role of the accountant

3
Introduction
 For many years, companies created new
files and programs each time an
information need arose.
 This proliferation of master files created
problems:
1 Often the same data was stored in two or
more separate files.
2 The specific data values stored in the
different files was not always consistent.
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How data are stored
Two methods

The Flat File/

The Database approach
File Oriented approach

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File-Oriented/Flat File
Approach to Data Storage

 In the file-oriented(flat file) approach to

data storage computer applications
maintain their own set of files
 This traditional approach focuses
on individual applications, each
of which have a limited number
of users, who view the data as
being “owned” by them
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File-Oriented/Flat File
Approach to Data Storage

 Different users maintain their own data

and use different application programs.
 A significant increase in number of
master files stored in an organization.

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File-Oriented or Flat File Approach
File # 1
Item A Application
Item B program #1
Item C

File # 2
Item B Application
Item D program #2
Item E

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 Deficiencies of the File-Oriented
Approach
 Files and data elements used in more than one application
must be duplicated, which results in data redundancy.
 As a result of redundancy, the characteristics of data elements
and their values are likely to be inconsistent.
 Outputs usually consist of preprogrammed reports instead of
ad-hoc queries provided upon request. This results in
inaccessibility of data.
 Changes to current file-oriented applications cannot be made
easily, nor can new developments be quickly realized, which
results in inflexibility.
 It is difficult to represent complex objects using file processing
systems.
 Lack of data integration and lack of data sharing.

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Databases
 Database management system (DBMS) is
the program that manages and controls
access to the data base.
 Database system is the combination of the
data base, the DBMS, and the application
program that uses the data base.
 Database administrator (DBA) is the
person responsible for the data base.

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Databases
 The database approach views data as an
organizational resource that should be used
by, and managed for, the entire organization,
not just the originating department or
function.
 Its focus is data integration and data sharing.
 Integration is achieved by combining master
files into larger pools of data that can be
accessed by many application programs.

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 Database Approach
Application
Data base
program #1

Item A Data base

Item B Application
management program #2
Item C system
Item D
Item E Application
program #3

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Advantages of Database
Approach
 Refer your text book page 113

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 Other Advantages of Database
Approach
 Efficient use of computerized storage space.
 Each subsystem has access to the other’s information.
 All application programs utilize the same
computer file, thereby simplifying operations.
 Fewer backup files for security purposes.
 Relieves some users from data-gathering responsibilities
in situations where these users previously gathered
their own data.

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 Disadvantages of the Database
Approach
 Look it up – do your research.

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Relational Databases
 A data model is an abstract representation
of the contents of a data base.
 The relational data model represents
everything in the database as being stored
in the form of tables.
 Technically, these tables are called
relations.

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Eg - Relational Data Model

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Relational Data Bases
 Each row in a relation, called a tuple,
contains data about a specific occurrence
of the type of entity represented by that
table.
 Each column is called attribute.

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Basic Requirements of the
Relational Data Model
1 Primary keys must be unique. An attribute or
combination of attributes that can be used to
uniquely identify a specific row (record) in a
table.
2 Every foreign key is an attribute in one table
that is a primary key in another table.
3 Each column in a table must describe a
characteristic of the object identified by the
primary key.

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Basic Requirements of the
Relational Data Model
4 Each column in a row must be single-
valued.
5 The value in every row of a specific
column must be of the same data type.
6 Neither column order nor row order is
significant.

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Normalizing Relational Databases
 Initially, one table is used for all the data in
a database.
 Following rules, the table is decomposed
into multiple tables related by:
◦ Primary key–foreign key integration
 Decomposed set of tables are in third
normal form (3NF).

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Functions of a Database
Administrator /Database Design
Six stages of database design and operation
Operation and
Planning - Feasibility
maintenance

Requirements Implementation –
Analysis – Info needs Test & Use

Design- Conceptual, Coding –

Logical & physical design Create Tables

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Planning
 The first stage consists of initial planning
to determine the need for and feasibility
of developing a new database system.
 The objective is to determine whether
the proposed system is technologically
and economically feasible.

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Requirements Analysis
 Requirement analysis involves identifying
user information needs,
– defining the scope of the proposed
database system, and
– determining preliminary hardware and
software requirements.

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Design
 The third stage of the database design process
is when the structure of the database is
actually developed.
 There are three steps to the design stage:
1 Conceptual design
2 Logical design
3 Physical design

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Coding
 The fourth stage of the database design
process consists of translating the physical
schema into actual database structure
(e.g. tables) that will be in the final system.

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Implementation
 Implementation consists of all the
activities associated with getting the new
database system working.
– testing the new system
– transferring data from existing files to the
new data base
– training employees on how to use the
new system

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Operation and Maintenance
 The final stage of the database design
process includes all the activities
associated with running and maintaining
the new system.
– monitoring of system performance
– monitoring user satisfaction with the new
system

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Role of the Accountant
 How can accountants be involved in all
stages of the database design process?
 In the planning stage, accountants both
provide some of the information used to
evaluate the feasibility of the proposed
project and participate in making that
decision.

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Role of the Accountant
 In the requirements analysis and design
stages, accountants participate in
identifying user information needs,
developing the logical schemas and
designing the data dictionary, and
specifying controls.
 Accountants with good AIS skills may
participate in the coding stage.

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Role of the Accountant
 During the implementation stage,
accountants are involved in testing the
accuracy of the new database and the
application programs that will use that
data.
 Finally, accountants use the database
system to process transactions.

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End of Lecture 5

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