CAT / FIA FBT Syllabus C. Accounting And Reporting Systems, Controls - Computers & IT Software Applications - Notes ^{7 / 7}

“A spreadsheet is essentially an electronic piece of paper divided into rows and columns with a built in pencil, eraser and calculator. It provides an easy way of performing numerical calculations”
Spreadsheets have many uses within the business arena.
From creating balance sheets, income statements, financial accounts etc but also help develop an informed and structured decision.

A database has many uses and consists of “pooled” data available to not only the accounts department but usually the whole organisations.

There are three main virtues of a database:
1. Common data for all users
2. That extra effort is required in different departments to avoid duplication
3. Conflicts between departments who have conflicting data are avoided
A database should have 4 main objectives:
1. Shared information. Different users within different departments should be able to access the same information
2. The integrity of the database must be preserved.
3. The database should meet the requirements of all users
4. The database should be capable of evolving

manual system
advantages	disadvantages
low capital costs	slower at performing calculations
no computer experience required	more likely to make calculations errors
easy to correct errors (whitening fluid)	analysis of information is more time-consuming
can review transactions for logical sense while entering/performing calculations	less easy to audit

automated system
advantages	disadvantages
quicker	capital cost
can perform more complex calculations	training cost, especially for older staff
fewer errors	less easy to correct errors
more security (passwords)	systems can crash
easier to sort and analyse data