ACCOUNTING IN COMPUTERISED ENVIRONMENT | JAIIB AFM STUDY MATERIAL
This page provides AFM Notes for 2023 Exams that are to be held in May. So, if you are preparing for AFM Paper, then read on & learn more about the Accounting & Financial Management for Bankers topics to clear JAIIB next year in 1 attempt!
ACCOUNTING IN COMPUTERISED ENVIRONMENT
Today, most of organizations are performing their accounting tasks on computers instead of following the traditional method of bookkeeping in hard books. So, it is safe to say that mode on the account is more computer-keeping than bookkeeping.
Following functions are performed through an accounting system:
- The system records all the business transactions in the form of accounting entries
- With the help of these accounting entries, financial statements are prepared.
- Accounting standards are used as a basis to prepare financial statements.
- There are many different other financial reports which are prepared with the use of data available in the financial statements.
Like any other computer system, a computer accounting system also runs on a set of instructions which are known as software programs. These programs are developed by a computer software professional who is known as a programmer. Instructions are in the computer language which is input into the computer program.
Although there are other computer languages that can be used to write accounting software such as Foxpro and COBOL as well as Operating Systems such as UNIX or Windows. Digital computers are computers that are used in computerized accounting.
Following are some of the main features of computerized accounting:
- Speed of recording
- Accuracy
- Various Informative Reports can be generated
- Economy in costs
- Computerized Accounting System could be a Single Stand Alone Unit or a Multiple User, i.e. LAN, WAN, etc.
AFM RELATED LINKS:-
| SYLLABUS | STUDY MATERIAL | NOTES | MOCK TESTS |
| Accounting & Financial Management for Bankers Syllabus 2023 | JAIIB AFM Study Material PDF 2023 | JAIIB AFM Notes PDF 2023 | JAIIB AFM Mock Test PDF 2023 |
DIFFERENCES BETWEEN MANUAL AND COMPUTERISED SYSTEMS
Following at the differences between traditional or manual & computerized systems of accounting:
- The data which is stored in the computer is not visible and therefore, it is difficult to establish the trail of events.
- Manipulation of accounting data can be done to generate different reports or statements.
ADVANTAGES OF COMPUTERIZED ACCOUNTING SYSTEM
The benefits of installing a computer system are given below:
- A computerized system is accurate, provides high speed of recording & has lower cost of operation.
- Different reports can be generated using the same accounting data.
- There is a reduction in the errors when accounting is done on computers
- Records are completed automatically by feeding one entry into the computer
- There are different sets of print-out formats are available.
DISADVANTAGES OF COMPUTERIZED ACCOUNTING SYSTEM
There are some disadvantages of using a computer system also which are given below:
- It requires a special program and professional knowledge to operate the system
- Operations are required to be conducted by the qualified staff
- The cost of computer peripherals and stationery is quite high
- The system requires a regular backup of data so that if it ever get lost it can be recovered.
- Computers are vulnerable to viruses
Influence of Computerisation in the functions performed by a bank: Computers have influenced many functions which are performed by the bank. Such as:
- Operations of banks
- Accounting of Banking transactions
- Acceptance of deposits
- Lending of money
- Remittances
- Clearance of cheques
- Standing instructions
- Centralised banking
- Automation of Banking services
CORE BANK COMPONENTS INCLUDE :
- Core Bank Financial Institution Infrastructure
- Core Bank Product Build
- Core Bank Customer Management and Customer Overview
- Core Bank Account Administration
- Core Bank Payments
- Core Bank Management Information
Read Also:-
| RELATED LINKS OF: | SYLLABUS |
| PPB | Principles & Practices of Banking Syllabus 2023 |
| AFM | Accounting & Financial Management for Bankers Syllabus 2023 |
INFORMATION SYSTEMS SECURITY
Information Systems Security provides essential information for managing the security of an organisation where information technology is an important factor. It is mainly for all the staff, who are the first-line support, and responsible for the daily, efficient operation of security policies, procedures, standards, and practices. It covers:
– Access control systems and methodologies
– Computer operations security
– e-mail and internet access
– Application and systems development
– Business continuity and disaster recovery planning
– Telecommunications and network security
– Physical security
– Cryptography
– Security management practices
– Law, investigations, and ethics
Internet: Internet is the inter-connection between several computers of different types belonging to various networks all over the globe.
World Wide Web (WWW): WWW is a series of servers that are interconnected through hypertext. Hypertext is a method of presenting information in which certain text is highlighted that, when selected, displays more information on the particular topic. These highlighted items are called hyperlinks and allow the users to navigate from one document to another that may be located on different servers.
