Castillo, Randolph S.

Discussion Questions

1,Explain how a hashing structure works and why it is quicker than using an index. Give an example.

If it is so much faster, why isn’t it used exclusively?

A hashing structure commonly works by taking a key worth and utilizing it to separate an indivisible

number. The outcome is an extraordinary number practically constantly if enough decimal spots are

utilized. The subsequent numbers are utilized to track down the extraordinary area of the record.

Figuring a record's location is quicker than looking for it through a list. It isn't utilized solely on the

grounds that it doesn't utilize the capacity plate proficiently. Some circle areas won't ever be chosen in

light of the fact that they don't compare to authentic key qualities. Likewise, unique record keys may at

times mean a similar location and information impact could happen. Utilizing pointers is a path around

this be that as it may, the extra pointers hinder the framework.

2.Explain how an embedded audit module works and why auditors may choose not to use it

EAM techniques utilize at least one uniquely modified modules inserted in a have application to

choose and record foreordained kinds of exchanges for ensuing examination. This technique permits

material exchanges to be caught all through the review period. It may not be utilized on the grounds

that it isn't operationally productive, and it could be hard to use in frameworks that go through a

decent arrangement of upkeep.

3.Explain the term navigational data models. Contrast the hierarchical model and the network model.

Data elements in navigational data models have clear relationships or paths between them. Only

pointers along the navigational path to the target records can be used to access data at a lower level.

No member (child) record can have more than one owner (parent) record in the hierarchical

architecture. Because businesses frequently need to view data relations with several entities, this

drastically limits the model's utility.The network approach, on the other hand, allows for numerous

owners of a member (child) record (parents). Only one to many relationships are allowed in the simple

network model, while many to many relationships are allowed in the complex network model.

4.Explain the three types of anomalies associated with database tables that have not been

normalized.

1.Update anomaly- result of data redundancy-If a data element is kept in multiple locations, it must be

updated in each of them. If this does not occur, the results will be inconclusive.
2.Insertion anomaly- when too much data are stored together.when vendor data is only recorded with

specified inventory items A vendor cannot be added to the database until things are purchased from

them.

3. Deletion anomaly- occurs when you delete a necessary record that shouldn't be deleted.—if a

vendor only provides one item and the firm discontinues that item, the seller's information is gone.

5.Contrast embedded audit modules with generalized audit software

Embedded audit modules are used to extract data from specific apps while they are performing

transactions in real time. When an application is designed, EAMs are encoded into it. In terms of what

data the auditor can request, EAMs are fairly structured. GAS packages (generalized audit software)

are designed to obtain data from files after they have been processed.They can extract data from any

system's files and don't require any programming. They have a lot of flexibility when it comes to

accessing, manipulating, and reporting data to the auditor.

6.. Describe a specific accounting application that could make use of an VSAM file.

For very big files with less direct access to individual records, VSAM structures are utilized. A section

of the file, on the other hand, must be processed in batch mode on a regular basis. A public utility

billing system is an example of a VSAM application.When huge numbers of records (but only 5% of

the file) need to be processed each billing day (20 times a month), the majority of the file processing is

done in batch mode. Legacy systems are related with VSAM files. New systems can make better use

of modern database technology while they are still in use and maintained.

7, . Explain why auditors should be familiar with the principle of data normalization.

Database normalization is a technical issue that is normally handled by systems administrators. The

problem, however, has ramifications for internal control, making it a worry for auditors as well.

8.How is a user view different from a database table?

User views are database tables that have been derived. A single table can provide data to a variety of

views. Simple views, on the other hand, can be built using a single table.

9.Explain what the term third normal form (3NF) means

The table is in third normal form when the main key defines all of the table's data characteristics and

is independent of the other (nonkey) properties (3NF). The table is free of the following structural

dependencies in third normal form: repeated groups, partial dependencies, and transitive

dependencies.
10. Why is a separate link table required when an M:M association exits between related tables?

Because both tables are on the "many" side, neither can donate an embedded key to the other. As a

result, the only option is to construct a new link table that contains the key fields from both tables.

11. In a relational database environment, certain accounting records (for example, journals,

subsidiary ledgers, and event general ledger accounts) may not exist. How is this possible?

Transaction-based rather than account-based database accounting solutions are used. The emphasis

is on capturing significant transaction data that may be lost if forced into the structure of typical

accounting records. Traditional accounting records, such as Accounts Receivable and Accounts

Payable, will be reconstructed using the transaction tables.

12. Explain how to link tables in a 1:1 association. Why may this be different in a 1:0,1 association?

When two tables have a true 1:1 relationship, either (or both) primary keys can be used as foreign

keys in the linked table. When the lower cardinality value is zero (1:0,1), a more efficient table

structure can be accomplished by placing the primary key of the 1side (1:) table as a foreign key in

the zeroorone (:0,1) table.Assume a corporation employs 1000 people, but only 100 of them work in

sales. Assume that each salesperson is provided with a business vehicle. As a result, each

occurrence in the Employee entity corresponds to one or zero occurrences in the Company Car entity.

If we use the Company Car (:0,1) side primary as a foreign key in the Employee (:1) table, most of the

foreign keys will be null (blank). While this method might work, it could pose some technical issues

when searching for tables. When the key assignment rule is correctly applied, this problem is solved

because all Company Car records will have an employee assigned to them, and no null values will

exist.

13. Discuss the accounting implications of the update, insertion, and deletion anomalies associated

with improperly normalized tables.

The insertion and update anomalies would cause the company to have record-keeping and

operational issues. However, a database design issue that blocks record insertion or forces the user

to do unnecessary updates would immediately draw attention. The deletion anomaly is less obvious,

but it is possibly more significant from an accounting standpoint.

14. Give three examples that illustrate how cardinality reflects an organization’s underlying business

rules.
The structure of the database tables is directly influenced by the business rules of the organization.

The database's designers must grasp the organization's business principles as well as the special

demands of individual users if the database is to perform successfully.

1. The cardinality between the Supplier and Inventory tables is M:M when an organization wishes to

purchase the same inventory items from different suppliers.

2. When a corporation buys all of the same type of item from a single supplier, the cardinality of the

Supplier and Inventory tables is 1:M.

3. If a policy is in place that requires a distinct receiving report for the receipt of products indicated on

a single purchase order, the receiving report and purchase order tables will have a 1:1 cardinality. If,

on the other hand, numerous purchase orders are consolidated on a single receiving report, the

cardinality of these tables will be 1: M.

15. Explain the following three types of pointers: physical address pointer, relative address pointer,

and logical key pointer.

1. Physical address pointer- This physical address enables the system to access the record

without the need for further information. This method is faster since it does not require any

additional manipulation to discover the location of a record.

2. Relative address pointer- contains a record's relative location in the file. The pointer may, for

example, specify the file's 120th record. To transform it to a physical address, it must be

further altered. The physical address of the file's beginning, the length of each record in the

file, and the relative address of the record being sought are all used by the conversion

program to determine this.

3. Logical key pointer- The main key of the associated record is stored here. A hashing

algorithm converts this key value into the physical address of the record.

16.The main key of the associated record is stored here. A hashing algorithm converts this key value

into the physical address of the record.

The popularity of GAS can be attributed to four factors: (a) GAS languages are simple to use

and need minimal computer knowledge on the part of the auditor; (b) many GAS products can be

used on both mainframe and PC systems; (c) auditors may execute their tests independently of the

client's computer service employees; and (d) GAS can be used to audit data stored in a variety of file

structures and formats.

When dealing with complex file structures, the auditor may need to rely on computer services

employees to create a flat file. The processes employed to build the flat file have the potential to

undermine data integrity.If the auditor's goal is to confirm accounts receivable, for example, certain

false accounts in the complicated structure may be left out of the flatfile copy prepared. As a result,

the confirmation sample drawn from the flat file may be unreliable. Auditors who are familiar with

programming languages may be able to escape this trap by writing their own data extraction routines.

MCQ

1.A

2.D

3.B

4.C

5.A

6.C

7.A

8.C

9.A

10.A

11.D

12.B

13.D

14.C

15.C
16.D

17.A

18.A

19.C

20.B

21.D

22.D

23.D

24.C

25.D

26.C