GEN COMBO LL PRINCIPLES OF AUDITING & OTHER ASSURANCE SERVICES; CONNECT AC
GEN COMBO LL PRINCIPLES OF AUDITING & OTHER ASSURANCE SERVICES; CONNECT AC
21st Edition
ISBN: 9781260427202
Author: Ray Whittington, Kurt Pany
Publisher: McGraw-Hill Education
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Chapter 8, Problem 1RQ

List and describe the major components of an information system.

Expert Solution & Answer
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Define the major components of an information system.

Explanation of Solution

Information system:

Information technology is a system of a large set of hardware and software needed to manage and control the information of an organization. When the information technology performs a specific organization process then it is known as an information system.

Define the major components of an information system:

Following are the major components of an information system:

  • Hardware: Physical equipment required for the input, output and the storage of the data are known as hardware.

Example: Computer, Scanner, Monitor etc.

  • Software: Computer programs needed for providing the command to the computer system is known as software. There are two types of software: operating software and application software. Operating software controls and command to the whole information system and the application software performs a specific process.

Example: Windows is an operating software and tally is application software.

  • Data: The information provided as an input and collected as output in the information system is known as data.

    Example: Sales transaction recorded in the system is input data.

  • People: Human resources required for running and managing the information system are known as people.

    Example: Accountant managing the tally software.

  • Procedure: It is the norms and policies of the company for storing and processing of data in the information system.

Example: Company policy states that the bills will be recorded on the priority basis of the highest amount.

  • Network:  It is the system of communicating the data from one unit of the organization to another unit.

Example: network communicating the information to the branches to the head office of the organization.

Thus, hardware, software, data, procedure and network are the components of an information system.

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