Question

Question 2

Required

Discuss generally why accountants need to understand data representation, basic data structures and coding schemes.  

Answer 1

• Database technology does permit abandonment of double entry, but there will likely be great resistance to such a radical change. Thus, students choosing this option need to present reasons why they think such a radical change would succeed.There is a good possibility that double entry will remain, even in databases, due to inertia. Indeed, many modern AIS, such as ERP systems, use databases but also retain the principles of double entry.The use of a schema for accountants seems quite plausible. It does eliminate the redundancy of double entry from the database system, yet it still provides a framework familiar and useful to accountants and financial analysts.
• Information about the attributes of a customer, such as name and address, are stored in fields. Fields contain data about one entity (e.g., one customer). Multiple fields form a record. A set of related records, such as all customer records, forms a file (e.g., the customer file). A set of interrelated, centrally coordinated files forms a database.

• Databases are possible because of their database management system (DBMS). The DBMS is a software program that sits between the actual data stored in the system and the application programs that use the data. This allows users to separate the way they view the data (called the logical view) from the way the data is actually stored (the physical view). The DBMS interprets the users' requests and retrieves, manipulates, or stores the data as needed. The two distinct views separate the applications from the physical information, providing increased flexibility in applications, improved data security, and ease of use.In a database system, the manager will rarely need to understand or be familiar with the physical view of the data. Nor, in most instances, will the internal auditor and the programmer as most everything they do involves the logical view of the data. If accountants understand logical data structures and the logical view of the data, they are better able to manage, use, and audit a database and its data.

• A major difference between spreadsheets and databases is that spreadsheets are designed primarily to handle numeric data, whereas databases can handle both text and numbers. Consequently, the query and sorting capabilities of spreadsheets are much more limited than what can be accomplished with a DBMS that has a good query language. Accountants’ familiarity with spreadsheets might hinder their ability to design and use relational DBMS because many links in spreadsheets are pre-programmed and designed in, whereas a well-designed relational database is designed to facilitate ad-hoc queries

• This changing environment has rekindled the belief that accounting students could benefit by learning to code in one or more programming languages. The theory? Coding, in essence, is logic. It teaches students how to do things in sequence and create a clear yet creative road map for organizing and problem-solving—skills that will give them a leg up in the logical world of accounting.The logic behind coding, some faculty members say, translates beautifully into the detailed and complex world of accounting. “The thing with coding is it generates systematic thinking about problems and data in a way that nothing else can,” said Roger Debreceny, Ph.D., Distinguished Professor of Accounting at the University of Hawaii at Manoa. “I do not see that structured approach to thinking about data and problems in our current generation of students.”KPMG LLP seeks out dual majors in accounting and technology when recruiting for several of its advisory services groups, said Annie Schmal, associate director of the firm’s on-campus recruiting team. One of those groups focuses largely on post-merger accounting work because complex databases are required. In this area, CPAs need to be highly technical, with skills in Visual Basic programming. For its forensic technology practice, KPMG also looks for candidates who have Visual Basic programming, as well as .net programming and SQL skills

• Some students are already aware of the value of combining technological proficiency and accounting knowledge. Tennyson DeMarco, an undergraduate at West Virginia University, said that having basic knowledge of enterprise systems, databases, and coding has given her a clearer picture of how technology can complement accounting. It has also made her a more logical thinker.“Coding is very picky, very particular,” she said. “You have to do it in a certain order and have to know the logic behind it, so it’s a good way to think out of the box and think logically.” DeMarco, who has a double major in accounting and management information systems, hopes to work in IT auditing after graduation.

• The following tips can help faculty members who believe coding is important for their students’ success:

• Suggest accounting students take a programming class or, if possible, consider a dual major in MIS and accounting. This combination will be attractive to the students’ future employers.
• Encourage students to take free coding courses online. Many sites offer free coding courses for cash-strapped students. These include code.org, codeacademy.com, and khanacademy.org/computing/computer-programming.
• Encourage students to practice coding on their own or develop coding or database-building skills, Wood said.
• Teach students that knowing Microsoft Word and PowerPoint is no longer enough. Students need to understand computers and be willing to learn about computer technology beyond the basics.
• Finally, push students to work hard continuously and to show patience. Challenging oneself, whether learning to code or acquiring any other skill set, is key to learning and growing. As Debreceny said, “If you think you can go to a gym in a week and get nice abs, it is never going to work..
• So, the accountants need to understand and implement data representation and coding schemes in their daily work.
• Thank you.