Terms in this set (20)

Databases provide organizations with the following benefits:
Data integration. Master files are combined into large "pools" of data that many application programs access. An example is an employee database that consolidates payroll, personnel, and job skills master files
Data sharing. Integrated data are more easily shared with authorized users. Databases are easily browsed to research a problem or obtain detailed information underlying a report. The FBI, which does a good job of collecting data but a poor job of sharing it, is spending 8 years and $400 million to integrate data from their different systems
Minimal data redundancy. Because data items are usually stored only once, data redundancy and data inconsistencies are minimized
Data independence. Because data and the programs that use them are independent of each other, each can be changed without changing the other. This facilitates programming and simplifies data management
Cross-functional analysis. In a database system, relationship, such as the association between selling costs and promotional campaigns, can be explicitly defined and used in the preparation of management reports

The Importance of Good Data: Incorrect database data can lead to bad decisions, embarrassment, and angry users...The Data Warehousing Institute estimates that bad data cost businesses over $600 billion a year in unnecessary postage, marketing costs, and lost customer credibility. It is estimated that over 25% of business data is inaccurate or incomplete...managing data gets harder every year. The quantity of data generated and stored doubles every 18 months. To avoid outdate, incomplete, or erroneous data, management needs policies that ensure clean, or scrubbed, data...The Sarbanes-Oxley Act (SOX) states that top executives face prosecution and jail time if a company's financial data are not in order...
Basic Requirements of a Relational Database
Every column in a row must be single valued. In a relational database, there can not be more than one value per cell
Primary keys cannot be null. A primary key cannot uniquely identify a row in a table if it is null (blank). A nonnull primary key ensures that every row in a table represents something and that it can be identified. This is referred to as the entity integrity rule.
Foreign keys, if not null, must have values that correspond to the value of a primary key in another table. Foreign keys link rows in one table to rows in another table...This constraint called the referential integrity rule, ensures database consistency. Foreign keys can contain null values
All nonkey attributes in a table must describe a characteristic of the object identified by the primary key. Most tables contain other attributes in addition to primary and foreign keys.
Entity Integrity Rule: A nonnull primary key ensures that every row in a table represents something and that it can be identified
Referential Integrity Rule: Foreign keys which link rows in one table to rows in another table must have values that correspond to the value of a primary key in another table
Relational Database Design Rules
-Every column in a row must be single valued
-Primary key cannot be null (empty) also known as entity integrity
-IF a foreign key is not null, it must have a value that corresponds to the value of a primary key in another table (referential integrity)
-All other attributes in the table must describe characteristics of the object identified by the primary key
Following these rules allows databases to be normalized and solves the update, insert, and delete anomalies
Have the potential to alter external reporting significantly...considerable time and effort are currently invested in defining how companies should summarize and report accounting information to external users...In the future, companies may make a copy of the company's financial database available to external users in lieu of the traditional financial statements...Users would be free to analyze the raw data however they see fit...A significant advantage of database systems is the ability to create ad hoc queries to provide the information needed for decision making. No longer is financial information available only in predefined formats and at specified times. Instead, powerful and easy-to-use relational database query languages can find and prepare the information management needs whenever they want it...Relational DBMSs can also accommodate multiple views of the same underlying phenomenon. For example, tables storing information about assets can include historical costs as well as current replacement costs and market values. Thus, managers will no longer be forced to look at data in ways predefined by accountants...relational DBMSs are capable of integrating financial and operational data...for example, customer satisfaction data can be stored in the database, giving managers a richer set of data for decision making...Relational DBMSs have the potential to increase the use and value of accounting information. Accountants must understand the database systems so hey can help design and use the AISs of the future. Such participation is important for ensuring that adequate controls are included in those systems to safeguard the data and ensure the reliability of the information produced
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