Chapter
4
RELATIONAL
DATABASES
Relational Databases
- Underlie most modern integrated AISs.
- They are the most popular type of database used for
transaction processing.
FILE vs. DATABASES
• A set of all related records forms a file.
FILE vs. DATABASES
• A set of interrelated, centrally, coordinated files forms a
database.
Database systems were developed to address the
problems associated with the proliferation of master files.
• The database approach treats
data as an organizational
resource that should be used
by and managed for the
entire organization, not just a
particular department.
• A database management
system (DBMS) serves as the
interface between the
database and the various
application programs.
• The combination of the
database, the DBMS,
and the application
programs that access
the database is
referred to as the
database system.
• The person
responsible for the
database is the
database
administrator.
• As technology
improves, many large
companies are
developing very large
databases called data
warehouses.
IMPORTANCE AND
ADVANTAGES OF DATABASE
SYSTEMS
Database technology is everywhere.
• Most new AISs implement a database approach.
• Virtually all mainframe computer sites use database technology.
• Use of database with PCs is growing also.
As accountants, you are likely to audit or work for
companies that use database technology to store, process,
and report
• Many accountants accounting
work directly transactions.
with databases and will enter, process, and
query databases.
• Some will develop and evaluate internal controls necessary to ensure database
integrity.
• Others will be involved in the design and management of databases.
IMPORTANCE AND
ADVANTAGES OF DATABASE
SYSTEMS
Database technology provides the
following benefits to organizations:
• Data Integration
￭ Combining master files into larger pools of data accessible by many
programs.
• Data Sharing
￭ It can make the same data resources available to multiple users,
applications, and organizations.
• Reporting Flexibility
￭ Reports can be revised easily and generated as needed.
￭ The database can easily be browsed to research problems or obtain
detailed information.
IMPORTANCE AND
ADVANTAGES OF DATABASE
SYSTEMS
Database technology provides the
following benefits to organizations:
• Minimal Data Redundancy and Inconsistencies
￭ Data items are usually stored only once.
• Data Independence
￭ Makes programming easier and simplifies data management.
• Central Management of data
￭ Data management is more efficient because the database administrator
is responsible for coordinating, controlling, and managing data.
• Cross-functional analysis
￭ Relationships can be explicitly defined and used in the preparation of
management reports.
DATABASE SYSTEMS
• A database system separates how data is viewed (logical) from
how it is stored (physical).
Feature Logical View Physical View
How the user or
How and where the
Definitio programmer conceptually
data are physically
n organizes and
arranged and stored.
understands the data.
The database stores
A customer sees their
Example orders as tables with
order history
IDs
• Separating these views facilitates application development,
because programmers can focus on coding the logic and not be
concerned with storage details.
DATABASE SCHEMAS
• A database schema Scheme
Description Example
is the blueprint or
level
structure of a •The organization-wide view of the
database. Shows all entities
entire database—i.e., the big
(students, courses,
Conceptual picture.
professors) and
• A schema describes •Lists all data elements and the
their relationships
the logical structure relationships between them.
of a database
•A set of individual user views of portions of
the database, i.e., how each user sees the A professor sees
External portion of the system with which he interacts. only the students
•These individual views are referred to as in their courses.
subschema.
Specifies how
•A low-level view of the database.
records are stored
Internal It describes how the data are
on disk (indexes,
actually stored and accessed .
External
Conceptual
Internal
•Accountants are frequently involved in developing
conceptual- and external-level schema.
•An employee’s access to data should be limited to
the subschema of data that is relevant to the
performance of his job.
DATA DICTIONARY
• A key component of a DBMS is the data dictionary.
• Contains information about the structure of the database.
For each data element, there is a corresponding record in the
data dictionary describing that element
Information provided for each element includes:
• A description or explanation of the element.
• The records in which it is contained.
• Its source.
• The length and type of the field in which it is stored.
• The programs in which it is used.
• The outputs in which it is contained.
• The authorized users of the element.
• Other names for the element.
Accountants should participate in the development of the data
dictionary because they have a good understanding of the data
elements in a business organization, as well as where those
elements originate and how they are used.
•The DBMS usually maintains the data dictionary.
• It is often one of the first applications of a newly implemented
database system.
• Inputs to the dictionary include:
Records of new or deleted data elements.
Changes in names, descriptions, or uses of existing
elements.
• Outputs include:
Reports that are useful to programmers, database
designers, and IS users in:
Designing and implementing the system.
Documenting the system.
Creating an audit trail.
Database Management System
(DBMS)
Creating a Changing a Querying a
database database Database
–The set of commands used to –The set of commands used to query the
–The set of commands used to create
change the database is known database is known as data query language
the database is known as data
(DQL).DQL is used to interrogate the
definition language (DDL).DDL is as data manipulation
database, including:
used to: language (DML).DML is used
• Retrieving records
• Build the data dictionary for maintaining the data • Sorting records
• Initialize or create the database including: • Ordering records
• Describe the logical views for each • Updating data • Presenting subsets of the database
individual user or programmer • Inserting data
• Specify any limitations or • Deleting portions of the -The DQL usually contains easy-to-use,
constraints on security imposed on powerful commands that enable users to
database
database records or fields satisfy their own information needs
Report Writer
–Many DBMS packages also include a report writer, a language
that simplifies the creation of reports.
–Users typically specify:
• What elements they want printed
• How the report should be formatted
–The report writer then:
• Searches the database
• Extracts specified data
• Prints them out according to specified format
RELATIONAL DATABASES
Relational Data Model - represents everything in the
database as being stored in the forms of tables (aka, relations).
- This model only describes how the data appear in the
conceptual- and external-level schemas.
- The data are physically stored according to the
description in the internal-level schema.
RELATIONAL DATABASES
RELATIONAL DATABASES
RELATIONAL DATABASES
Alternatives for Storing Data:
- One possible alternate approach would be to store all
data in one uniform table.
- Another possible approach would be to store each
student in one row of the table and create multiple columns to
accommodate each class that he is taking.
RELATIONAL DATABASES
RELATIONAL DATABASES
Basic Requirements of a Relational
A foreign key mustDatabase:
either be null or correspond to the value of a
primary key in another table.
Referential integrity rule - this rule is necessary because
foreign keys are used to link rows in one table to rows in
another table.
All non-key attributes in a table should describe a characteristic
of the object identified by the primary key.
RELATIONAL DATABASES
Basic Ways to Design a Well-Structured Relational
Normalization - startsDatabases:
with the assumption that everything is
initially stored in one large table.
A set of rules is followed to decompose that initial table into a set
of normalized tables. Objective is to produce a set of tables in
third-normal form (3NF) because such tables are free of update,
insert, and delete anomalies.
Semantic data modeling - uses the designer’s knowledge
about business processes and practices; it therefore facilitates
efficient design of transaction processing databases.
DATABASE SYSTEMS AND THE
FUTURE OF ACCOUNTING
• Database systems may profoundly affect the
fundamental nature of accounting:
– May lead to abandonment of double-entry accounting,
because the redundancy of the double entry is not necessary in
computer data processing.
– May also alter the nature of external reporting.
EXAMPLE: External users could have access to the
company’s database and manipulate the data to
meet their own reporting needs.
DATABASE SYSTEMS AND THE
FUTURE OF ACCOUNTING
• The use of accounting information in decision making
will be enhanced by:
– Powerful querying capabilities that accompany
database packages.
– The ability to accommodate multiple views of the same
underlying phenomenon.
– The ability to integrate financial and operational data.
DATABASE SYSTEMS AND THE
FUTURE OF ACCOUNTING
• Accountants must become knowledgeable about databases
so they can participate in developing the AIS of the future.
• They must help ensure that adequate controls are included
to safeguard the data and assure its reliability.
THANKYO
U
