JAIIB AFM Module-B Unit 7 : Accounting in Computerized Environment

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Sep 2

JAIIB Paper 3 AFM Module B Unit 7 : Accounting in Computerized Environment (New Syllabus)

IIBF has released the New Syllabus Exam Pattern for JAIIB Exam 2023. Following the format of the current exam, JAIIB 2023 will have now four papers. The JAIIB Paper 3 (Accounting and Financial Management for Bankers) includes an important topic called "Accounting in Computerized Environment". Every candidate who are appearing for the JAIIB Certification Examination 2023 must understand each unit included in the syllabus. In this article, we are going to cover all the necessary details of JAIIB Paper 3 (AFM) Module B (FINANCIAL STATEMENTS AND CORE BANKING SYSTEMS ) Unit 7 : Accounting in Computerized Environment Aspirants must go through this article to better understand the topic, Accounting in Computerized Environment, and practice using our Online Mock Test Series to strengthen their knowledge of Accounting in Computerized Environment. Unit 7 : Accounting in Computerized Environment

Computerised Accounting

An accounting system is one that performs the following functions:

It captures business transactions in the form of accounting entries.
The accounting entries are then used to prepare financial statements.
The financial statements are prepared based on accounting standards.
Various financial reports are prepared from the data available in the financial statements.

Features of Computerized Accounting

Speed
Accuracy
Various informative reports can be generated
Economy
A Computerised system may be a single stand Along unit or a Multiple User, ie, LAN, WAN etc.

Terms used in Computerized Accounting

Data
Record
Data file or file
System

Advantages of Computerized Accounting

Accurate, High speed and low cost or operation
Availability of various reports from the same accounting data
Error- free accounting
Automatic completion of all records by feeding only one entry into the computer
Multiple set of Printouts available

Disadvantages of Computerized Accounting

Requirement of special Programme and Professional
Qualified staff required for Operations
Costly computer peripherals and stationery
Regular back-up is required as Data may be lost for various reasons
Computer viruses

Functions performed by computerized accounting software available in the market

Tally versions such as 4, 4.5, 5, 5.4, 6.3, 7.2 and 8.2
Ex, accounting software
Bank 2000 for accounting needs for banks
B@NKS-24-core banking solution
U.D.I.T.O.R and A.U.D.I.T.I.M.E cash basis software for professionals and their accounts
MEFCOMP accounting software for professional
Quick FA

Difference Between Computerised And Manual Accounting

Basis For Comparison	Manual Accounting	Computerized Accounting
Meaning	Manual Accounting is a system of accounting that uses physical registers and account books, for keeping financial records.	Computerized Accounting is an accounting system that uses an accounting software, for recording financial transactions electronically.
Recording	Recording is possible through book of original entry.	Data content is recorded in customized database.
Calculation	All the calculation is performed manually.	Only data input is required, the calculations are performed by computer system.
Speed	Slow	Comparatively faster.
Adjusting entries	It is made for rectification of errors.	It cannot be made for rectification of errors.
Backup	Not possible	Entries of transactions can be saved and backed up
Trial Balance	Prepared when necessary.	Instant trial balance is provided on daily basis.
Financial Statement	It is prepared at the end of the period, or quarter.	It is provided at the click of button.

Core Banking Components

Core Banking is delivered as a set of integrated core banking components that are then tailored to fit the institution's individual business requirements. These components can be easily re-configured as business requirement change, protecting the orginisation's strategic investment and maintaining a unified business approach.

Core Bank components include

Core Bank financial institution infrastructure
Core Bank customer management and customer overview
Core Bank Account Administration
Core Bank Payments
Core Bank Management Information

Advantages of Core Banking

Makes the internal staff more competent.
Minimises human intervention thereby limiting errors.
Helps prevent frauds and thefts with real-time banking facilities.
Reduces operational costs.
Aids in studying changing customer demands.
Facilitates decision making through reporting and analytics.

Information Security

Information Security is basically the practice of preventing unauthorized access, use, disclosure, disruption, modification, inspection, recording or destruction of information. Information can be physical or electrical one.

Information system Security

Information systems security provides essential information for managing the security of an organization where information technology is an important factor. It is mainly for all the staff, who are the first-line support, responsible for the daily, efficient operation of security policies, procedures, standards and practices. It cover