Chapter 14 Lecture Packet
Databases
(Chapter 7 in the 13th edition)
Ch 14: Section 14.2 – An Overview of Databases
What is a database?
• A database is (1) a collection of organized data that (2) multiple users often access and that (3)
enable accounting systems to store data
o Benefit to a database: all files are interrelated, centrally coordinated and stored with as (4)
little data redundancy as possible → VERACITY! – the extent to which data can be trusted for
insights → reducing data redundancy increases data veracity!
Database Management System (DBMS) =/= database itself
• Specialized software package that manipulates the data in databases
Relational database → see discussion of foreign key
• Group of related, two-dimensional tables
The Data Hierarchy → refers to database and its components
• Database [ex: multiple spreadsheets linked together]
• File [ex: each individual spreadsheet]
• Record [ex: unique row and/or observation – transactions, customers, etc.]
• Data Field [ex: cell (for one record) / combination of cells across a column (for all records) – Data
Fields]
Master file
• Files that typically store permanent information
Transaction file
• Files that typically store information about business activities (transactions)
•
Primary key
• Data field in each record that uniquely distinguishes one record from another in a database table
• Required for every record in a database
• NOTE: Often the primary key will be a number
o EX: Customer File → CUSTOMER NUMBER
o EX: Sales File → SALES INVOICE NUMBER / TRANSACTION NUMBER
o EX: Inventory File → INVENTORY ITEM NUMBER
Foreign key
• Data field in a table that is also a primary key in another table, used to link both tables
o Refer to below example of linked Customer and Sales File
o Foreign key criteria:
▪ 1. Must be in all linked files/tables
▪ 2. Must be primary key in one of the linked files/tables
▪ 3. What is reasonable? → For example, it does not make sense to include transaction
number in the customer file because this data field does not tell you anything about
each customer AND there are multiple transaction numbers possible (and likely) for
each customer, making mapping difficult → whereas in the sales file it does make
sense to include customer number because this data field is meaningful (so that you
know which customer you sold to in each transaction)
Example: The two files (i.e., tables) below are both linked together in a relational database.
CUSTOMER FILE
Field 1 – Customer Number – PRIMARY KEY
Field 2 – Customer Name
Field 3 – Address
Field 4+ - Other Data/Information re: Customers
SALES FILE
Field 1 – Sales Invoice/Transaction Number – PRIMARY KEY
Field 2 – Customer Number – FOREIGN KEY
Field 3 – Product sold
Field 4 – Date sold
Field 5 – Other Data/Information re: Sales Transactions
Referential integrity rule → applies to relational databases
• The rule that a foreign key in one table always must match the primary key of the related table
o EX: You CANNOT have a situation such as:
▪ Customer Number is the primary key in Customer File/Table
▪ Sales Transaction Number is the primary key in Transaction File/Table
▪ Customer Number (in Transaction File) is the foreign key of the relational database
▪ Specific example: If we try to enter in Customer Number 9001 in Transaction File;
however, there is no Customer Number 9001 in Customer File (9001 is a typo for
9010). If referential integrity rule applies, this input is rejected! → like in Excel, Data
Validation (List)
• If referential integrity rule does NOT apply, this input is allowed, but this
means that you have a customer number (9001) in transaction file that does
not exist in the customer file. This is an example of bad data (i.e., low veracity)
Data dictionary
• Describes the data fields in a specific type of database record
Metadata
• Data about other data
Database Controls – categories for different types of internal controls (context specific to databases)
• Data integrity –> keep data clean → EX: edit tests (Ch. 7); data validation in Excel
• Authenticity –> restrict access to authorized users → EX: passwords, dual-factor authentication
(DFA)
• Transaction –> processing data re: transactions → EX: any controls that assist with JEs, F/S
• Concurrency –> multiple users in the file simultaneously → EX: Excel conflicting changes
• Lockout –> restrictions for when/how multiple users cannot access the file simultaneously → EX:
only X amount of users can access at same time; users can access only during work hours
• View –> setting restrictions for what each user can see → EX: any controls that restrict what is seen
