Components of an accounting system:
1. People component.
The people needed in the accounting system include accountants, managers, database administrators, systems analysts, etc
2. Computer hardware.
These include computer monitors, hard disks, magnetic tape, processors, printers, etc
3. Computer software
Examples include operating systems, word processors, accounting packages, communication software, etc
4. Telecommunication system/communication network
5. Databases to store all the data operated upon software.
The formal operating procedures exist in physical forms as manuals or instruction booklets. Three major types of procedures that must be present are:
o User instructions – for application users to record data, to use a terminal for data entry or retrieval, or use the result
o Instructions for preparation of input data preparation personnel
o Operating instructions for computer operations personnel