Audit System Manual graphic
[ Audit System Manual- TOC ] [ Ch 1 - Introduction ] [ Ch 2 - Preparing for an Audit ] [ Ch 3 - Conducting the Audit ] [ Ch 4 - Completing the Audit Forms and Schedules ] [ Ch 5 - Audit System Screens ] [ Ch 6 - Miscellaneous ] [ Ch 7 - USDOL - Tax Performance System ] [ Ch 8 - Computer Fundamentals & Hardware ] [ Appendix ]
[ 8.1 - Computer Hardware ] [8.2 - Computer Fundamentals ] [8.3 - Computer Terminology ]

Chapter 8:    Computer Fundamentals and Hardware


comments to: Tax Department

8.1    Computer Hardware

[ 8.1.1 - Computer Room] [ 8.1.2 - Functional Units of Data Processing] [ 8.1.3 - Types of Magnetic Media Storage] [ 8.1.4 - Memory Sticks, CD/DVD and TWC Computers]

Hardware is the term applied to the machines and equipment associated with a computer setting.

8.1.1    Computer Room

Many employers, especially large employer may have a separate location in their business, which holds computer hardware. A typical computer room may consist of:

Disk Drives = reads and writes data from/to hard or floppy disks.

Compact Disk = reads and/or writes to/from a compact optical disk.

DVD = reads and/or writes to/from a digital disk.

Tape Drives = retrieves or writes data to magnetic tape or cartridge media.

Keyboards = allows for communication with the computer.

CPU = Central Processing Unit.

Printers = display output from the computer.

A small employer may have a personal computer system, which incorporates all of these hardware items, and fits within a small location in their business.

8.1.2    Functional Units of Data Processing

[ 8.1.2.1 - Control Unit or CPU] [ 8.1.2.2 - Input/Output Devices]

There are four units of data processing.

8.1.2.1    Control Unit or CPU

The control unit directs and coordinates all the operations of the computer system.

  1. Retrieves instructions from the stored software programs, and interprets them.
  2. Generates signals and commands that cause data to be processed.
  3. Controls other operations.

8.1.2.2    Input/Output Devices

Data processing systems require devices that introduce data into the computer system, and devices that accept data after it has been processed. Input/Output devices linked to the system perform these functions.

The input devices convert human understood information to information that can be read by a computer.

The output devices convert computer data to human understood data.

8.1.3    Types of Magnetic Media Storage

[ 8.1.3.1 - Primary Storage (Internal Storage)] [ 8.1.3.2 - Secondary Storage (Auxiliary Storage)]


This section discusses the various storage areas available to maintain magnetic media data.

8.1.3.1    Primary Storage (Internal Storage)

Primary storage (internal storage) is an electronic filing cabinet, and each location is capable of holding data or information. This type of storage permits rapid storing and retrieval of programs and data. Large amounts of internal storage are desirable.

During normal operations this unit contains:

8.1.3.2    Secondary Storage (Auxiliary Storage)

Secondary storage (auxiliary storage) is for programs and data not currently in use.

Types of Auxiliary Storage

  1. Direct access storage may be on disk or platters. Files that need to be updated right away are kept in direct access storage.

  2. Sequential storage may be on magnetic media. Data is updated sequentially and usually is done by batch processing. In this process, data is accumulated and processed at one time. Sequential processing is the most common method of processing payroll transactions. Records are sorted in some sequence, such as alphabetically or numerically.

  3. Index sequential files are where programs and data are maintained on disk with information on sequential storage.

  4. Virtual storage is a storage technique by which a program being run has addresses within the program to locate information on auxiliary storage as well as on main storage.

8.1.4    Memory Sticks, CD/DVD and TWC Computers

If an employer, selected for an audit states they are completely paperless and offers all required documents via a memory stick, CD, DVD, or other device the auditor can accept this information, without violating Agency policy.

Agency owned computers are equipped with anti-virus software that will auto scan the data for any problems. Should the anti-virus software display an error message the employer provided device will be immediately removed and returned to the employer along with a request for another copy without problems.


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Texas Workforce Commission  |  Unemployment Tax

Last Revision: May 05, 2011