AIS_CHAPTER 13 ( Systems Development & Program Change Activities )
13.1 THE SYSTEMS DEVELOPMENT ADVANTAGES
- shorter implementation times PROCESS - cost-effective - enhanced reliability SIGNIFICANCE OF SDLC TO ACCOUNTANTS DISADVANTAGES FINANCIAL TRANSACTIONS INVOLVED - vendor dependence Creating an organization-wide information system - need for customized systems involves complex financial transactions that need careful - additional maintenance costs planning, authorization, scheduling, accounting, & control. 13.5 THE SYSTEMS DEVELOPMENT LIFE QUALITY OF AIS CYCLE The quality of financial data and its reporting in financial statements is directly linked to the quality of the AIS developed through the systems development process.
13.2PARTICIPANTS IN SYSTEMS DEVELOPMENT
Systems Professionals Individuals with expertise in designing, developing, and maintaining information systems.
End Users Systems Development Life Cycle
Individuals or departments who directly interact with the • Refers to a structured process used to develop, information systems to perform their daily tasks. implement, and maintain information systems within an organization. Stakeholders • Provides a systematic approach to managing the Individuals or groups with a vested interest in the development process, from initial concept to deployment outcome of the systems development process. and ongoing support.
13.4 INFORMATION SYSTEMS 1. System Planning
• To define the scope, goals, and objectives of the ACQUISITION proposed system. • Involves identifying the need for a new system or In-House Development changes to an existing one, assessing feasibility, and - Refers to the process of developing information establishing a high-level plan for development. systems internally within the organization. - Involves assembling a team of developers, 2. Systems Analysis analysts, and project managers to design and • To gather detailed information about the current system build custom software tailored to the and user requirements for the new system. organization's specific needs. • Focuses on understanding the existing business processes, identifying user needs and expectations, and Commercial Systems documenting system requirements. - Refers to the acquisition of prepackaged software solutions from external vendors. 3. Conceptual Systems Design - Commercial software packages are divided into • To develop a conceptual blueprint for the new system three (3) basic groups: based on the requirements identified in the analysis • Turnkey Systems phase. • Backbone Systems • Vendor-Supported Systems AIS_CHAPTER 13 ( Systems Development & Program Change Activities )
• Involves designing the overall system architecture, VERIFY CONTROL ADEQUACY
defining data structures, and establishing the system's Accountants verify that the controls in the developed functionality. applications comply with Statement on Auditing Standards No. 109 (Understanding the Entity and Its 4. Systems Evaluation & Selection Environment and Assessing the Risks of Material • To evaluate and select the most suitable solution for Misstatement). meeting the organization's needs. • Involves assessing different options, such as in-house development, commercial off the-shelf (COTS) solutions, or outsourcing.
5. Detailed Design • To develop detailed specifications for the system based on the conceptual design. • Involves translating the high level design into detailed technical specifications, such as data models, interface designs, and process flows.
6. Application Programming & Testing
• To build and test the system components according to the detailed design specifications. • Involves coding the software, integrating system components, and conducting various tests to ensure functionality, reliability, and performance.
7. System Implementation • To deploy the system into the production environment and transition users to the new system. • Involves installing hardware and software, configuring the system, training users, and migrating data from legacy systems.
8. Systems Maintenance • To ensure the continued functionality, performance, and relevance of the system over time. • Involves ongoing activities to support and maintain the system after it has been implemented.
13.6 THE ROLE OF ACCOUNTANTS IN
SDLC
PROVIDE TECHNICAL EXPERTISE
Accountants ensure that the detailed design specifications of financial systems comply with GAAP, GAAS, SEC regulations, and IRS codes.
SPECIFY DOCUMENTATION STANDARDS
Accountants help specify and enforce documentation standards for financial systems.
