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
information systems to perform their daily tasks.
Stakeholders
Individuals or groups with a vested interest in the
outcome of the systems development process.
• Refers to a structured process used to develop,
implement, and maintain information systems within an
organization.
• Provides a systematic approach to managing the
development process, from initial concept to deployment
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.