Transcript GROUP 3 - Doomby

QUESTION THREE
 QUESTION: WITH AN AID OF A DIAGRAM
EXPLAIN THE SYSTEM DEVELOPMENT LIFE
CYCLE AND THE ROLE OF ACCOUNTANT IN
EACH STAGE (20)MARKS
INTRODUCTION
 Every business organisation has got its own accounting system and this
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system follow a distinct pattern known as the System Development Life
Cycle.
This is a process of developing information systems through
investigation, analysis, design, implementation and maintenance.
The (SDLC) is also known as Information systems development or
Application development.
Due to changes in the environment such as a) technology
b)structure
c) changes in the size the
organisation .
Hence the need to develop the system to suit the new changes. The
SDLC model can be understood as comprising five stages which are
Stage one: System Planning
 Takes place within the system master plan.
 This is a plan that co-ordinates the development of
the project and the company long term range plan.
 Employ staff in the strategic plan that assist top
management in a) identification of new markets,
b) new product line
c) new line of business
Stage two: system analysis
 Examining the existing system and its environment to
identify a)any potential improvements.
 Understanding of business needs before a solution
can be formulated.
 It respond to a request from the management.
 This begins because of three main reasons which are:
 a)problem solving
 b)New equipment
 c)new technology
Stage three: System design
Objective
 to reach consensus between users and systems
professionals on possible alternative designs for the new
system.
 Choose the best option either to:
a) Embark on internal developments.
b) Buying a package from outside.
 In-house Project Development will definitely meet the
organizational needs. However, if the firm fails to meet its
goals or objectives, then the In-house system will not work
Stage four: System implementation
 Maintenance involve both acquiring and implementing the latest software
versions of commercial package and making In-house modification to existing
system to accommodate changing user needs. This is the capstone phase
during which everything comes together.
 It includes:
a)Develop an implementation and conversion plan- needed because of the
complexity and importance of this phase.
b)Install any new hardware and software.
c)Train personnel- new employees may need to be hired and trained or existing
employees relocated.
d)Test the system and make any needed modifications.
e)Complete the documentation.
f)Convert from the old to the new system.
g)Deliver operational system –send the final report to the IS Steering Committee.
Stage five: System operation
 Once the system is set-up and running, operations and
monitoring continue.
 It includes:
 Fine-tune and do post-implementation review
- post implementation review involves analysing and
appraisal of the new system, its purpose is to determine
whether the new system meet the objectives established
during system analysis and design or not.
 Operate the system
 Periodically review and modify the system
BELOW IS A DIAGRAM EXPLAINING THE STEPS
INVOLVED IN THE SYSTEM DEVELOPMENT LIFE
CYCLE:
ACCOUNTANT’S ROLE IN FOUR STAGES OF
SYSTEM DEVELOPMENT LIFE CYCLE.
 Accountant plays a very important role in the system
development life cycle:
a)They provide a clear picture of their problems and
needs.
b)They act as members of the development team.
c)They act as auditors, to ensure that the system is
designed with appropriate computer audit technique.
 Below is the full explanation of the roles of accountant in
the three stages of the development life cycle.
System Planning
 Accountants are often called on to provide expertise in
evaluating the feasibility of projects during the planning process.
 As auditors, must examine the systems planning phase of the
SDLC since careful systems planning helps to prevent
unnecessary development costs.
 A careful system planning is a cost-effective activity in reducing
the risk of a)creating unneeded, unwanted, inefficient and
ineffective systems.
 Both internal and external auditors have vested interests in this
outcome.
System Analysis
 System analysis is an intellectual process that is
commingled with fact gathering.
 The accountant’s expertise makes them important
players in the design of a good well-controlled system:
 Internal control standards
 Audit trail requirements
 External reporting requirements
 Double entry system
System Design
 Making sure that the current system’s weak points are
eliminated while preserving its strengths.
 Conceptual system (able to adhere to the double entry
rule), and the systems professionals are responsible for the
physical system.
 If important accounting considerations are not
conceptualized at this point, they may be overlooked and
expose the organization to potential loss.
 The audit ability of a system depends in part on its design
characteristics
System Implementation
 Accountants implement the newly designed system
 Conducting follow up studies.
 Acquiring resources for the new system
 Training new or existing employees to use it.
 Companies conduct follow up studies on an ongoing
basis in order to determine whether the new system is
successful and, of course, to identify any new problems
with it.
System Operation.
 This is the final stage of the system development life cycle
The accountant role in this stage is:
 They take part in the post implementation review by
verifying whether the new system is able to meet the
company objectives.
 System operation and report if there are any areas that
require modification.
 Periodic review of the system in terms of internal control
standards and maintenance.
 They are the users of the system.
 REFFERENCES:
 Hall, James A; Accounting information systems:
Australia, South-western Cengage Learning [2008].
 Hollander, Anita Sawyer [et.al]: Accounting
information technology and business solutions;
Boston: Irwin/McGraw [2000].
 Hurt, Robert’s; Accounting information systems: Basic
concept and current issues; Boston: McGraw-Hill
Irwin, [2008].
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THANK
YOU
TATENDA!!!!!!!!
THANK YOU: TATENDA
Business Needs
And Strategy
Legacy
Situation
SYSTEM DEVELOPMENT CYCLE
Business Requirement
1. Systems Strategy
 Assessment
 Develop Strategy Plan
User requests for new
System
System Interfaces,
Architecture and
User requirements
High priority proposals
Undergo Additional
Study and development
Feedback
U
2. Project
UUu Initiation
User requests
 Feasibility Study
 Conceptual Analysis
 Design
 Cost/Benefit Analysis
Selected Systems
Proposals go forward for
Detailed design
User requests for system
Improvements and support
3. In –house Development
 Construct
 Deliver
4. Commercial Package
 Configure
 Test
 Roll out
New and Revised custom
Enters into production
5. Management and Support
• User help desk
• Configuration and management
• Risk management and security