Accounting
information system
A Business process approach
FREDERICK L. JONES
DASARATHA V. RAMA
Jones Rama
LOGO
INTRODUCTION TO
SYSTEMS
DEVELOPMENT
Chapter 14
King Saud University
Nawal Habib Bin_saleh
Contents
Introduction
Systems Development Methodology
Problem Solving Approach to
Systems Development
Introduction
This chapter will focus on the process by which system
are developed in organization
Performing an internal audit or providing assurance
services may involve assessing an organization's
approach to systems development and the associated
risks and controls. Thus, a good understanding of
systems development processes is useful to
accounting.
Systems Development Methodology
The concept of methodology is
crucial to understanding how
organizations build systems.
A Systems Development Methodology
breaks down systems development
into a series of well-defined phases.
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Systems Development Methodology
A Systems Development Methodology includes
key features :
1- It breaks down systems development into a series of
manageable phases.
2- Each phase has clearly defined objectives.
3- Specific tools and techniques are used in each
phase.
4- Each phase involves specific project management
activities.
5- Each phase end with clearly specified deliverables.
6 - Users/managers provide feedback and sign off on
deliverables.
Systems Development Methodology
We will describe one standard methodology :
Systems Development Life Cycle (SDLC)
Systems Development Methodology
Activities are organized into four key phases:
1
Systems Investigation
2
Systems Analysis
3
Systems Design
4
Systems Implementation
Systems Development Methodology
• Important issues in systems development:
I. Systems development must be aligned to business
strategy and objectives .
II. Business processes can undergo radical changes as a
result of Systems development .
III.Developing or modifying applications is obviously a
key component of Systems development .
IV.Consideration of the IT environment is important .
Systems Development Methodology
IT environment has four key elements of the IT environment
1- IT strategy
is the organization’s broad vision for using IT to support the
organization’s overall business strategy and processes.
2- IT infrastructure
It refers to the way that technology is used for recording ,
processing , storing , and communicating data
Systems Development Methodology
3- IT function
refer to organization of people responsible for acquiring and
developing information system and for supporting end-users
4- Systems development process
is process by which applications are developed, used, and maintained.
The process is represented by the systems development life cycle—a
series of steps used by organizations to build accounting applications.
Systems Development Methodology
• Systems development models and
techniques:
Developers
need to take
advantage of
the problem
solving aids
that are
available
1.Techniques:
are methods for
solving a
specific kind of
problem ( a set of
steps for recognizing
event ).
2. Models :
help in organizing
concepts in a
particular area of
interest into a
meaningful
framework for
problem solving. We
use several
standard graphical
models to represent
different aspects of
an AIS.
Systems Development Methodology
Models and Techniques Used in Different Phases of the Systems Development Life Cycle
Phase
Examples of Models/Techniques
Systems
investigation
Workflow table
Overview activity diagram
Systems
analysis
Workflow table
Activity diagram
Use case diagram
Use case descriptions
Risk analysis templates
Types of internal controls
Systems design
UML class diagram
Form layout
Input controls
Report layout
Use case diagram
Use case descriptions
Systems
implementation
Training manual
User manual
1) Systems Investigation
Systems Investigation is the first step in the system development life cycle
1-Objectives:
a) study the current system,
b) identify the need for changes,
c) identify possible solutions,
d) and assess the feasibility of
the proposed solution.
1) Systems Investigation
2-Tasks:
The factors of task requirements in systems investigation:
A) Business strategy:
•
Study alignment of proposed system with business strategy and objectives.
B)AIS applications:
•
•
•
Understand current applications (if any) and perceived deficiencies.
Propose new applications or modifications.
Identify benefits and costs of acquiring and implementing new applications.
C) Business process:
•
•
•
•
•
Understand current business process and needed changes.
Identify effects of proposed systems on business process.
Identify effects of proposed systems on employees.
Identify costs of redesigning processes and training users.
Identify benefits of modified business processes.
D) IT environment:
•
Assess whether the proposed system is feasible given the organization’s IT strategy, IT
infrastructure, IT function, and systems development process.
1) Systems Investigation
Task Issues:
A) Business strategy:
•
Manegement may not allocate sufficient resources for a project unless the
project contributes to overall business goals .
• Accounting systems are modified for three main reasons :
1- changes in technology .
2- changes in environment .
3-problem in existing systems.
B) AIS applications:
•
•
•
Designers must understand the functions of the current applications and its
limitations.
Note that several alternative solutions are typically considered.
For each possible solution ,the costs and benefits of the proposed
application should be considered.
1) Systems Investigation
C) Business process :
• Note that the process may not be reviewed in detail at this stage .
• Systems changes often lead to drastic changes in business process.
D) IT environment :
• New technology may offer significant opportunities the extent to
which a business is able to take advantage of these opportunities
may depend on the IT environment currently in place.
1) Systems Investigation
3-Conducting System Investigation:
• The final step in this phase involves communicating the
results of the systems Investigation to users and
management.
• The output of system called feasibility report.
There are three section in the report:
1-executive
summery:
• Is a brief summery of
the problem , with key
recommendation .
2-discussion :
3-documentation :
• Provide details of the
problem.
• Is most details section
where table of data
,calculations and charts
are presented.
1) Systems Investigation
4-Model/Techniques used in systems
investigation :
The model or techniques can helpful in structuring the
information obtained during the investigation and
developing a solutions.
• Workflow table.
• Overview activity diagram.
2) System Analysis
The second phase of the system development life cycle.
It involve a study of the current system and proposed solution on more detail
than on the investigation stage
1-Objectives:
•
Is to develop requirements for the new system.
•
Aims to provide details into how the new system recommended
in the investigation phase should function.
2) System Analysis
2-Tasks:
Business strategy:
•
Study alignment of proposed system with business strategy and objectives.
AIS applications:
•
•
•
Understand current applications (if any) and perceived deficiencies.
Propose new applications or modifications.
Identify benefits and costs of acquiring and implementing new applications.
Business process:
•
•
•
•
•
•
•
•
Understand current business process and needed changes.
Document current business process.
Identify effects of proposed system on business process.
Identify effects of proposed system on employees.
Design and document revised business process.
Model data needed to support business process/users.
Identify costs of redesigning processes and training users.
Identify benefits of modified business processes.
IT environment:
•
Assess whether proposed system is feasible given the organization’s IT strategy, IT
infrastructure, IT function, and systems development process.
2) System Analysis
Task Issues:
• Business process and associated data must now be studied in detail.
This is why three new items have been added.
• Costs –benefits analysis is a key step in system analysis , give additional
time and effort spend on analysis , a more accurate estimate of costs
and benefits can developed at this stage .
2) System Analysis
3-Conducting Systems Analysis :
• The development team gathers the information needed. If
adequate resources are not allocated to information
gathering, the subsequent analysis may be flawed.
• Appendix provides useful guidance for gathering information :
• Once the analysis is complete, the development team selects
and organizes the relevant information into a system analysis
document that will be read by users and managers.
2) System Analysis
Appendix 14.A :
Techniques for Acquiring Information
Information gathering
plan
•Using prior knowledge in
developing an information
gathering plan.
•Identifying information needs.
•Identifying sources of information.
Interview planning
•Determine interview questions.
•Determine sequence of
interview questions .
•Decide on wording of interview
questions .
2) System Analysis
4-Model/Techniques Systems Analysis :
Tools that can be used during analysis include :
• Activity diagrams could be prepared for the proposed system.
• Use cases are often used during requirement analysis.
• Project management tools for documenting cost-benefit and
scheduling information.
3) System Design
Is the third phase of systems development life cycle
1-Objectives:
•
Is to develop a physical realization of system.
•
This is accomplished by designing reports, input forms, table,
and processing steps; by communicating requirements to
potential supplier; and by selecting a supplier.
3) System Design
2-Tasks:
Business strategy:
•
Ensure that the design of the proposed system is consistent with business strategy
and objectives.
AIS applications:
•
•
•
•
Design reports, input forms, tables, and processing.
Prepare RFQ (request for quotation) or RFP (request for proposal).
Select supplier.
Select hardware and software.
Business process:
•
•
Refine business processes and controls.
Design training program.
IT environment:
•
Ensure that the design of the proposed system is appropriate given the organization’s
IT strategy, IT infrastructure, IT function, and systems development process.
3) System Design
Task Issues:
•
The design of AIS applications accounts for much of time and effort
during the design stage. Numerous design decisions must be made. Some
of the design tasks to be performed are listed:
Design of AIS Applications
1.
2.
3.
4.
5.
6.
7.
8.
9.
Precise specification of data that will need to be collected .
Design of records and tables, primary keys, and foreign keys .
Relationship between tables.
How data will be collected (e.g., data entry form, bar code reader, or e-commerce) .
Form content and organization.
Input controls.
Report content and organization.
Frequency of report generation.
Data entry and update mode: real-time system, batch processing (on-line/off-line), and batch updates
.
10. Required linkage between this application and others (e.g., general ledger or inventory) .
11. How data and processing will need to be shared—centralized, centralized processing with distributed
entry, decentralized, distributed processing, etc.
12. Access controls and backup/recovery controls.
3) System Design
•
Business process :
• For system development efforts to be successful ,organizations must
carefully consider the impact to the new system on the various people
and devise ways to manage the change.
• The IT staff should consider the knowledge and skills of the affected
users, identify training needs , and make decisions about how the
training should be delivered.
3) System Design
3-Conducting System Design:
• By using appropriate models/techniques to document the design, the
developers can facilitate communication between the development
team and user groups.
• Developing the design in detail makes it easier to maintain and enhance
the system after implementation
• If the system is to be developed by consultant , value-added reseller , or
supplier , or if the organization is considering outsourcing the IT
function, then the design specifications must be sent to interested
suppliers.
3) System Design
4-Models /Techniques Used in System Design :
• The UML class diagram can be used to show the entities and relationship
in the database.
• The UML activity diagram and risk analysis templates can be used to
document the new process , risk and control.
• The UML use case diagram documents .
• Report layouts and descriptions.
4) system Implementation
The fourth phase of the systems development life cycle
1-Objectives:
• Is to build a new or revised information system and convert from the old
system to the new.
• Activity include developing applications , testing the system , training
users , making necessary changes to business processes , installing the
system , and converting from the old to the new system .
• At the conclusion of this phase , the new system is ready for use.
2-Tasks:
• To some extent, the other phases were “paperwork”; this phase involves
more hands-on activity..
4) system Implementation
Business strategy:
•
Ensure that the implementation is consistent with business strategy and
objectives.
AIS applications:
• Develop application.
• Test application.
• Install application.
• Train users.
• Convert to new system.
Business process:
• Implement changes to business process/controls.
• Implement training program.
IT environment:
• Ensure that the implementation is appropriate given the organization’s IT
strategy, IT infrastructure, IT function, and systems development process.
4) system Implementation
Task Issues :
• The implementation effort is geared towards implementing the new
application .
• Develop application must be tested during the implantation stage .
• System conversion: refers to the steps taking for preparing the new
system for use
• Switch to a new system must set up the initial data before using a new
application.
Problem Solving Approach to System Development
• Each phase’s objective can be viewed as a “problem”
that the development team lead to solve .
• We demonstrate that professional problem solving
model can be applied to help developers achieve
phase objectives.
Problem Solving Approach to System Development
• Phase Objectives
Phase
Objective
Systems investigation
Propose a solution from alternatives that is feasible and
will meet the organization’s needs.
Systems analysis
Develop detailed requirements for the new system.
Systems design
Specify the physical reality of the system (specify forms,
reports, tables, processes, etc.) and choose a supplier.
Systems implementation
Build the new system and convert from the old system to
the new
Problem Solving Approach to System Development
• Generic Tasks in the Professional Problem
Solving Model
Task
Define
Description
Define the problem and solution alternatives to be considered.
Acquire
Determine what information is required and obtain it from a variety
of sources.
Develop
Select, design, and/or implement a solution.
Communicate
Communicate the solution to diverse audiences.
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LOGO
King Saud University