University:
California State University, Northridge
Course:
ACCT 220 | Introduction to Financial Accounting
Academic year:

2024
Views:

244

Pages:

28
Author:

Angelo Rhodes

Chapter 17 Acquiring and Implementing Accounting Information Systems Learning Objectives • Describe the systems acquisition/ development process and its major phases and steps. • Understand the differences in the process for purchased versus internally developed systems. • Understand the nature and importance of the accountant’s involvement in systems development and acquisition projects. 2 Acquiring an AIS from External Parties • Purchase, rent, or lease software packages • Application Service Providers (ASP • Software as a Service (SaaS) 3 Systems Development Objectives • To ensure the information system satisfies an organization’s informational and operational needs (product-oriented objective) • To develop/acquire an information system in an efficient and effective manner (process-oriented objective) 4 Systems Development Methodology • Divide project into identifiable processes, each having a starting and ending point • Produce deliverables to monitor process • Provide signoffs • Test system before implementation • Conduct training • Use program change controls • Conduct post-implementation review 5 Systems Development Life Cycle (SDLC) 6 SDLC Phases, Purposes & Tasks • Analysis (Bubbles 1.0 and 2.0) – Develop specs for a new or revised system: • Study problem and environment. • Propose solutions. • Design (Bubbles 3.0 and 4.0) – Develop an appropriate system manifestation: • • • • Convert solution to a physical design. Choose software and hardware. Write design specifications. Devise implementation plans, system tests and training programs. 7 SDLC Phases, Purposes & Tasks • Implementation (Bubble 5.0) – Begin using the new system: • Write, test and debug computer programs. • Convert to new or revised system. • Operations (Bubbles 6.0 and 7.0) – Use the new system: • Conduct post-implementation review. • Perform systems maintenance. 8 Conducting the Systems Survey • Determine the nature and the extent of each reported problem. • Determine the scope of the problem. • Propose a course of action that might solve the problem. • Determine the feasibility of any proposed development. • Devise a detailed plan for conducting the analysis step. • Develop a summary plan for the entire development project. 9 Structured Systems Analysis Tasks • Define the problem precisely. • Devise alternative designs (solutions). • Choose and justify one of these alternative design solutions. • Develop logical specifications for the selected design. • Develop the physical requirements for the selected design. • Develop the budget for the next two systems development phases: systems design and systems implementation. 10 Steps to the Analysis Deliverable: The Approved Systems Analysis Document • Study and document the current physical system. • Define user requirements for the new system. • Conduct a cost/effectiveness study. • Perform the cost/benefit analysis. • Determine each alternative’s effectiveness. • Recommend an alternative. • Prepare the approved systems analysis document. • Obtain approvals. 11 Approved Systems Analysis Document 12 Systems Selection • Determine what computer software design will implement the logical specification developed in structured systems analysis. • Determine what computer hardware will satisfy the physical requirements established in structured systems analysis. • Choose acquisition financing methods that are in the best interest of the organization. • Determine appropriate acquisition ancillaries. 13 Approved Configuration Plan • Chosen software configuration and expected performance specifications. • Chosen hardware type, manufacturer, and model. • Items to be included in the hardware contracts. • Results of testing alternative software design and hardware resources. • Assessment of financing and outsourcing alternatives. 14 Hardware Acquisition Alternatives • Internal acquisition and management via rent, lease or purchase. – Less flexible than use of external sources. – Permits the organization to control and tailor the system. • Owned and managed by external entities. – Usually provide more capacity and take less resources than internal acquisition. – Options include a service bureau, outsourcing, ASP or SaaS. 15 Internal vs. External System Sources 16 Systems Selection • Prepare requests for proposal (RFP) • Evaluate vendor proposals – Validate vendor proposals – Consider other data and criteria – Suggest resources 17 Typical Contents of a Request for Proposal 18 Detailed Vendor Comparison 19 Structured Systems Design • Convert the structured specification into a reliable, maintainable design. • Develop a plan and budget that will ensure an orderly and controlled implementation of the new system. • Develop an implementation test plan that ensures that the system is reliable, complete, and accurate. • Develop a user manual that facilitates efficient and effective use of the new system by operations and management personnel . 20 Project Completion Report • Summary of requirements satisfied by the new system. • Estimated and actual duration of each development stage. • Estimated and actual systems performance. • System documentation. • Program documentation. • User and operations run manuals. • System test report. • User and operator training programs and manuals. 21 Systems Implementation Tasks • Complete, as necessary, the design contained in the approved systems design document. • Write, test, and document the programs and procedures required by the approved systems design document (inhouse systems only). • Ensure, by completing the preparation of user manuals and other documentation and by educating and training personnel, that the organization’s personnel can operate the new system. • Determine, by thoroughly testing the system, that the system satisfies the users' requirements. • Ensure a correct conversion by planning, controlling, and conducting an orderly installation of the new system. 22 Systems Implementation Approaches 23 Post Implementation Review Tasks • Determine if the user is satisfied with the new system. • Identify how well the system’s achieved performance corresponds to the performance requirements, recommending improvements if necessary. • Evaluate the quality of the new system’s documentation, training programs, and data conversions. • Ascertain that the organization’s project management framework and SDLC were followed during development. 24 Post Implementation Review Tasks (Cont’d.) • Recommend improvements to the systems development/acquisition standards manual if necessary. • Improve the cost/effectiveness analysis process by reviewing cost projections and benefit estimations and determining the degree to which these were achieved. • Improve project-planning procedures by examining total project costs and the project team’s ability to adhere to project cost estimates and schedules. • Make any other recommendations that might improve the operation of the system or the development of other information systems 25 System Maintenance Types • Corrective. Maintenance performed to fix errors. • Perfective. Maintenance conducted to improve the performance of an application. • Adaptive. Maintenance that adjusts applications to reflect changing business needs and environmental challenges. 26 Systems Maintenance Tasks • Accomplish system changes quickly and efficiently. • Prevent system changes from causing other system problems. • Make system changes that are in the organization's overall best interest. • Perfect systems development and systems maintenance procedures by collecting and using information about system changes. • Supplant systems maintenance with the systems survey if requested changes are significant or if they would destroy the system. • Minimize control exposure and organizational disruption that can be caused by systems maintenance. 27 Accountant’s Involvement in AIS Development/Acquisition • User • Analyst • Purchaser • Implementer • Consultant • Internal Auditor • External Auditor 28