Textbook Notes (368,799)
Canada (162,168)
MGAD30H3 (5)
Peter (4)
Chapter 5

Chapter 5 _ Systems Development and Program Change Activities.docx

5 Pages
371 Views
Unlock Document

Department
Financial Accounting
Course
MGAD30H3
Professor
Peter
Semester
Summer

Description
Chapter 5 – Systems Development and Program Change Activities Overview:  Identify stages of SDLC (systems development life cycle)  Common problems that lead to failure in the systems development  Understand strategic system planning  Accountants role in SDLC  Structured and object-oriented approaches to system design  Cost-benefit analysis of proposed information systems  Pros/cons of commercial software option and discuss decision-making process  System walkthrough  System documentation and their purpose Participants in systems development  Systems professionals – those who build the program  End users – whom the system is built for  Stakeholders – within/outside of organization who have an interest but are not end users  Accountants/auditors – addresses controls, accounting/auditing issues Why are accountants/auditors involved?  Significant financial information and transactions  Nature of the products that emerge from the SDLC, quality of accounting information Info systems acquisitions  In-house development – require systems that are highly unique  Commercial systems – low costs, industry-specific vendors, businesses are too small to in-house, downsizing of organizations o Turnkey systems: finished and tested systems that are ready for implementation  General accounting systems (i.e. Simply Accounting) – purchase modules that meet their specific needs (i.e. AR module)  Special-purpose systems – target selected segments of the economy (i.e. medicine) that have unique accounting procedures and rules  Office automation system (Microsoft office) o Backbone systems: provide basic system with all primary processing modules programmed o Vendor-supported systems: hybrids of custom and commercial systems. The system themselves are custom but the development service is commercially available  client is dependent on the vendor for custom programming and maintenance  Pros of custom o Short implementation time, low cost, reliable  Cons of custom o Independence, the need for custom, and maintenance dependence SDLC (Systems Development Life Cycle)  8 steps: o Plan  Linking projects to objectives of the company  Strategic systems planning involves the allocation of systems resources at the macro level (i.e. resource budgeting)  Why?  A plan is better than no plan  Reduces crisis component in systems development  Provides authorization control for SDLC  Cost management  Project planning is to allocate resources to individual applications within the framework of the strategic plan  Project proposal provides basis for deciding whether to proceed with the project first and connects plan to objectives  Project schedule budgets times and costs for all stages  Auditor’s role  Examine the systems planning phase o Analyze  First survey the current system, then what the user’s needs are  Survey o Determine what can be salvaged o Cons: stuck thinking too much about current system, limits creativity o Pros: determine what should be kept, helps understands current/new system, determining the root problem  Gather information o Data sources, users, data stores, processes, data flows, controls, transaction volumes, error rates, resource costs, bottleneck/redundant operations  How to gather information o Observe, task participation, personal interviews, and reviewing key documents (i.e. org charts, job descriptions, budgets, forecasts)  Auditor’s role o Auditor’s need to express their needs (i.e. logs, audit trails) o Design concept  Purpose is to provide several alternatives, to avoid posing preconceived constr
More Less

Related notes for MGAD30H3

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit