Chapter 5: Systems Development and Program Change Activities

Participants in Systems Development

Systems professionals -They are the systems analysts, systems engineers, and
programmers. They gather facts about problems with the current system, analyze these
facts, and formulate a solution to solve the problems.

End users- They are those for whom the system is built. These include managers,
operations personnel, accountants, and internal auditors.

Stakeholders - These are individuals either within or outside the organization who have
an interest in the system but are not end users. These include accountants, internal and
external auditors, and the internal steering committee that oversees systems development.

Accountants/Auditors- These are those professionals who address the controls,

accounting, and auditing issues for systems development. This involvement should
include internal auditors and IT auditors.

Why Are Accountants and Auditors Involved with SDLC?

The creation of an information system entails significant financial transactions.

Accountants are as concerned with the integrity of this process as they are with any
manufacturing process that has financial resource implications.
The nature of the products that emerge from the SDLC. The quality of accounting
information rests directly on the SDLC activities that produce accounting information
systems (AIS).

How Are Accountants Involved with the SDLC?

Accountants are users, they must provide a clear picture of their problems and needs to
the systems professionals.
Accountants participate in systems development as members of the development team,
their involvement often extends beyond the development of strictly AIS applications.
Accountants are involved in systems development as auditors, as accounting information
systems must be auditable.
Information Systems Acquisition

In-House Development. Firms design their own information systems through in-house systems
development activities. In-house development requires maintaining a full-time systems staff of
analysts and programmers who identify user information needs and satisfy their needs with
custom systems.

Commercial Systems. Faced with many competing packages, each with unique features and
attributes, management must choose the system and the vendor that best serve the needs of the
organization.
Types of Commercial Systems

Turnkey Systems. These are completely finished and tested systems that are ready for
implementation. These are often general-purpose systems or systems customized to a
specific industry.

General accounting systems. These are designed to serve a wide variety of user needs.
Typical modules include accounts payable, accounts receivable, payroll processing,
inventory control, general ledger, financial reporting, and fixed asset.

Special-Purpose Systems. Some software vendors create special-purpose systems that

target selected segments of the economy. Software vendors have thus developed
standardized systems to deal with industry-specific procedures.

Office automation systems. These are computer systems that improve the productivity
of office workers.

Backbone systems. These provide a basic system structure on which to build. Backbone
systems come with all the primary processing modules programmed

Vendor-supported systems. These are hybrids of custom systems and commercial

software. Under this approach, the vendor develops (and maintains) custom systems for
its clients.
Advantages of Commercial Software

Implementation Time
Cost
Reliability

Disadvantages of Commercial Software

Independence
The need for customized systems
Maintenance