Deck 12 Accounting Information Systems

Romney and SteinbartLinda BatchMarch 2012

Learning Objectives• AIS Development Strategies (Chapter 21)

• Ways to acquire an AIS• BPM and BPMS

• Systems Development (Chapter 22)• Conceptual systems design process (5 steps)• Physical systems design process• Systems implementation and conversion – important

• Microsoft Access– Creating Macros and Switchboard– Work on Assignment 4

• Quiz (Chapter 9, 10)

Chapter 21 – AIS Development Strategies

• Definitions– Canned Software – sold to users with similar requirements– Turnkey solutions – software and hardware sold as a package and are

usually specialized in a particular industry– Application Service Providers – provide software over the internet– End User Computing – end users develop their own IT tools

• Purchase an AIS– The process follows the same Systems Development Life Cycle except– they must determine if the market can provide them a viable solution – some physical design and conversion activities may be omitted

Chapter 21 – Auditing Computer Based AIS• In House Development of AIS

– Different levels between customizing purchased software and full in-house computer programming

– End User computing is when the Users develop their own IT tools

• Outsourcing the AIS– Advantages include lower costs, shorter development time,

elimination of peak and valley usage, asset utilization– Disadvantages include reduced competitive advantage, locked in

system, poor service, increased risk, inflexibility, loss of control

• Prototyping the AIS– A systems design approach in which a simplified working model

of a system is developed– Operational prototypes is where you put it into production– Used when there is a high level of uncertainty

Chapter 21 – AIS Development Strategies• Business Process Management (BPM) and BPMS

– Systematic approach to continuously improving and optimizing your business processes which is automated and facilitated by systems solutions

– Business Processes:• produce competitive advantage• must be managed end to end• should be agile• should be aligned with organizational strategy and needs

– ERP systems integrate BPMS functionality into their system

• Computer Aided Software Engineering– Integrated package of tools that skilled designers use to help

plan, analyze, design, program, maintain an information system

Chapter 22 – Systems Design, Implementation, OperationSystemsanalysis

ConceptualSystemDesign

PhysicalDesign

ImplementationAnd

Conversion

Operationand

Maintenance

Chapter 22 – Systems Design, Implementation, Operation

Chapter 22 – Systems Design, Implementation, Operation

Chapter 22 – Systems Design, Implementation, Operation• Systems Physical Design

– The conceptual design is translated into detailed specifications that are used to code and test the computer programs– Hardware implementation and upgrades are part of this process

• Systems Implementation– The plan consists of implementation tasks, expected completion dates, cost estimates, and who is responsible for

each task– People must be hired/transferred to meet the business requirements– Prepared systems development documentation, operations documentation, and user documentation– System must be tested via walkthroughs, processing test data and acceptance testing. Users develop the criteria for

acceptance and make the final decision whether to accept the AIS.

– Integrated test facility (ITF) where a fictitious division is created and transactions are created that will not be included in the corporate results

– Snapshot technique where select transactions are tagged with a special code and these are reviewed by internal audit– Systems Control Audit Review file (SCARF) – continually monitors transactions and collects them into a log for periodic

review

Chapter 22 – Systems Design, Implementation, Operation• Systems Conversion

– Conversion is changing from the old to the new AIS system– Hardware, software, data files and procedures must be converted

– Direct conversion • terminates the old system when the new one starts up• The conversion plan must consider the requirements for data

retention for statutory requirements such as tax audits etc.• Unless a system has been carefully tested there is no backup in

the event the system does not operate

– Parallel Conversion• The two systems are run in parallel for a period of time• Risk of record duplication, fraud losses, costly

Chapter 22 – Systems Design, Implementation, Operation• Systems Conversion

– Phase in Conversion • Gradually replaces parts of the AIS• Additional costs of building and testing system interfaces

– Pilot conversion• Implements a system in one part of the organization such as a

branch location• Long conversion time and requirement to build interfaces

Chapter 21 and 22 – Review for Final• Acquiring a system

– Definitions (slide 4)– Ways to acquire an AIS (slide 4 and 5)

• Purchase• Build in House• Outsource• Prototype

– Business Process Management and Business Process Management Systems (slide 6)

– Computer Aided Software Engineering (slide 6)– Five steps to developing an AIS (slide 7)– System Conversion – know what it is and be able to discuss briefly

the four types (as per these slides)