GROUP THREE: QUESTION THREE

QUESTION: WITH AN AID OF A DIAGRAM EXPLAIN THE SYSTEM DEVELOPMENT LIFE CYCLE AND THE ROLE OF ACCOUNTANT IN EACH STAGE (20)MARKS

INTRODUCTION Every business organisation has got its own accounting system and this system follow a distinct pattern known as the System Development Life Cycle. This is a process of developing information systems through investigation, analysis, design, implementation and maintenance. The (SDLC) is also known as Information systems development or Application development. Due to changes in the environment such as a) technology b)structure c) changes in the size the organisation . Hence the need to develop the system to suit the new changes. The SDLC model can be understood as comprising five stages which are

Stage one: System Planning Takes place within the system master plan. This is a plan that co-ordinates the development of the project and the company long term range plan. Employ staff in the strategic plan that assist top management in a) identification of new markets, b) new product line c) new line of business

Stage two: system analysis Examining the existing system and its environment to identify a)any potential improvements. Understanding of business needs before a solution can be formulated. It respond to a request from the management. This begins because of three main reasons which are: a)problem solving b)New equipment c)new technology

Stage three: System design Objective to reach consensus between users and systems professionals on possible alternative designs for the new system. Choose the best option either to: a) Embark on internal developments. b) Buying a package from outside. In-house Project Development will definitely meet the organizational needs. However, if the firm fails to meet its goals or objectives, then the In-house system will not work

Stage four: System implementation Maintenance involve both acquiring and implementing the latest software versions of commercial package and making In-house modification to existing system to accommodate changing user needs. This is the capstone phase during which everything comes together. It includes: a)Develop an implementation and conversion plan- needed because of the complexity and importance of this phase. b)Install any new hardware and software. c)Train personnel- new employees may need to be hired and trained or existing employees relocated. d)Test the system and make any needed modifications. e)Complete the documentation. f)Convert from the old to the new system. g)Deliver operational system –send the final report to the IS Steering Committee.

Stage five: System operation Once the system is set-up and running, operations and monitoring continue. It includes: Fine-tune and do post-implementation review - post implementation review involves analysing and appraisal of the new system, its purpose is to determine whether the new system meet the objectives established during system analysis and design or not. Operate the system Periodically review and modify the system

BELOW IS A DIAGRAM EXPLAINING THE STEPS INVOLVED IN THE SYSTEM DEVELOPMENT LIFE CYCLE:

ACCOUNTANT’S ROLE IN FOUR STAGES OF SYSTEM DEVELOPMENT LIFE CYCLE. Accountant plays a very important role in the system development life cycle: a)They provide a clear picture of their problems and needs. b)They act as members of the development team. c)They act as auditors, to ensure that the system is designed with appropriate computer audit technique.

Below is the full explanation of the roles of accountant in the three stages of the development life cycle. System Planning Accountants are often called on to provide expertise in evaluating the feasibility of projects during the planning process. As auditors, must examine the systems planning phase of the SDLC since careful systems planning helps to prevent unnecessary development costs. A careful system planning is a cost-effective activity in reducing the risk of a)creating unneeded, unwanted, inefficient and ineffective systems. Both internal and external auditors have vested interests in this outcome.

System Analysis System analysis is an intellectual process that is commingled with fact gathering. The accountant’s expertise makes them important players in the design of a good well-controlled system: Internal control standards Audit trail requirements External reporting requirements Double entry system

System Design Making sure that the current system’s weak points are eliminated while preserving its strengths. Conceptual system (able to adhere to the double entry rule), and the systems professionals are responsible for the physical system. If important accounting considerations are not conceptualized at this point, they may be overlooked and expose the organization to potential loss. The audit ability of a system depends in part on its design characteristics

System Implementation Accountants implement the newly designed system Conducting follow up studies. Acquiring resources for the new system Training new or existing employees to use it. Companies conduct follow up studies on an ongoing basis in order to determine whether the new system is successful and, of course, to identify any new problems with it.

System Operation. This is the final stage of the system development life cycle The accountant role in this stage is: They take part in the post implementation review by verifying whether the new system is able to meet the company objectives. System operation and report if there are any areas that require modification. Periodic review of the system in terms of internal control standards and maintenance. They are the users of the system.

REFFERENCES: Hall, James A; Accounting information systems: Australia, South-western Cengage Learning [2008]. Hollander, Anita Sawyer [et.al]: Accounting information technology and business solutions; Boston: Irwin/McGraw [2000]. Hurt, Robert’s; Accounting information systems: Basic concept and current issues; Boston: McGraw-Hill Irwin, [2008].  

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Enters into production New and Revised custom Enters into production 5. Management and Support User help desk Configuration and management Risk management and security