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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 accountants involvement in
systems development and acquisition
projects.
2
10
Existing documentation
Interviews
Surveys
Observation
12
Cost/Benefit Analysis
Which alternative best accomplished
the goals?
Which alternative achieves the goals
for the least cost?
15
Cost/Benefit Analysis
Direct costs
Direct benefits
Indirect costs
Indirect benefits difficult to
measure
Tangible versus intangible costs and
benefits
Recurring versus nonrecurring costs
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Determine which
acquired system will
best meet the users
needs
Determine (with the
vendors assistance)
what hardware will be
needed
Contract with the
vendor
17
20
Vendor Proposals
21
22
Thoroughly test
the system
Convert
procedures and
data
Implement hooks
to existing
systems
25
Implementation Strategies
Parallel costly but safest
Direct riskiest and cheapest
Modular most common
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27
30
31
32
Accountants Involvement
User Test and operate
Analyst On analysis team
Purchaser On selection team
Implementer Conversion and
configuration
Consultant Outside expert
Internal Auditor Monitor process and
evaluate controls
External Auditor Audit it
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Summary
Need an SD(A)LC methodology
Logical steps analysis, design,
implementation, operation
Today almost all operational systems are
purchased
If purchased, need external access to data
for reporting
If purchased, need way to feed data
to/from the system
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