Presentation on theme: "ACCOUNTING INFORMATION SYSTEMS"— Presentation transcript:
1ACCOUNTING INFORMATION SYSTEMS Core Concepts ofACCOUNTING INFORMATION SYSTEMSMoscove, Simkin & BagranoffDeveloped by:S. Bhattacharya, Ph.D.Florida Atlantic UniversityJohn Wiley & Sons, Inc.
2Chapter 11 Systems Study: Planning and Analysis IntroductionThe System Development Life Cycle: An IntroductionSystems Planning and the Initial InvestigationSystems Analysis
3The Systems Development Life Cycle: An Introduction Organizations study and reengineer their major accounting systems becauseTheir current system is inefficientTwo or more formally separate accounting systems need to be combinedThe power of the Internet is causing many firms to scramble to develop a web presenceA systems study means examining an existing information system or environment, and in most cases, developing new and innovative solutions for it.
4The Four Stages in the Systems Development Life Cycle Plan and Investigate the systems studyAnalysis of the company’s current systemDesign of changes into the company’s current systemImplementation, follow-up, and maintainance of the newly designed system
5System Development Life Cycle of a Business Information System System operation on a daily basisPreliminary investigationFollow-up studies to determine if the newly designed system is operating efficientlyAnalysis of the system to determine the cause (or causes) of the problemsImplementation and initial operation of the revised systemDesign of system revisions to eliminate the problems
6Systems Planning and the Initial Investigation Systems Planning involves using the systems approach to performing a systems study.Planning is a constant process that continues throughout all phases of the systems study.
7Systems Approach“Planning for success” means beginning a systems study with a carefully focused investigation that follows three major study guidelines:1) approaching organizational problems from a broad point of view2) utilizing an interdisciplinary study team to evaluate an organization’s information systems3) having the company’s steering committee work with the study team in all phases of work
8Broad Viewpoint in a Systems Study When performing a systems study, the participants should use a systems approach – that is, a broad point of view.A broad viewpoint will identify the goals top management really desired and find the “real problems” of the current AIS.
9The Interdisciplinary Study Team The use of an interdisciplinary study team follows from the importance of a broad viewpoint when performing a systems study.The team can provide knowledge of several disciplines and serve as a team of “specialists”.Who might be chosen as study team members?
10The Steering Committee The Steering Committee interfaces between the client company’s management and the study team.A steering committee requires that top management focus on the study and development, ensures that top management will be involved, and helps ensure that the newly designed system is one that the company wants and needs.
11The Preliminary Investigation The first task of a systems study is to perform a preliminary investigation of the information system in question and to advise the steering committee of its findings.An important part of this investigation is to separate symptoms from causes.The “deliverable” of this phase is the preliminary investigation report.
12Systems AnalysisThe basic purpose of the Systems Analysis phase is to study a system in depth.The phases in systems analysis are:understand system goalsuse system survey techniques to acquire sufficient information regarding problemssuggest possible solutions to solve the systems problems through a systems analysis report.
13General System Goals Cost awareness Relevant output Simplified structureFlexible structure
14Critical Success Factors The strategic success of an information system might be determined by achieving a small number of critical success factors.Two weaknesses of this approach are:It is biased toward the perceptions of top managementIt is difficult to analyze the responses to open-ended questions and managerial opinions about a system
15Top Management Systems Goals Much of the information required by top management is for long-range planning and controlling functions.Long-range planning requires external information.The study team should ascertain whether needs of top management are being satisfied by company’s current information system.
16Operating Management Systems Goals Decision-making functions of operating managers relate to well-defined and narrower organizational areas than those of top management.Most of their decisions are for the current business year and information required is generated internally.
17Systems Survey WorkA Systems Survey’s objective is to enable the consultants to obtain a complete understanding of their client company’s current operational information system and environment.Of special importance is identifying strengths and weaknesses of the current system.
18Understanding the Human Element and Potential Behavioral Problems Many people resist changes to their jobs.The systems study should gain cooperation and support of employees or it will not be effective.In Joint Application Development the users work as consultants in developing the revised system.
19Data Gathering Review of documentation Observation of the current systemUsing questionnaires to determine user and perhaps customer satisfactionReview of internal control proceduresConducting interviews with individual system participants
20Data AnalysisOnce data about the system is gathered, it must be analyzed.Work Measurement Techniques evaluate the efficiency of employees in performing jobs repetitive in nature.A Work Distribution Analysis focuses on an employee’s job function and how much time is spent on each particular task.
21The Final Systems Analysis Report The final procedure in systems analysis is to communicate the consultants’ systems survey work in a Final Systems Analysis Report.Report should be submitted to steering committee.The report should contain all information needed by management to make a sound decision concerning the proposed design.
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