1. ACCOUNTING INFORMATION SYSTEMS
Core Concepts of
ACCOUNTING INFORMATION SYSTEMS
Moscove, Simkin & Bagranoff
Developed by:
S. Bhattacharya, Ph.D.
Florida Atlantic University
John Wiley & Sons, Inc.

2. Chapter 11 Systems Study: Planning and Analysis
Introduction
The System Development Life Cycle: An Introduction
Systems Planning and the Initial Investigation
Systems Analysis

3. The Systems Development Life Cycle: An Introduction
Organizations study and reengineer their major accounting systems because
Their current system is inefficient
Two or more formally separate accounting systems need to be combined
The power of the Internet is causing many firms to scramble to develop a web presence
A systems study means examining an existing information system or environment, and in most cases, developing new and innovative solutions for it.

4. The Four Stages in the Systems Development Life Cycle
Plan and Investigate the systems study
Analysis of the company’s current system
Design of changes into the company’s current system
Implementation, follow-up, and maintainance of the newly designed system

5. System Development Life Cycle of a Business Information System
System operation on a daily basis
Preliminary investigation
Follow-up studies to determine if the newly designed system is operating efficiently
Analysis of the system to determine the cause (or causes) of the problems
Implementation and initial operation of the revised system
Design of system revisions to eliminate the problems

6. Systems 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.

7. Systems 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 view
2) utilizing an interdisciplinary study team to evaluate an organization’s information systems
3) having the company’s steering committee work with the study team in all phases of work

8. Broad 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.

9. The 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?

10. The 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.

11. The 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.

12. Systems Analysis
The basic purpose of the Systems Analysis phase is to study a system in depth.
The phases in systems analysis are:
understand system goals
use system survey techniques to acquire sufficient information regarding problems
suggest possible solutions to solve the systems problems through a systems analysis report.

13. General System Goals Cost awareness Relevant output
Simplified structure
Flexible structure

14. Critical 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 management
It is difficult to analyze the responses to open-ended questions and managerial opinions about a system

15. Top 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.

16. Operating 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.

17. Systems Survey Work
A 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.

18. Understanding 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.

19. Data Gathering Review of documentation
Observation of the current system
Using questionnaires to determine user and perhaps customer satisfaction
Review of internal control procedures
Conducting interviews with individual system participants

20. Data Analysis
Once 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.

21. The 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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23. Chapter 11