Chapter 5 System Development and Program Change Activities

Discussion Questions

16. Who conducts the post-implementation review? When should it be conducted? If an

outside consulting firm were hired to design and implement the new system, or a canned
software package were purchased, would a post-implementation review still be useful?
Response: The systems personnel should conduct the post-implementation review
regardless of whether the system was developed in-house or purchased. The end users should be
interviewed as well as the accountants. The post-implementation review should occur a few
months after the implementation phase so that the user can adjust to the system and processing
occurs at a normal rate.
17. Discuss the importance of involving accountants in the detailed design and
implementation phases. What tasks should they perform?
Response: The accountants should provide technical expertise during the detailed design
phase. For AISs, the specifications must comply with GAAP, GAAS, SEC, and IRS regulations.
Accounting choices, such as depreciation and inventory valuation methods, must be incorporated.
The accountants should also participate in the implementation phase by specifying and reviewing
system documentation because these documents play an important role in the audit process.
18. Discuss the independence issue when audit firms also provide consulting input into the
development and selection of new systems.
Response: This is a violation of the Sarbanes-Oxley Act. Having a system audited by the
consulting firm that initially proposed it may produce a bias on the consulting firm’s part to view
the system in a positive light.
19. Discuss the various feasibility measures that should be considered. Give an example of
each.
Response: There are several common feasibility measures.
 One feasibility measure is technical feasibility, which is an assessment as to whether the
system can be developed under existing technology or whether new technology is
needed. An example might be a situation in which a firm wants to completely automate
the sales process. A question would be: Is technology available that allows sales to be
made without humans?
 Another feasibility measure is economic feasibility, which is an assessment as to the
availability of funds to complete the project. A question would be: Is it cost feasible to
purchase equipment to automate sales?
 Legal feasibility identifies any conflicts with the proposed system and the company’s
ability to discharge its legal responsibilities. An example would be a firm that is
proposing a new mail order sales processing system for selling wine. Is it legal to sell
wine without identification? (The answer must be yes, because such systems exist.)
 Another consideration is operational feasibility, which shows the degree of compatibility
between the firm’s existing procedures and personnel skills and the operational
requirements of the new system. The firm should ask: Do we have the right workforce to
operate the system? If not, can employees be trained? If not, can they be hired?
 Lastly, schedule feasibility is important, and the concern is whether the firm has the ability
to implement the project within an acceptable time frame. An example would be a new
ticket sales system for a sports team. The system would need to be implemented prior to
the start of the new season.
20. Discuss three benefits associated with modular programming.
Response: The following three benefits are associated with modular programming.
a. Programming Efficiency. Modules can be coded and tested independently, which vastly
reduces programming time. A firm can assign several programmers to a single system. Working
in parallel, the programmers each design a few modules. These are then assembled into the
completed system.
b. Maintenance Efficiency. Small modules are easier to analyze and change, which
reduces the start-up time during program maintenance. Extensive changes can be parceled out to
several programmers simultaneously to shorten maintenance time.
c. Control. If modules are kept small, they are less likely to contain material errors or
fraudulent logic. Because each module is independent of the others, errors are contained within
the module.