Accounting Information System & Internal Control

Strategi
Pengembangan SIA
Wahdan Arum Inawati
 Accounting Information System & Internal Control

Contents

Purchasing Prewritten Developing Software

In House
01 Software 02 Pengembangan oleh
Membeli Departemen Sistem
Perangkat Lunak Informasi In House

Outsource The Prototyping

03 System
04 Manajemen Proses
Mengalihkan Bisnis Prototyping
Sistem
 Accounting Information System & Internal Control

01
Purchasing
Prewritten Software
01. Purchasing Prewritten Software Accounting Information System & Internal Control

A major problem with canned software:

➢ It often does not meet all of a
company’s information needs.
➢ Can be overcome by modifying the
canned software.
• Usually best done by the
vendor.
• Unauthorized modifications
may render the program
unreliable and unstable.
01. Purchasing Prewritten Software Accounting Information System & Internal Control

Application Service Provider (ASPs)

✓ ASPs host Web-based software and deliver it to clients over the
Internet.
✓ Companies don’t have to buy, install, or maintain canned software;
they simply “rent” it.
ADVANTAGES of ASPs :
❑ Reduction of software costs and administrative overhead.
❑ Automated software upgrades.
❑ Scalability as the business grows.
❑ Global access to information.
❑ Access to skilled IT personnel.
❑ Ability to focus on core financial competencies rather than IT.
01. Purchasing Prewritten Software Accounting Information System & Internal Control

Selecting a Vendor

❖ Deciding whether to make or buy software can be made

independently of the decision to acquire hardware, service,
maintenance, and other AIS resources.
❖ And the preceding resources can be bought independently of the
software.
❖ But hardware and vendor decisions may depend on the software
decisions.
01. Purchasing Prewritten Software Accounting Information System & Internal Control

Acquiring Hardware & Software

❖ Once AIS requirements have been defined, the

organization can buy software and hardware.
❖ Companies needing only a PC and some office
software can usually complete their own research
and make a selection.
01. Purchasing Prewritten Software Accounting Information System & Internal Control

Acquiring Hardware & Software

01. Purchasing Prewritten Software Accounting Information System & Internal Control

Request for Proposal (RFP)

When buying large or complex systems, a request for proposal (RFP) should be
prepared:
➢ The RFP is an invitation to bidders to propose a system by a specific date.
➢ Each proposal is evaluated.
➢ Finalists are investigated in depth.

Reviewing Proposal, evaluate :

Hardware Software Vendors

01. Purchasing Prewritten Software Accounting Information System & Internal Control

Approaches to Comparing
System Performace

Benchmark Requirements
Point Scoring
Problem Costing
01. Purchasing Prewritten Software Accounting Information System & Internal Control

Benchmark Problem
✓ The new AIS performs a data processing task with input, processing,
and output jobs typical of what would be required of the new system.
✓ Processing times are calculated and compared.
✓ The AIS with the lowest time is judged most efficient.

Point Scoring
Zorba examined the packages offered by the three vendors and rated
them based on these three criteria. Ratings were from 1–5 with 5
being the highest score.
01. Purchasing Prewritten Software Accounting Information System & Internal Control

Point Scoring
The weighted scores are then computed by multiplying the rating given
to each vendor on each criterion times the weight assigned to that
criterion.

The weighted scores for each company are summed:

✓ Able = 60 points
✓ Baker = 79 points
✓ Cook = 68 points
Based on the preceding scores, the bid would probably be awarded to
Baker Co.
01. Purchasing Prewritten Software Accounting Information System & Internal Control

Requirements Costing
Requirements costing:
❑ Estimates cost of purchasing or developing features
that are not included in a particular AIS.
❑ The total AIS cost is calculated by adding the
acquisition cost to the purchasing and development
costs.
❑ Total cost = cost of system with all required features.
 Accounting Information System & Internal Control

02
Developing
Software In
House
02. Developing Software In House Accounting Information System & Internal Control

Despite the availability of good canned software,

many organizations develop their own because:
✓ Their requirements are unique; or
✓ Their size and complexity necessitates a
custom package.
Developing custom software is difficult and error
prone and consumes much time and resources.
02. Developing Software In House Accounting Information System & Internal Control

The most difficult hurdles: When contracting with an outside

organization, maintain control over
❑ Lack of time.
development and observe the following
❑ Complexity of desired guidelines:
system.
➢ Carefully select a developer
❑ Poor requirements and ➢ Sign a contract to clearly define
systems planning.
responsibilities
❑ Inadequate communication ➢ Plan and monitor each step
and cooperation between
departments and users. ➢ Maintain effective and frequent
communication
❑ Lack of qualified staff.
➢ Control all costs
❑ Poor senior executive
support.
 Accounting Information System & Internal Control

03
Outsource The
System
03. Outsource The System Accounting Information System & Internal Control

Outsourcing is hiring an outside company to handle all or part

of an organization’s data processing activities.
In a mainframe outsourcing agreement:
✓ The outsourcers buy the client’s computers and hire all or
most of the client’s employees.
✓ Then operate and manage the entire system on the
client’s site or migrate it to the outsourcer’s computers.
✓ Many of these contracts have terms of 10 or more years
and cost from hundreds of thousands to millions of
dollars a year.
03. Outsource The System Accounting Information System & Internal Control

Examples Outsourced Activities

Installation Training Maintenance

Technical
Help desk
Support
03. Outsource The System
Benefits of Outsourcing
➢ Provides a business solution
➢ Asset utilization
➢ Access to greater experience
and more advanced
technology
➢ Lower costs
➢ Improved development time
➢ Elimination of peaks-and-
valleys usage
➢ Facilitation of downsizing
Accounting Information System & Internal Control
Risks of Outsourcing
✓ Inflexibility
✓ Loss of control
✓ Reduced competitive
advantage
✓ Locked in system
✓ Unfulfilled goals
✓ Poor service
✓ Increased risk
 Accounting Information System & Internal Control

04
Prototyping
04. Prototyping Accounting Information System & Internal Control

Prototyping is an approach to systems design in which a

simplified working model of a system is developed.
➢ The prototype (first draft) is built quickly at low cost
and provided to users for experimentation.
➢ Playing with the prototype allows users to determine
what they do and do not like.
➢ Developers modify the system in response to user
comments and re-present it to them.
➢ The iterative process continues until users are satisfied
that the system meets their needs.
04. Prototyping Accounting Information System & Internal Control

Four Steps Developing A Prototype

01 03
Identify basic Repeated
requirements 02 iterations
Develop an
04
initial prototype Use the system
04. Prototyping Accounting Information System & Internal Control

FIRST STEP
The first step is to identify basic
requirements by meeting with users to
agree on the size and scope of the system
and decide what it should include and
exclude.
The developer must ensure:
❑ User expectations are realistic.
❑ Their basic information requirements
are met.
The designer uses the information
requirements to develop cost, time, and
feasibility estimates for alternative AIS
solutions.
04. Prototyping Accounting Information System & Internal Control

The second step involves developing an initial

SECOND STEP
prototype that meets the agreed-on
requirements.
Users must see and use tentative versions of :
✓ Data entry display screens
✓ Menus
✓ Input prompts
When the prototype is finished, the
✓ Source documents
developer returns to the users and
They must also: demonstrates the system.
➢ Respond to prompts Users are instructed to:
➢ Query the system ❖ Experiment.
➢ Judge response times ❖ Comment on what they do and do
➢ Issue commands not like.
04. Prototyping Accounting Information System & Internal Control

THRID STEP
The third step involves repeated
iterations of:
• Users identifying changes.
• Developers making the
changes.
• The system being turned back
to users for next round.
This step continues until users are
satisfied—usually 4 to 6 iterations.
04. Prototyping Accounting Information System & Internal Control

FOURTH STEP

Half of the prototypes are turned into fully functional systems

referred to as operational prototypes.To make them
operational, the developer must:
➢ Add needed controls.
➢ Improve operational efficiency.
➢ Provide backup and recovery.
➢ Integrate the prototype with the systems with which it
interfaces.
04. Prototyping
Advantages of Prototyping
• Better definition of user needs
• Higher user involvement and
satisfaction
• Faster development time
• Fewer errors
• More opportunity for changes
• Less costly
Accounting Information System & Internal Control
Disadvantages of Prototyping
❖ Significant user time
❖ Less efficient use of system
resources
❖ Incomplete system
development
❖ Inadequately tested and
documented systems
❖ Negative behavioral reactions
❖ Never-ending development
 Accounting Information System & Internal Control

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