The Institute of Chartered Accountants of Bangladesh

Accounting Information System

Presented By
Engr. Md. Fazlul Kader
Assistant Professor, Dept. of APECE
University of Chittagong, Bangladesh
 Contents

 Developing new Accounting Information

System

Engr. Md Fazlul Kader

 Accounting Information System

 Accounting Information System is the system

that combines the study and practice of
accounting with the design, implementation, and
monitoring of information systems.

Engr. Md Fazlul Kader

 Steps of a AIS development

 Technical Information and System Requirements

 Technical information:
 Engineering, evaluation, and research and development
(R&D) information associated with design, production,
operation, use, and/or maintenance of an equipment ,
machine, process or system.
 To develop a new accounting information system, it is very
necessary to define the technical information and system
requirements effectively.

Engr. Md Fazlul Kader

 Steps of a AIS development

 Technical Information and System Requirements

Figure: Technical requirements phase and other deployment planning phases

 Steps of a AIS development

 Technical Information and System Requirements

 Use case: is a list of steps typically defining interactions
between a role (such as UML) & a system to achieve a
goal.
 Usage Analysis: is any technique for understanding the
usage statistics of something. For example: web statistics
of a website.

Engr. Md Fazlul Kader

 Steps of a AIS development

 Technical Information and System Requirements

 Accountant’s must have the knowledge about the following
technical information & system requirements:
 Hardware requirements
 Software requirements
 Required interfaces
 Functional Capabilities
 Performance Levels
 Safety
 Reliability
 Security/Privacy
 Quality
 Constraints and Limitations
 systems modules
 systems architecture
 Steps of AIS development

 In an accounting system. the steps in the accounting cycle are

dependent upon the system itself.
 In this system, hardware and software play important role.
 Hardware Specification
 Processor speeds
 Primary & Secondary storage capacities and access
capabilities.
 Input-output speeds and capabilities
 Compatibility features
 Modularity features
 Error detection and correction techniques
 Data communication capabilities
 Special features such as multiprogramming and virtual storage
 Maximum allowable downtime as a percentage of total time.
 Steps of AIS development

 Software specifications
 Programming language and compilers
 Utility packages
 Application packages
 Operating system capabilities
 Data management packages
 Steps of AIS development

 Implementing Security Requirements

Security refers to the policies, procedures, and technical measures
used to prevent unauthorized access, alteration, theft, or physical
damage to information systems.
Corporate Systems
Corporate
User(Clients) Communication servers
lines

Unauthorized Tapping
access Sniffing Hacking
Viruses & worms Theft of data
Errors Message Copying data
Viruses & alteration Theft & fraud
Vandalism Alteration of data
worms Theft & Hardware failure
Spyware fraud DoS attacks
Software failure
Radiation
Fig. Contemporary security challenges & vulnerabilities
 Steps of AIS development

 Implementing Security Requirements

 Organization can deploy numerous technologies to prevent
information security breaches.
 Three primary information security areas:
 1. Authentication & Authorization
 Authentication is the process of verifying who you are. Logging on to a PC
with a username and password is authentication.
 Authorization is the process of verifying that you have access to something.
Gaining access to a resource (e.g. directory on a hard disk) because the
permissions configured on it allow you access is authorization.
 2. Prevention and Resistance
 Prevention and resistance technologies stop intruders from accessing intellectual
capital.
 One of the most common defenses for preventing a security breach is a firewall.
 Encryption scrambles information into an alternative form, as a result the person
stealing the information will be unable to read it
 Steps of AIS development

 Implementing Security Requirements

 3. Detection and Response:
 If prevention and resistance strategies fail and there is a security
breach, an organization can use detection and response technologies
to mitigate the damage.
 The most common type of defense is antivirus software
 Accountants role in this stage:
 Performing information system security status
 Performing security assessments
 Participating in the overall risk management process
 Identification & assessment of security mechanism
 Responsible for delivery security services
 Steps of AIS development:
System Implementation/Installation

 System implementations is the process of installing

hardware and software and getting the MIS up and running.
 The implementation phase consists of two phases:
 Construction
 Delivery
 Construction includes
 The selection of h/w, s/w and vendors for the implementation;
 Building and testing the network communication systems;
 Building and testing the databases; writing and testing the
new program modifications;
 Installing and testing the total system from a techinical
standpoint
 Steps of AIS development:
System Implementation/Installation

 Delivery is the process of conducting

 Final system and user acceptance testing;
 Preparing the conversion plan
 Installing the production databases
 Training the users
 Converting all operations to the new system.
Steps of AIS development:
System Implementation/Installation

Figure : Implementation step

 Steps of AIS development:
System Implementation/Installation

 The accountant’s role in this stage

 To establish implementation plans and controls
 To recognize behavioral concerns
 To Review the organization of the project team
 To complete arrangement for selected system
resources in implementation.
 Also he has to assure that resources are not wasted on
unneeded, unwanted, inefficient, or ineffective systems
during implementation.

Engr. Md Fazlul Kader

 Steps of AIS development:
Testing

 It is extremely important that hardware & software be tested

thoroughly.
 Testing an information system can be broken down into four
types of activities:
 Unit testing: Test each program separately. The purpose of such testing is
to guarantee that programs are error free.
 System Testing: test the functioning of the information system as a whole
and verify that all programs in the system work together properly.
 Integration testing: verify that the information system works well with other
systems.
 Acceptance testing: provide the final certification that the system is ready
to be used in a production setting.

Engr. Md Fazlul Kader

THANK YOU

Engr. Md Fazlul Kader