SYSTEMS DEVELOPMENT

AND MAINTENANCE
ACTIVITIES
Participants in System Development

1. Systems professionals are system analysts, system

engineers and programmers who actually build the system.
2. End users are those who the system is built which include
everyone in all levels in an organization.
3. Stakeholders are individuals either within or outside the
organization who have interest in the system but are not
end users.
4. Accountants / Auditors are the professionals who address
the controls, accounting and auditing issues for systems
development.
Why are accountants and auditors involved with System
Development Life Cycle (SDLC)?

1. The creation of the information system entails significant

financial transactions. Accountants and auditors can
provide critical input into the system regarding controls,
integrity, timeliness and other important aspects of
financial transactions.
2. There is a concern on the nature of product or output that
emerge in the SDLC that produces the accounting
information system (AIS). The system should employ
proper accounting conventions and rules, and possess
adequate controls.
How are accountants involved with System Development
Life Cycle (SDLC)?

1. Accountants are users. They must provide a clear picture

of problems and needs to the systems professionals.
2. Accountants participate as members of the development
team extending beyond AIS applications. They may
determine if the proposed system constitutes an internal
control risk.
3. Accountants are involved as auditors. The AIS must be
auditable. Some computer audit techniques require special
features that need to be designed into the system.
INFORMATION SYSTEM ACQUISITION
1. In-house development of systems that are highly tuned to
their unique operations
2. Commercial systems are purchased from software vendors.

Factors that stimulated the growth of commercial software

market:
3. Relatively low cost of general commercial software
4. The emergence of industry-specific vendors
5. Growing demand from small businesses
6. Trend toward downsizing of organizational units
TYPES OF COMMERCIAL SYSTEM
A. Turnkey systems are completely finished and tested
systems that are ready for implementation.
1. General accounting systems are designed to serve a wide
variety of user needs.
2. Special purpose systems which target selected segments
of the economy. ( Ex. Medical field, banking or
government agencies.
3. Office automation systems are computer systems that
improve the productivity of the office workers (Word
processing packages, DBS, Spreadsheet programs,
Desktop publishing systems)
B. Backbone systems provide a basic system structure on
which to build. They come with all the primary processing
modules programmed. (Ex. ERP )
C. Vendor-supported systems are hybrid of custom systems
and commercial software. This is used in health care and
legal services.

ADVANTAGES OF COMMERCIAL SOFTWARE

1. Implementation time – the user does not have to wait.
2. Cost – a single user must wholly absorb in-house
development costs
3. Reliability – reputable commercial software packages are
thoroughly tested before their release to the commercial
market.

DISADVANTAGES: 1. Independence 2. Maintenance 3. Need

for customized systems
System Development Life Cycle (SDLC)
1. System planning has the objective of linking individual
system projects or applications to the strategic objectives of
the firm.
Strategic system planning involves the allocation of system resources at
the macro level with a time frame of 3-5 years.

Project planning involves the allocation of system resources to

individual applications within the framework of the strategic plan.

2. System analysis is the foundation of for the rest of the

SDLC. It involves survey, gathering facts, analysis of the
results and the user’s needs and issuance of the system
analysis report to the management.
3. Conceptual systems design provides several alternative
conceptual systems that satisfy the system requirements
identified during the system analysis.
The auditability of the system depends in part of its
design characteristics. Some computer auditing techniques
should include special audit features.

4. System evaluation and selection is an optimization process

that seeks to identify the best system which involves
detailed feasibility study and cost-benefit analysis.

5. Detailed design produces a detailed description of the

proposed system that both satisfies the system
requirements identified during system analysis and in
accordance with the conceptual design.
6. System programming and testing involves selection of
programming language that is suitable to the application.
Testing should be done offline before deploying online.
The auditor may verify system personnel and projects
used in testing procedures.

7. System implementation is an phase when database

structures are created and populated with data, equipment
is purchased and installed, employees are trained, the
system documented and the new system is installed.

8. Systems maintenance involves changing systems to

accommodate changes in user’s need.