Question

Explain all 5 (FIVE) stages of Systems Development Life Cycle (SDLC) when developing an accounting system. In addition, describe the accountant’s roles in each of the phase. (Hint: 25 marks for explanation of SDLC phases + 5 marks for description of accountant’s roles in each phase = 25 marks. Hence a total of 50 marks)

Answer 1

Introduction:

Money is like blood for business, to manage money we require accounting principles and rules. Now a days changing takes place very frequently. So we required SDLC for paperless work. SDLC came into existance due to change in business environment like change in technology, size of organisation, and structure of organisation.

There are five phases of Systems Development Life Cycle for developing an accounting system.

• Stage 1- System Planning
• Stage 2- System Analysis
• Stage 3- System Design
• Stage 4- System Implementation
• Stage 5- System Operation

Stage 1- System planning: This stage take place with system master plan. Here one should co-ordinates the development of project and the company' long term goals and long term plans. Employees and management has to involve in strategic plansfor identification of new markets, neline of business, new line of products and most important recruiting skilled workforce for maintence of this system.

Stage 2- System Analysis: Mainly it respond to a request of management so examine the existibg system and its environment to identify other improvement. System developer has to understand needs before solutions can be formulated. System must provide these three informations like problem solving, new equipments and new technology.

Stage 3- System design: While designing system its must involve users and professionals for better use. One should choose options either Embark on internet developments or Buying a package from outside.

Stage 4-System implementation: Implementation take place by following process

• Develop an implement and conversion plan must need for complexity and importance of this phase
• Install or buy new hardware and software
• Train pesonnel for existing workers or hire new emplyees who have skills of using this system.
• Test system for any modifications
• Complete documentation
• Convert from old to new system
• Develop operation system send final report to IS Steering Committee

Stage 5- Syytem Operation: After implementing system companies should look fine tune and post implementation review. Post implementation include appraisal of new system, whether it meets companies objectives and needs. Go for periodical review and modify the system if required.

Accountant’s roles in each of the phase:

1. System planning:

• Accountants are expertise for feasibility stusy of project during planning process.
• Auditors plays vital role for reducing unnecessary development costs.
• A careful system planning is for cost effective activity for reducing risk.

2. System Analysis:

• The accountants's expertise makes hem important players in desiginig of systems
• It is intellectual process with fact gathering
• Accontants ahs to control internal standards.
• Audit tril requirement has to done by accountants

3. System Design:

• Accontants has to look up weak points of system and eleminate them as well as marked on strengths.
• System must design by double entry rule the is conceptual, professionals are responsible for the physical system.
• The audit ability of a system depends in part on its design characteristics.

4. System Implementation:

• Accountants are implemented on newly designed system
• Accountants has to conduct follow up studies
• Acquiring resource for new system and providing training for existing workers or hire new workforce who have already have skill of using SDLC.
• Conducting floow up for determining whethe new system working according to companies needs and objectives.

5. System Operation:

• Accountat has to looks up for any modification of system by operating proerly
• Periodic revies of system and control standards and maintenance of system.
• Accountants are main users of system.