Dac3193 - Accounting Information System II

DAC3193 ACCOUNTING INFORMATIO N SYSTEM II
CHAPTER 5: SYSTEM DESIGN
INTRODUCTION
Design phase focus on the development of new system with the requirements of user. The Design stage describes how the proposed solution is to be developed. The solution design is specific to the systems technical environment and the tools to be used in constructing the system. The results of this stage will be inputs to the Execute and Implement stages. Design and development process of new products
The primary objective of the design phase is to create a design that satisfies the agreed application requirements. In the design phase the SDLC process continues to move from the "what" questions of the analysis phase to the "how" questions. The requirements prototype that was developed earlier during the analysis phase is gradually improved and extended to include all the specified functions of the application.
OBJECTIVE DESIGN PHASE
PURPOSE OF DESIGN PHASE

Detailed requirements are transformed into detailed specifications for the system to guide the work of the Execute stage. For complex projects there may be an iterative relationship between the Design and Execute stages. Infrastructure architecture decisions are made to address how the system will meet the defined functional, physical, interface, information protection and data requirements.
It is the most crucial phase in the development of a system. The logical system design arrived at as a result of system analysis and is converted into physical system design.
In the design phase the SDLC process continues to move from the what questions of the analysis phase to the how . The logical design produced during the analysis is turned into a physical design - a detailed description of what is needed to solve original problem.
Input, output, databases, forms, codification schemes and processing specifications are drawn up in detail.
In the design stage, the programming language and the hardware and software platform in which the new system will run are also decided. Data structure, control process, equipment source, workload and limitation of the system, Interface, documentation, training, procedures of using the system, taking backups and staffing requirement are decided at this stage.
DESIGN REQUIREMENTS
RESEARCH: The design process begins with research. Almost all projects require the builders or makers to ask a series of questions--of themselves or clients--about the purpose of the project and the needs to fill. For example, architectural designers or home builders ask clients questions concerning the size of interior spaces, the types of people for whom the building is being built and any custom-tailored requests. Questions of style come into play during this phase as well. Other questions during the research phase concern a project's budget and time line for completion. The maker or client may examine similar projects that have been successfully completed.
CONCEPTUALIZATION
The conceptualization phase of the design process involves outlining the project. During this phase, designers may have a list of features or requirements that the project will include. They conduct brainstorming sessions to generate additional ideas. Some designers draw a rough paper-and-pencil or computer-generated sketch of what the result will look like, encompassing all project requirements and features. When conceptualizing, designers often modify the rough sketch or outline to satisfy a change in needs or preferences from clients.
DESIGN DEVELOPMENT
The design development phase involves a closer, detailed look at the project. This phase involves creating detailed plans, drawings and drafts and devoting attention to each feature or specification. For example, architectural designers and builders use computer-aided design programs to model a new building to scale, ensuring the design, measurement and placement of doors, stairways and hallways. Art project designers, such as graphic and logo design artists, construct several drafts or proofs. Design development allows additional feedback from clients and last-minute changes to be made and approved. During this phase, designers or builders often assess final costs for the project.
DEVELOPMENT AND COMPLETION

The development stage involves creating and building the project itself. The designer gathers supplies to complete the project. Large designs and projects require continual involvement from all team members, including project managers, leaders and engineers, to ensure work goes according to plan. An architectural project may require on-site visits from a property owner to ensure satisfaction. Any last-minute changes or added requirements during this stage might result in additional expenses. When development is completed, the designer evaluates the project and shows the result to clients.
CODING
The system design needs to be implemented to make it a workable system. his demands the coding of design into computer language, i.e., programming language. This is also called the programming phase in which the programmer converts the program specifications into computer instructions, which we refer to as programs. It is an important stage where the defined procedures are transformed into control specifications by the help of a computer language. The programs coordinate the data movements and control the entire process in a system. A well written code reduces the testing and maintenance effort. It is generally felt that the programs must be modular in nature. This helps in fast development, maintenance and future changes, if required. Programming tools like compilers, interpreters and language like c, c++, and java etc., are used for coding .with respect to the type of application. The right programming language should be chosen
SYSTEM DESIGN SPECIFICATION

The System Design Specification (SDS) is a complete document that contains all of the information needed to develop the system. The major sections of the SDS should be: 1. Introduction
2. Project Scope
3. System Design
4. Component and Process Design
5. Data Design
6. User Displays and Output Reports
7. System Files
8. Prototype Description
9. Prototype Test Procedures
10. Prototype Analysis
11. System Development and Project Management Schedules 12. Special Notes
13. Project Extensions
14. Appendices
ACCOUNTANT ROLES IN DESIGN PHASE

Accountants must understand the entire systems development process, because they are involved in several ways:
Helping to specify their needs. As members of the development team. As auditors after the fact.
Accountants also help keep the project on track by:

Evaluating and measuring benefits. Measuring costs. Ensuring the project stays on schedule.
ACCOUNTANT ROLES IN DESIGN PHASE
Effective systems analysis and design can ensure that developers:

Correctly define the business problem. Design the appropriate solution.
INTRODUCTION
The crucial phases of the SDLC include: Systems analysis to define the new systems requirements (discussed in Chapter 18). The phases discussed in this chapter, which include:
Conceptual systems design Physical systems design Systems implementation and conversion Operation and maintenance
CONCEPTUAL SYSTEMS DESIGN

In the conceptual systems design phase, a general framework is created for implementing user requirements and solving the problems identified in the analysis phase. The three main steps are: Evaluate design alternatives. Prepare design specifications. Prepare the conceptual systems design report.
Conceptual Systems Design

Evaluate Design Alternatives
Systems Analysis
Prepare Design Specifications
Prepare Conceptual Systems Design Report
Physical Design
Implementation and Conversion
Operation and Maintenance
Systems Analysis
Physical Design

Evaluating design alternatives There are many design decisions that must be made. For example:
Should a document be hard-copy or sent by EDI? Should the company use a large centralized mainframe or some form of distributed processing? What form should data entry take, e.g., keyboard, optical character recognition, POS devices?

Also, there are many ways to approach the systems development process:
Packaged software In-house development End-user development Outsourcing
The company also chooses between:

Modifying or enhancing existing software Replacing existing software Reengineering its business processes

The design team should identify a variety of design alternatives and evaluate each with respect to:
How well it meets organizational and system objectives How well it meets user needs Whether it is economically feasible Its advantages and disadvantages
The steering committee evaluates the alternatives. Click here to view some of the design considerations and alternatives from Table 20-1 in your textbook.
Design Considerations
Systems Analysis
Physical Design

Prepare design specifications
Once a design has been selected, the project team develops the conceptual design specifications for the following elements:
Output
Because output is what goes to the user and the system must be designed to meet user needs, the output specifications are prepared first.

Output Data storage
How will data be stored to produce the desired outputs?

Output Data storage Input
What types of data must be entered to produce the desired outputs?

Output Data storage Input How will data be processed and in what Processing procedures and operations
sequence to produce the desired outputs?
Systems Analysis
Physical Design

Prepare the conceptual systems design report A conceptual systems design report is prepared at the end of the conceptual design phase to:
Guide physical system design activities. Communicate how management and user information needs will be met. Help the steering committee assess system feasibility.

The main component is a description of one or more recommended system designs. This description contains:
The contents of each output, database, and input. Processing flows and the relationships among programs, files, inputs, and outputs. Hardware, software, and resource requirements. Audit, control, and security processes and procedures. A discussion of assumptions or unresolved problems that might affect the final design.
INTRODUCTION
The crucial phases of the SDLC include: Systems analysis to define the new systems requirements (discussed in Chapter 18). The phases discussed in this chapter, which include:
Conceptual systems design Physical systems design Systems implementation and conversion Operation and maintenance
PHYSICAL SYSTEMS DESIGN

During the physical systems design phase, the company determines how the conceptual AIS design is to be implemented.
The broad, user-oriented requirements of conceptual design are translated into detailed specifications used to code and test computer programs. Phases include:
Designing output Creating files and databases Designing input Writing computer programs Developing procedures Building in controls
Systems Analysis
Physical Systems Design
Output Design
File and DB Design
Input Design
Program Design
Procedures Design
Controls Design
Systems Analysis
Output Design
File and DB Design
Input Design
Program Design
Procedures Design
Controls Design

Output design
The objective of output design is to determine the nature, format, content, and timing of printed reports, documents, and screen displays.
Requires cooperation between users and designers.

Important design considerations include: Use of the output

Who will use it and why? When is it needed? What decisions will it facilitate?

Important design considerations include: Use of the output Output medium

Paper Screen Voice response Diskette Microfilm Other

Important design considerations include: Use of the output Output medium Output format
Should select the format that clearly conveys the most information. Could be: Table Narrative Graphic

Important design considerations include: Use of the output Output medium Output format Pre-printed
Should paper output be on preprinted form and/or turnaround document?

Important design considerations include: Use of the output Output medium Output format Pre-printed Location
Where is the output to be sent?

Important design considerations include: Use of the output Output medium Output format Pre-printed Location Access
Who should be able to access hard-copy and screen output?

Important design considerations include: Use of the output Output medium Output format Pre-printed Location Access Detail
Lengthy output should be preceded by an executive summary and a table of contents. Headings and legends organize data and highlight important items. Detailed info goes in an appendix.

Important design considerations include: Use of the output Output medium Output format Pre-printed Location Access Detail Timeliness
How often should the output be produced?

Outputs usually fit into one of the following four categories: Scheduled reports
Have pre-specified content and format. Are prepared on a regular basis. Examples: Weekly sales analysis Monthly financial statements

Outputs usually fit into one of the following four categories: Scheduled reports Special-purpose analysis reports
No pre-specified content and format. Typically prepared in response to a management request. Example:
Analysis of impact of a government mandate on profitability

Outputs usually fit into one of the following four categories: Scheduled reports Special-purpose analysis reports Triggered exception reports
Have pre-specified content and format. Prepared only in response to abnormal conditions, i.e., the trigger. Example:
Cost overruns

Outputs usually fit into one of the following four categories: Scheduled reports Special-purpose analysis reports Triggered exception reports Demand reports
Have pre-specified content and format. Prepared only on request.

AIS developers prepare sample outputs and users evaluate them to ensure they are complete, relevant, and useful. Modifications are made as needed to ensure acceptability. Many organizations require users to sign off on these documents before proceeding through the SDLC.
Systems Analysis
Output Design
File and DB Design
Input Design
Program Design
Procedures Design
Controls Design
Systems Analysis
Output Design
File and DB Design
Input Design
Program Design
Procedures Design
Controls Design

Input design
Systems designers must identify the different types of data input and optimal input methods. There are two principal types of data input:
Forms Computer screens

Considerations in input design include:
Input medium

Keyboard OCR MICR POS terminal EDI Voice input

Input medium Input source
Where do data originate?

Computer Customer Remote location

Input medium Input source Input format
What format captures the data with the least effort or cost?

Source or turnaround document Screen Source data automation

Input medium Input source Input format Input type
What is the nature of the data?

Input medium Input source Input format Input type Volume
How much data are to be entered?

Input medium Input source Input format Input type Volume Personnel
What functions and expertise do the data entry operators have? Is additional training necessary?

Input medium Input source Input format Input type Volume Personnel Frequency
How often is data to be entered?

Input medium Input source Input format Input type Volume Personnel Frequency Cost
How can costs be minimized without adversely affecting efficiency and accuracy?

Input medium Input source Input format Input type Volume Personnel Frequency What errors are possible? Cost How can they be detected and Error detection and correction
corrected?
PHYSICAL SYSTEMS Preprint as much data as possible. Use appropriate weight and grade of paper. DESIGN

Use bold type, double-thick lines, and shading to highlight different parts of the form. Forms design Use a standard size and one that is consistent with Although input is evolving toward source data automation, forms design requirements is still important. for filing, binding, or mailing. If mailed to external parties, position the address Following are important principles for designing new forms and for placement in a window envelope. evaluating existing ones: Have copies of the form printed in different colors General considerations to facilitate accurate distribution. Include clear instructions for completing the form.

Forms design Although input is evolving toward source data automation, forms design is still important. Following are important principles for designing new forms and Place the form name at the top in bold evaluating existing ones:
General considerations Have the forms pre-numbered Introductory section of form
type.
consecutively. If distributed to external parties, have company name and address preprinted on the form.

Forms design Although input is evolving toward sourcelogically data automation, forms Group together related information (e.g., info about the design is still important. customer, about the Following are important principles info for designing newproduct). forms and Provide sufficient room to record each evaluating existingones:
item. General considerations Order the data items consistent with Introductory section of form the sequence in which the data is Main body of form
likely to be gathered. Use codes and check-offs in places where standardized explanations are likely.

Forms Design Although input is evolving toward source data automation, forms design is still important. Following are important principles for designing new forms and evaluating existing ones: Provide space for:
General considerations Recording final disposition of the Introductory sectionform. of form Main body of form Approval signatures. Conclusion section of form Dates of approval and final
disposition. A dollar or numeric total.
Clearly indicate the distribution of each form.

Designing computer screens It is more efficient to enter data directly into the computer than to record it on paper for subsequent entry. Therefore, its important to design computer screens for input as well as output.

Computer screens are most effective when the following principles are used:
Organize the screen for quick, accurate, and complete entry of the data.
Minimize input by retrieving as much as possible from the system. Example: If the customer number is entered, retrieve his name/address data from the system.
Systems Analysis
Output Design
File and DB Design
Input Design
Program Design
Procedures Design
Controls Design

Input design
Systems designers must identify the different types of data input and optimal input methods. There are two principal types of data input:
Forms Computer screens

Input medium

Keyboard OCR MICR POS terminal EDI Voice input

Input medium Input source
Where do data originate?

Computer Customer Remote location

Input medium Input source Input format
What format captures the data with the least effort or cost?

Source or turnaround document Screen Source data automation

Input medium Input source Input format Input type
What is the nature of the data?

Input medium Input source Input format Input type Volume
How much data are to be entered?

Input medium Input source Input format Input type Volume Personnel
What functions and expertise do the data entry operators have? Is additional training necessary?

Input medium Input source Input format Input type Volume Personnel Frequency
How often is data to be entered?

Input medium Input source Input format Input type Volume Personnel Frequency Cost
How can costs be minimized without adversely affecting efficiency and accuracy?

Input medium Input source Input format Input type Volume Personnel Frequency What errors are possible? Cost How can they be detected and Error detection and correction
corrected?
PHYSICAL SYSTEMS Preprint as much data as possible. Use appropriate weight and grade of paper. DESIGN

Use bold type, double-thick lines, and shading to highlight different parts of the form. Forms design Use a standard size and one that is consistent with Although input is evolving toward source data automation, forms design requirements is still important. for filing, binding, or mailing. If mailed to external parties, position the address Following are important principles for designing new forms and for placement in a window envelope. evaluating existing ones: Have copies of the form printed in different colors General considerations to facilitate accurate distribution. Include clear instructions for completing the form.

Forms design Although input is evolving toward source data automation, forms design is still important. Following are important principles for designing new forms and Place the form name at the top in bold evaluating existing ones:
General considerations Have the forms pre-numbered Introductory section of form
type.
consecutively. If distributed to external parties, have company name and address preprinted on the form.

Forms design Although input is evolving toward sourcelogically data automation, forms Group together related information (e.g., info about the design is still important. customer, about the Following are important principles info for designing newproduct). forms and Provide sufficient room to record each evaluating existingones:
item. General considerations Order the data items consistent with Introductory section of form the sequence in which the data is Main body of form
likely to be gathered. Use codes and check-offs in places where standardized explanations are likely.

Forms Design Although input is evolving toward source data automation, forms design is still important. Following are important principles for designing new forms and evaluating existing ones: Provide space for:
General considerations Recording final disposition of the Introductory sectionform. of form Main body of form Approval signatures. Conclusion section of form Dates of approval and final
disposition. A dollar or numeric total.
Clearly indicate the distribution of each form.

Designing computer screens It is more efficient to enter data directly into the computer than to record it on paper for subsequent entry. Therefore, its important to design computer screens for input as well as output.

Computer screens are most effective when the following principles are used:
Organize the screen for quick, accurate, and complete entry of the data.
Minimize input by retrieving as much as possible from the system. Example: If the customer number is entered, retrieve his name/address data from the system.

Program design
Program development is one of the most time-consuming activities in the SDLC. A structured programming process should be followed:
With structured programming, programs should be subdivided into small, well-defined modules to reduce complexity and enhance reliability and modifiability. Modules should interact with a control module rather than with each other. To facilitate testing and modification, each module should have only one entry and exit point.

To improve software quality, organizations should develop programming standards (rules for writing programs).
Contributes to consistency among programs. Makes them easier to read and maintain.
Consider doing structured program walk-throughs to find incorrect logic, errors, omissions, or other problems.

Program preparation time may range from a few days to a few years, depending on complexity.
Though accountants need not be programmers, they should understand how software is created. The following slides discuss the eight steps for developing software and where these steps take place in the SDLC.

Systems Analysis
STEP ONE: Determine user needs.

Occurs during the systems analysis stage of the SDLC.
Conceptual Design
Physical Design Implementation and Conversion

Systems Analysis
STEP TWO: Develop and document a plan.

Occurs during the conceptual design phase and the beginning of physical design.
Conceptual Design

Systems Analysis
STEP THREE: Write the program code.

Design in increasing levels of detail, known as hierarchical program design. Begun during systems design and completed during systems implementation.
Conceptual Design

Systems Analysis
STEP FOUR: Test the program code. Debugging is discovering and eliminating program errors. Desk checking happens after a program is coded and involves a visual and mental review to discover programming errors. Programs are tested for logic errors using test data that simulates both valid transactions and all possible error conditions.
Conceptual Design

Systems Analysis
Large programs are often tested in three stages:

Individual program modules. The linkages between the module and the control module. The interfaces between the program being tested and other application programs.
Conceptual Design

Systems Analysis
Conceptual Design
Errors need to be found as soon as possible in the development process. Errors discovered late cost 801000% more to fix than those found early.

Systems Analysis
STEP FIVE: Document the program.

Documentation explains how programs work and helps correct and resolve errors. Includes flowcharts, record layouts, E-R diagrams, REA data models, narrative descriptions of the system, etc., organized in a manual.
Conceptual Design

Systems Analysis
STEP SIX: Train program users.

Often uses the program documentation.
Conceptual Design

Systems Analysis
STEP SEVEN: Install the system.

- All components are brought together, and the company begins to use the system.
Conceptual Design

Systems Analysis
STEP EIGHT: Use and modify the system. Program maintenance is a response to any factors that require program revision. Includes requests for:
New or revised reports. Changes in input, file content, or values such as tax rates. Error detection and correction. Conversion to new hardware.
Conceptual Design
Systems Analysis
Output Design
File and DB Design
Input Design
Program Design
Procedures Design
Controls Design

Procedures design
Individuals who interact with a newly-designed AIS need procedures to cover:
Input preparation Transaction processing Error detection and correction Controls Reconciliation of balances Database access Output preparation and distribution Computer operator instructions

Procedures may take the form of:
System manuals User instruction classes Training materials Online help screens

The procedures may be written by:
Development teams; Users; or Teams representing both groups.
Systems Analysis
Output Design
File and DB Design
Input Design
Program Design
Procedures Design
Controls Design

Controls design Improperly controlled input, processing, and database functions produce information of questionable value. Controls must be built into an AIS to ensure its effectiveness, efficiency, and accuracy. These controls should:
Minimize errors. Detect and correct errors when they do occur.
Accountants play a vital role in this area.

Important control concerns that must be addressed include:
Validity
Are all interactions valid?

Validity Authorization
Are input, processing, storage, and output activities authorized by the appropriate managers?

Validity Authorization Accuracy
Is input verified to ensure accuracy? What controls ensure that data is not lost when passing between processing activities?

Validity Authorization Accuracy Security
Is the system protected against: Unauthorized physical and logical access to prevent improper use, alteration, destruction, or disclosure of information and software? Theft of system resources?

Validity Authorization Accuracy Security Numerical control
Are documents pre-numbered to prevent errors or intentional misuse and to detect when documents are missing or stolen?

Validity Authorization Accuracy Security Numerical control Availability
Is the system available as set forth in agreements? Can users enter, update, and retrieve data during those times?

Validity Can the system be modified without affecting Authorization system availability, security, and integrity? Accuracy Are only authorized, tested, and documented Security changes made to the system and data? Numerical control Are resources available to manage, schedule, document, and communicate changes to Availability management and authorized users? Maintainability

Validity Authorization Accuracy Security Numerical control Is processing complete, accurate, Availability timely, and authorized? Maintainability Is it free from unauthorized or inadvertent manipulations? Integrity

Validity Authorization Accuracy Security Numerical control Availability Maintainability Can data be traced from source to output and vice Integrity versa? Audit trail

Physical systems design report At the end of the physical design phase, a physical systems design report is prepared, summarizing what was accomplished. This report serves as the basis for managements decision whether to proceed to implementation.

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DAC3193 ACCOUNTING INFORMATIO N SYSTEM II

CHAPTER 5: SYSTEM DESIGN

OBJECTIVE DESIGN PHASE

PURPOSE OF DESIGN PHASE

PURPOSE OF DESIGN PHASE

PURPOSE OF DESIGN PHASE

DEVELOPMENT AND COMPLETION

SYSTEM DESIGN SPECIFICATION

4. Component and Process Design

6. User Displays and Output Reports

9. Prototype Test Procedures

10. Prototype Analysis

13. Project Extensions

ACCOUNTANT ROLES IN DESIGN PHASE

Accountants also help keep the project on track by:

ACCOUNTANT ROLES IN DESIGN PHASE

Effective systems analysis and design can ensure that developers:

CONCEPTUAL SYSTEMS DESIGN

Conceptual Systems Design

Prepare Design Specifications

Prepare Conceptual Systems Design Report

Implementation and Conversion

Operation and Maintenance

Evaluate Design Alternatives

Prepare Design Specifications

Prepare Conceptual Systems Design Report

Implementation and Conversion

Operation and Maintenance

CONCEPTUAL SYSTEMS DESIGN

CONCEPTUAL SYSTEMS DESIGN

The company also chooses between:

CONCEPTUAL SYSTEMS DESIGN

Evaluate Design Alternatives

Prepare Design Specifications

Prepare Conceptual Systems Design Report

Implementation and Conversion

Operation and Maintenance

CONCEPTUAL SYSTEMS DESIGN

CONCEPTUAL SYSTEMS DESIGN

CONCEPTUAL SYSTEMS DESIGN

CONCEPTUAL SYSTEMS DESIGN

sequence to produce the desired outputs?

Evaluate Design Alternatives

Prepare Design Specifications

Prepare Conceptual Systems Design Report

Implementation and Conversion

Operation and Maintenance

CONCEPTUAL SYSTEMS DESIGN

CONCEPTUAL SYSTEMS DESIGN

PHYSICAL SYSTEMS DESIGN

Physical Systems Design

Conceptual Systems Design

File and DB Design

Implementation and Conversion

Operation and Maintenance

Conceptual Systems Design

File and DB Design

Implementation and Conversion

Operation and Maintenance

PHYSICAL SYSTEMS DESIGN

PHYSICAL SYSTEMS DESIGN

PHYSICAL SYSTEMS DESIGN

Paper Screen Voice response Diskette Microfilm Other