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
Accounting Information System
Accounting information Systems
Technology
Accountant's Role in General
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
Accounting information Systems
(AIS)Technology
Accounting information Systems Technology follows three basic
operations:
Input: input devices associated with AIS includes
standard personal computers or workstations running applications;
scanning devices for standardized data entry,
electronic communication devices for EDl and e-commerce etc.
Process: Basic processing is achieved through computer systems ranging
from individual personal computers to large scale enterprise servers.
Output: Output devices include computer displays, printers, and electronic
communication devices for EDl and e-commerce etc.
The output content may encompass almost any type of financial
reports from budgets and tax reports to multinational l financials
statements.
Engr. Md Fazlul Kader
Accountant's Role in General
Major activities:
observation,
measurement, and
communication.
These activities are analytical in nature and draw on several other disciplines
{e.g., economics, mathematics, behavioral science}
Now, the accountant's role has been expanding within
organizations and they are becoming part of management end
decision-making team.
There are two key reasons that accountant should care about new
system projects:
First they cost money- often big bucks.
Second, the quality of the accounting information system is a
function of the process that produces them.
Engr. Md Fazlul Kader
Developing a New accounting Information
System and Accountant's Role
The development of accounting information
systems follows all the five basic phases of
SDLC:
Planning
Analysis
Design
implementation and
operation and maintenance.
Engr. Md Fazlul Kader
Steps of a AIS development
Engr. Md Fazlul Kader
Phases/Sub-phases of a AIS
development
Establishing & recording user requirements
Investigation & feasibility study
Project Management
Developing a solution to fulfill requirements
Initial system design (including controls and security)
Technical information and systems requirements
Specification of hardware and software
Implementing security requirements
Installing/ implementation
Testing
System Conversion and start-up
Post implementation review
Engr. Md Fazlul Kader
Steps of a AIS development
Initial Preparation:
Should clearly define our goals and objectives for the new
information systems.
Following elements also should be considered:
current business plan
Annual operating budget including expenditures for IS
Preliminary cash flow analysis to determine the financial
feasibility of the new system
Formalized policies and practices, updated as appropriate
Complete and accurate historical records
Comprehensive system of internal controls
Adequate infrastructure, or plans to upgrade the infrastructure
Computer-literate personnel, or plans to enhance staff
capabilities Engr. Md Fazlul Kader
Steps of a AIS development
Establishing and Recording User Requirements
This stage includes the following works:
List of the major user requirements
Templates or scripts to guide the work for these tasks
Time and staffing budgets
Initial schedule or time line
Work packets for the team
Define the project deliverables
Tools used
Narrative (written description)
Flowcharts
Diagrams
Other written material
Engr. Md Fazlul Kade
Steps of a AIS development
Accountant role in Establishing and Recording User
Requirements
They answer question such as:
What data should be entered and stored based on user
requirements?
Who should be able to access the data?
How should the data be organized, updated, recorded,
accessed, and retrieved?
How can scheduled and unanticipated information
needs be met?
Engr. Md Fazlul Kader
Steps of a AIS development
Investigation and feasibility study
The purpose of the preliminary investigation is
To define the problem or enhancement accurately
Identify the causes or sources of problem
Determine whether or not the problem or enhancement
identified is worth pursuing
Determine whether that project is feasible, or,
achievable given the organizational resources and
constraints.
Engr. Md Fazlul Kader
Steps of a AIS development
Investigation and feasibility study
Figure : Phases in the cycle including investigation
Engr. Md Fazlul Kader
Steps of a AIS development
Feasibility study
Feasibility study is a user-oriented overview of the proposed
information systems purpose & feasibility.
The feasibility study investigates the problem and the information
needs of the stakeholders.
The feasibility of a proposed solution is evaluated in
terms of its components. These components are:
Economic Feasibility
Technical feasibility
Operational feasibility
Engr. Md Fazlul Kader
Steps of a AIS development
The feasibility study is an evaluation and analysis of the potential
of a proposed project which is based on extensive investigation and
research to support the process of decision making.
Economic Feasibility:
The economic viability of the proposed system.
The proposed projects cost and benefits are evaluated.
Technical Feasibility
The possibility that the organization has or can procure the necessary
technical resources.
It is an evaluation of the hardware and software and how it meets the
need of the proposed system.
Operational Feasibility
The ability, desire and willingness of the stakeholders to use, support,
and operate the proposed computer information systems.
Steps of a AIS development
The accountant’s roles in terms of feasibility study
Preparation of feasibility report
Investigation of the performance/operations of
competing business organizations to assist
management in policy formulation.
Engr. Md Fazlul Kader
Project Management
Figure : Phases related to management controls
Engr. Md Fazlul Kader
Steps of a AIS development
Developing a Solution to Fulfill Requirements
Criteria to develop a solution to fulfill requirements
Easy to implement
Less costly
Ability to generate effective output
Capability to accommodate the dynamic requirements in the mid of
project
The accountant’s roles
has to take an initial note on the expenditure that may be required
to meet the requirements.
has to prepare an initial solution report including budget, time and
the procedures that are urgent to fulfill the requirements.
Engr. Md Fazlul Kader
Steps of a AIS development
Developing a Solution
Steps of a AIS development
Initial System Design
The initial system design is a working version of an
information system or part of the system.
It is only a preliminary model.
The major activities of initial systems design are:
User interface design, data manipulation, and output analysis.
Process design, output design, and output analysis
Data design, input validation & processing
Engr. Md Fazlul Kader
Steps of a AIS development
Figure : System design in operation
Steps of a AIS development
Systems justification and selection in initial system design
Steps of a AIS development
System design is divided between accountants and IT
professionals as follows:
The accounting function is responsible for conceptual systems
The IT function is responsible for physical systems
In conceptual systems, the accountant determines
the nature of the information required,
its sources,
its destination, and
the accounting rules that need to be applied in initial system
design.
Besides, the accountant plays important role regarding
control and security issues of initial system design.
Engr. Md Fazlul Kader
THANK YOU
Engr. Md Fazlul Kader
