Controls for System Development

These flashcards cover the key concepts related to system development and maintenance in financial accounting, including the software development life cycle, methods of data gathering, and the implications of cloud accounting.

What is the main purpose of system development and maintenance in financial accounting?

To ensure that financial accounting processes work as intended.

What are the stages of the Software Development Life Cycle (SDLC)?

1. System Analysis, 2. Conceptual Design, 3. Physical Design, 4. Implementation & Conversion, 5. Operation & Maintenance.

What happens during the System Analysis phase of the SDLC?

Current system is studied, and information about system needs and costs is gathered.

What are common methods of gathering data during systems analysis?

Interviews, questionnaires, observations, and system documentation.

What is Agile Software Development?

A method where software is developed in smaller chunks and tested continuously in an iterative and collaborative manner.

How does the implementation and conversion phase ensure successful system transition?

By writing, testing, and documenting programs and procedures to ensure the organization’s personnel can operate the new system.

What are possible IS solutions for obtaining new software?

1. Purchase prewritten software, 2. Outsource system/software development, 3. Develop custom software in-house.

What are the pros of using Software as a Service (SaaS-Cloud)?

Eliminates customization and maintenance costs, avoids large upfront expenses, and allows centralized access from anywhere.

What are the potential cons of adopting SaaS solutions?

Risk of losing company data if the vendor becomes insolvent, potential insufficient service level agreements, and data ownership issues.

What is the significance of involving end users in the system development process?

To ensure that the system is meeting requirements and to increase user 'buy-in'.

What is the impact of cloud accounting on financial accounting processes?

It allows easy access to client files, more frequent feedback from accountants, and automation of tasks like invoicing.

What is involved in a feasibility study during the system analysis phase?

Assessing economic, technical, and legal feasibility of the proposed system.

What are the differences between internal and external hardware sources?

Internal sources offer better control and customization but are limited in capacity; external sources have variable costs and less control but additional capacity.