Question

Case Studv Smart Enterprises Partl: Recently you attended a presentation by Dr Peter, renowned entrepreneur and business leader, who spoke at length about the development of an accounting information systems and, what he referred to as the 'life cycle approach'. After the presentation you returned to your workplace and discussed the virtues of this approach with your boss, Alex. Alex was extremely interested because he has become aware that the current accounting information systems is inadequate for the developing needs of the business. He asked you to do a number of things for him in your 'new role' as the Accounting Information Systems Development Officer. 1. Write a brief report identifying the role that would be expected of the management team in the development and design of a new accounting information system. The underlying issue is really the role you would expect Alex "your boss" to play. 2. Would you expect that the people who will use the new system should have a role in any analysis leading up to, in the selection of and implementation of the new accounting information system should one be selected? 3. Write a clear and comprehensive report on what would be involved in the adoptionof a life cycle approachto adopting a new accounting information system. Specifically identify the stages that would need to be engaged in, and staff likely to be involved. Alex, your boss, also wishes to know whether consultant costs would be incurred?

Answer 1

1. The various roles in Accounting Information System are described below:

• Financial accountants organize financial records for exterior resolution in accordance with GAAP (GAAP: Generally Accepted Accounting Principles)
• Managerial accountants assemble regarding the financial data/records for domestic assessments
• Auditors estimate powers moreover attest to the equality of the financial testimonial
• Accounting managers be in command of all accounting commotion of a business entity
• Tax consultant expand information that replicate tax commitment of the business entity
• Mentor devise provision/stipulations for the AIS (Accounting Information System).

Conclusion: Alex is assumed to play the role of Accounting Manager because an Accounting manager keeps complete authority over the other activities and has command over the other functionalities.

2.Yes, people/firms using new system should have a role in analysis leading for the implementation for new accounting system because of the following reasons:

• The market and its value changes from time to time. Therefore having a dedicated working staff for the implementation of new Accounting Information System is beneficial.
• To stay up to the mark and satisfy the ever growing fast industrial advancements, one must focus on the current features of the legacy Accounting Information System and must recommend for the updated/current Accounting Information System in the market.

Conclusion: This is possible with the help of a professional who is dedicatedly hired for keeping informed to the management regarding the upgrades in Accounting Information System.

3. Lifecycle of AIS

STRATEGIC SYSTEMS . Strategic Planning Ratios and Financial Health . Mergerand acquisition Plans INTERNAL BODY EXTERNAL BODY . Management Admin / supervisor Clients . Suppliers TACTICAL SYSTEMS Third party retailers Customers Business partners * Operational . Monetary Planning . Capital investment . Tax Payment Production Marketing HRM (Human Resource Management) Audit . Engineering OPERATIONAL AND TRANSACTION PROCESSING SYSTEMS . Sales and Marketing . Payroll generation . Inventory Management