Audit Role in Feasibility Studies and Conversions

THIS CHAPTER LOOKS at the auditor’s role in feasibility studies and conversions. These are perhaps the most critical areas of systems implementation, and audit involvement should be compulsory.

In considering the auditor’s role in feasibility studies and conversions, we must consider where they fall in the Systems Development Life Cycle (SDLC). The typical SDLC comprises:

  • Problem definition and feasibility study
  • Analysis and design
  • Language selection
  • Coding
  • Testing and debugging
  • Documentation
  • Conversion
  • Implementation


As previously noted, acquisition of information systems involves, first, definition of a computer strategy including evaluation of the organizational requirements. Second, establishment of the requirements including a thorough examination and evaluation of potential alternative courses of action. Third, the precise specification of the requirements including interfacing all future systems with existing hardware and software constraints, conditions of supply, and future modification. Fourth, evaluation of alternative sources of supply, and finally, the acquisition and installation of the systems. The second stage is typically carried out via a feasibility study.

Factors to be considered in audit involvement in feasibility studies are those surrounding the probability of a successful outcome. These usually focus on the overall desirability of a system from a corporate ...

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