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  System Development


Systems development is the process of defining, designing, testing, and implementing a new software application or program. It could include the internal development of customized systems, the creation of database systems, or the acquisition of third party developed software. Written standards and procedures must guide all information systems processing functions. The organization’s management must define and implement standards and adopt an appropriate system development life cycle methodology governing the process of developing, acquiring, implementing, and Maintaining computerized information systems and related technology.

Examination Objectives:

That determine if the board and management have established and maintained effective systems development methodology is accomplished through the following examination objectives:

• Board and Management Oversight – Assess the adequacy of systems development, oversight by examining related policies, procedures, and methodology.

• Risk Assessment – Determine the level of systems development activities existing within the institution.

• Internal Controls—evaluate the effectiveness of preventive and detective controls designed to identify deficiencies on time. The internal audit function should identify systems development as an area for evaluation and review.

Examination Procedures:

Examination activities should be based on the criticality and complexity of the business functions present at the institution. The examination should begin with a review of internal and external audit activities and risk assessments for systems development. At a minimum, the Essential Practices for Systems Development should be clearly documented and functioning within the internal control environment.

System development in Viet Nam:

Viet Nam has become an attractive destination for processing exported software and can supply foreign companies with many advantages such as low cost, skillful labor force, and political stability. American, European, and Japanese companies gradually consider Viet Nam as the best place to process software. Many Indian software companies taking advantage of those things have been set up in Viet Nam. In these cases, several Vietnamese software companies have become high-quality suppliers for their processing software clients. Among that, FPT Software is the most excellent one; its brand name has been spread not only in Viet Nam but also in foreign countries. There are about 2000 staffs in FPT have been working with foreign countries including multi-country companies like IBM.


According to foreign experts, domestic software market is really potential. The potential power in foreigners’ eyes can be proved by technology development strategy in 2011 – 2020. It is said that Vietnamese target is building a Scientific and Technological Enterprise System with the amount of 3,000 – 10,000 enterprises. At present, Viet Nam is going to promote Information Technology Application as the new key of production resource for economy.

These years Viet Nam has been applying Information Technology to many main faculties and fields to raise and develop Electronic government, Electronic Company, Electronic enterprise. Therefore, to compare with other countries in Asian, Department of Information Technology has an outstanding development gradually becoming the key industry with 20-25% / year growth rate, 7 – 8 millions USD income in 2011. Beside the application, to develop high-quality and knowledgeable human resource for I.T, Viet Nam is also running a strategy to develop I.T by high-tech industrial zones, software centers.

Illegal software in Viet Nam:

According to Business Software Alliance (BSA), 81% computers in Viet Nam are using illegal software. This number had decreased 2% than 2010 (83%). The total amount of the value of illegal software in Viet Nam is estimated at 395 millions USD, decreased 4% than last year. Mr. Tarun Sawney, BSA senior director for anti-piracy in Asia, said “The effective results of decreasing piracy rate have shown that the hard efforts of Vietnamese government. However, there are many things Viet Nam has to do. At the moment, Viet Nam still faces many difficulties in decreasing piracy rate to be equal to the area rate (60%) or world rate (42%).”


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