Test bank accounting information systems by romney

To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com Chapter (new version) MULTIPLE CHOICE A set of two or more interrelated components that interact to achieve a goal is: a) A system b) An accounting information system c) Data d) Mandatory information This results when a subsystem achieves its goals while contributing to the organization's overall goal a) Goal conflict b) Goal congruence c) Value of information d) Systems congruence Goal conflict may result when a) A decision or action of a subsystem is inconsistent with the system as a whole b) A subsystem achieves its goals while contributing to the organization's overall goal c) Duplicate recording, storage and processes are eliminated d) The data exceeds the amount the human mind can absorb and process Facts that are collected, recorded, stored and processed by an information system a) Information b) Data c) Systems d) Mandatory information Information is a) What happens when the data exceeds the amount the human mind can absorb b) The benefit produced by the information minus the cost of producing it c) Facts that are collected, recorded, stored, and processed by an information system d) Data that have been organized and processed to provide meaning to a user Data are a) facts entered, stored, and processed by an information system b) processed output that is useful to decision makers c) another word for information d) quantitative facts that are not qualitative by nature Which of the following statements below shows the contrast between data and information? a) Data is the output of an AIS To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com b) Information is the primary output of an AIS c) Data is more useful in decision-making than information d) Data and information are the same Information is a) basically the same as data b) raw facts about transactions c) potentially useful facts when processed in a timely manner d) data that has been organized and processed so that it's meaningful Humans can absorb and process only so much information Information occurs when those limits are passed a) overload b) excess c) anxiety d) discretion 10 The value of information can best be defined as a) how useful it is to decision makers b) the benefits produced by possessing and using the information minus the cost of producing it c) how relevant it is d) the extent to which it maximizes the value chain 11 The benefit produced by the information minus the cost of producing it a) Goal congruence b) Information c) Information overload d) Value of information 12 An accounting information system (AIS) processes to provide users with a) data; information b) data; transactions c) information; data d) data; benefits 13 How many components are found in an AIS? a) three b) four c) five d) six 14 An accounting information system in part consists of To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com a) b) c) d) People, hardware and programs Information, programs and computers People, procedures, data, software and information technology infrastructure Internal controls and accounting records 15 Information that reduces uncertainty, improves decision makers' ability to make predictions, or confirms or corrects their prior expectations, is said to be a) Complete b) Relevant c) Reliable d) Timely 16 Information that is free from error or bias and accurately represents the events or activities of the organization is a) Relevant b) Reliable c) Verifiable d) Timely 17 Information that does not omit important aspects of the underlying events or activities that it measures is a) Complete b) Accessible c) Relevant d) Timely 18 When two knowledgeable people acting independently each produce the same information, this information is said to be a) Complete b) Relevant c) Reliable d) Verifiable 19 Data must be converted into information to be considered useful and meaningful for decision-making There are six characteristics that make information both useful and meaningful If information is free from error or bias and accurately represents the events or activities of the organization, it is representative of the characteristic of a) Relevancy b) Timeliness c) Understandability d) Reliability 20 The primary consideration when producing this type of information is that its benefits exceeds its costs a) Discretionary information b) Essential information To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com c) Mandatory information d) Value of information 21 An AIS is a system of six interrelated components that interact to achieve a goal One of these components, which includes both manual and automated activities that involve collecting, processing, and storing data, is known as a) Information or data b) Procedures and instructions c) Software d) Information technology infrastructure 22 An accounting information system must be able to perform which of the following tasks? a) collect transaction data b) process transaction data c) provide adequate controls d) all of the above 23 Which of the following is not an example of a common activity in an AIS? a) buy and pay for goods and services b) sell goods and services and collect cash c) summarize and report results to interested parties d) recording of sales calls for marketing purposes 24 Which of the following is not one of the components of an AIS? a) Internal controls and security measures b) People c) Procedures and instructions d) Software and hardware 25 An AIS must be able to fulfill three important functions in any organization One such function is the collecting and storing of data about activities performed by the organization One group that relies on both the adequate collection and transformation of data for decision-making purposes for an organization is a) management b) interested outsiders c) competitors d) the government 26 The primary objective of accounting is to a) implement strong internal controls b) provide useful information to decision makers c) prepare financial statements d) ensure the profitability of an organization To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com 27 The Financial Accounting Standards Board (FASB), in its Statement of Financial Accounting Concepts No 2, has defined accounting as a) an information identification, development, measurement, and communication process b) a way to provide adequate controls to safeguard an organization's assets c) being an information system d) a way to collect and transform data into useful information 28 Which activity below would not be considered to be a "top" accountant work activity? a) process improvement b) input into future product marketing initiatives c) long-term strategic planning d) computer systems and operations 29 The American Institute of Certified Public Accountants (AICPA) has recognized the importance of AIS and the major impact information technology has on the area of accounting To recognize individual CPAs who have met educational and experiential requirements in this area, the group formally created the designation known as a) the Certified Management Accountant b) the Certified Information Technology Professional c) the Certified Internal Auditor d) the Certified Data Processing Professional 30 An analysis conducted by the Institute of Management Accountants shows that the most important activities performed by corporate accountants relate to a) customer and product profitability b) internal consulting c) process improvement d) accounting systems and financial reporting 31 The primary focus of an AIS course, as opposed to other IS courses, is on a) application of information technology b) use of accounting software c) understanding how information technology can be used to improve AIS processes d) preparation of financial statements 32 The AIS must include controls to ensure a) safety and availability of data b) marketing initiatives match corporate goals c) information produced from data is accurate To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com d) both A and C 33 A change in the AIS that makes information more easily accessible and widely available within an organization is most likely to first influence the a) organizational culture b) customer base c) external financial statement users d) production activity 34 The process of creating value for customers is the result of nine activities (five primary and four support) that taken together form a a) value chain b) profitable operation c) successful business d) support system 35 The value chain concept is composed of two types of activities known as a) primary and support b) primary and secondary c) support and value d) technology and support 36 Which of the following is a primary activity in the value chain? a) infrastructure b) technology c) purchasing d) marketing and sales 37 In value chain analysis, what is the activity of arranging the delivery of products to customers called? a) outbound logistics b) inbound logistics c) shipping d) delivery 38 An AIS provides value by a) improving products or services through information that increases quality and reduces costs b) providing timely and reliable information to decision makers c) creating new products d) both A and B To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com 39 In Chapter 1, Figure 1-2 shows the factors that influence the design of AIS The diagram shows a bi-directional arrow between the organizational culture and the AIS The reason for this two-way interchange between organizational culture and AIS is a) that the AIS should not influence the values of the organizational culture b) because the organization's culture influences the AIS, and likewise the AIS influences the organization's culture by controlling the flow of information within the organization c) due to the transfer of managers between the two corporate elements d) the AIS impacts the organization's key strategies 40 The objective of the majority of organizations is to provide value to their customers The activities that support such an objective can be conceptualized as forming a value chain Within this value chain, logistics plays an important role Logistics is both inbound and outbound in nature An example of inbound logistics would consist of a) the activities that transform inputs into final products or services b) the activities that help customers to buy the organization's products or services c) the activities that provide post-sale support to customers d) the activities that consist of receiving, storing, and distributing the materials used as inputs by the organization to create goods and/or services it sells 41 A good example of how an AIS is used to share knowledge within an organization is a) the use of an expert system to help staff identify the relevant experts who can help with a particular client b) the use of laptop computers to access a network for messaging worldwide c) the monitoring of production equipment to watch for defects d) the use of point-of-sale data to determine hot-selling items 42 Within the value chain conceptual framework, organizations also perform a number of other support activities that enable the five primary value chain activities to be performed efficiently and effectively One such support activity is research and development This activity can be identified as a a) firm infrastructure activity b) human resources activity c) technology activity d) purchasing activity 43 Within the value chain conceptual framework, AIS is shown as a support activity The AIS is of value to an organization when it provides accurate and timely information to help support the five primary value chain activities When the AIS provides information in a timely and accurate manner, it stands as an example of a) improved decision making b) improving the quality and reducing the costs of products or services c) improving efficiency d) All of the above To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com 44 A decision situation that is non-routine and for which no established framework exists for making the decision is called a(n) decision a) structured b) semistructured c) unstructured d) strategic 45 A decision that is repetitive, routine and well understood is a) structured b) semistructured c) unstructured d) strategic 46 Which of the following is an example of a strategic planning decision? a) setting financial and accounting policies b) conducting a performance evaluation c) budgeting d) developing human resource practices 47 Decisions about the effective and efficient execution of specific tasks are concerned with a) operational control b) management control c) strategic planning d) tactical planning 48 Budgeting and human resource practices are examples of a) operational control b) management control c) strategic planning d) tactical planning 49 Accounting information plays major roles in managerial decision making by a) identifying situations requiring management action b) reducing uncertainty c) providing a basis for choosing among alternative actions d) all of the above 50 Business activities that pertain to product pricing, discount and credit terms, and identifying the most and least profitable items are part of the activity in the organization's value chain a) service b) marketing and sales To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com c) operations d) inbound logistics 51 A principal focus of AIS is to assist with the decision-making function of an organization The degree of support AIS can provide depends on the type of decision being made Decisions are categorized in terms of the degree of existing structure or the effect of their scope From the items below, select the description that is an example of a semi-structured decision a) selecting basic research projects to undertake b) setting a marketing budget for a new product c) extending credit to an established customer d) hiring a senior manager 52 Regarding decision scope, which statement below is true? a) Operational control is concerned with the effective and efficient use of resources for accomplishing organizational objectives b) Management control is concerned with the effective and efficient performance of specific tasks c) Strategic planning is concerned with establishing organizational objectives and policies for accomplishing those objectives d) There is no real correlation between a manager's level in an organization and his or her decision-making responsibilities 53 A well-designed AIS can improve the decision-making function within the organization Which statement below would describe a limitation, rather than a benefit, of an efficient AIS? a) An AIS reduces uncertainty, and therefore accounting information can provide a basis for choosing among alternative courses of action b) An AIS identifies situations requiring management action c) An AIS provides to its users an abundance of information without any filtering or condensing of such information d) An AIS provides information about the results of previous decisions which provides decision makers with feedback that can be used in future decision making 54 A strategic position is important to the success and growth of any organization Harvard professor Michael Porter has identified three basic strategic positions Which statement below is false regarding these basic strategic positions? a) The three basic strategic positions are mutually exclusive of each other b) Part of a needs-based strategic position is to identify a target market c) An access-based strategic position involves serving a subset of customers who differ from other customers in terms of geographic location or size d) A variety-based strategic position involves producing or providing a subset of the industry's products or services To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com 55 A strategic position is important to the success and growth of any organization Harvard professor Michael Porter has identified two basic business strategies Which statement below is false regarding these basic strategies? a) A product differentiation strategy entails adding features or services not provided by competitors to a product so customers can be charged a premium price b) A low-cost strategy entails striving to be the most efficient producer of a product or service c) Sometimes a company can succeed in both producing a better product and achieving low costs d) The two basic strategic positions are mutually exclusive 56 According to Michael Porter, to be successful in the long run, a company must a) deliver greater value to customers and/or create comparable value at a lower cost b) maximize profits c) maximize shareholder value d) both B and C 57 A variety-based strategic position involves a) trying to serve most or all of the needs of a particular group of customers b) serving a subset of customers who differ from other customers c) providing a subset of the industry's products or services d) serving all needs of all customers 58 A needs-based strategic position involves a) trying to serve most or all of the needs of a particular group of customers b) serving a subset of customers who differ from other customers c) providing a subset of the industry's products or services d) serving all needs of all customers 59 An access-based strategic position involves a) trying to serve most or all of the needs of a particular group of customers b) serving a subset of customers who differ from other customers c) providing a subset of the industry's products or services d) serving all needs of all customers 60 The Internet has changed the way many processes are performed in business today The Internet has had a material effect on the five primary characteristics in the value chain and on the strategy adopted by businesses that incorporate use of the Web into their business systems Which statement below is true regarding the Internet relative to a strategic position that a business may adopt? a) Use of the Internet has reduced the power of buyers b) The Internet has increased the barriers to entry in many industries c) Use of the Internet reduces pressure to compete on price d) The most important effect of the development of the Internet in business is the increased importance of adopting a viable business strategy To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com 55 56 57 58 59 60 61 62 63 64 65 66 67 68 A C C D D C Demand for development resources is very high and can backlog AIS projects for several years The development process can be lengthy System developers may not understand the company's business, and consequently the new system may not always meet user's needs The time taken to develop an AIS may make it obsolete when the new system is ready to launch Users may not be able to articulate their demands adequately, and therefore they may be dissatisfied with the finished product Changes to the AIS are difficult to make beyond a certain point, so the AIS remains in a state of "perpetual development" and flux The three methods of obtaining software are purchasing new software, developing software inhouse (either by development staff or by the system end-users themselves), or hiring an outside company to create a system A turnkey system is a software and hardware package, which is complete and ready to be used "at the turn of a key." Vendors for turnkey systems primarily specialize in a particular industry Guidelines when contracting with a third-party company: Carefully select a developer by checking into references and inquiring about reputation and past experiences from other organizations Sign a contract with clearly defined areas of responsibility for the vendor Plan and monitor each step by designing each step of the project in detail, and making frequent checkpoints for monitoring the project Maintain effective communication between the company and the developer Control all costs and minimize cash outflow until the project has been completed and is accepted A help desk consists of analysts and technicians that encourage, support, coordinate, and control end-user activities Some of the duties and activities of the help desk includes the following: Hotline assistance to solve problems Clearinghouse for information, coordination, and assistance Training, maintenance, and support center for the software and hardware Application development assistance center Approval point for development and implementation standards for hardware and software purchases, documentation and application testing, and security issues Controlling access to corporate data by using access matrix controls, etc Evaluating new end-user hardware and software products Outsourcing is the hiring of an outside company to handle all or part of a company's data processing activities There are two main types of outsourcing agreements: Mainframe outsourcing is when the outsourcer buys the client's equipment, hires the client's employees, and operates on the client's site or connects the system to outsourcer's computer Client/server or desktop outsourcing is when a particular service, segment of business, function, or PC support is outsourced Business process reengineering is a thorough analysis and complete redesign of business processes and information systems to achieve dramatic performance improvements Business process reengineering focuses on why the business processes are performed and not on how they are performed The seven basic principles of reengineering are: Organize around outcomes, not tasks Have output users perform the process Have those who produce information process it Centralize and disperse data Integrate parallel activities Empower workers, use built-in controls, and flatten the organizational chart Capture data once, at its source CASE refers to an integrated package of computer-based tools that automate important aspects of the software development process CASE tools can be used to plan, analyze, design, program, and maintain an information system CASE tools not replace skilled designers, but they provide effective support for all phases of the SDLC Advantages Improved productivity, improved program quality, cost savings, improved control procedures, and simplified documentation Disadvantages Incompatibility, cost, and unmet expectations An application service provider (or ASP) is a third-party provider of software to organizations An ASP is Web-based, providing delivery of software to its clients over the Internet An organization that uses an ASP "rents" the software, thus eliminating the tasks of buying, installing, and maintaining the software Among the advantages to using this approach as opposed to the outright purchase of software is a reduction of software costs and administrative overhead, To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com 69 70 71 72 73 74 automated software upgrades, scalability as the organization itself grows, global access to information, access to skilled IT personnel, and ability to focus on core competencies rather than IT requirements The more information an organization provides in its RFP, the better its chances are of receiving a system that meets its requirements It is important to include detailed specifications for the new AIS, including required applications, inputs, outputs, files, databases, frequency and ways of updating files and creating queries, and any unique characteristics or requirements It is also essential that the RFP distinguishes between what are mandatory requirements and what are "desirable but not essential" requirements Custom software is usually developed and written in house Albeit a difficult, error prone, and time- consuming process, many organizations develop their own software because their requirements are unique or their size and complexity necessitate the creation of a custom package As an alternative, third-party developers can be enlisted to develop custom software for an organization Custom software should only be developed when it results in a distinct, competitive advantage to the organization Custom software: tailored to needs; potential competitive advantage; and better control over the process: expensive; difficult to write; error prone; and time consuming Canned software: easy to acquire; fast to acquire; inexpensive; good documentation; updates are inexpensive; and can be tested: not tailored to needs; not as efficient as custom software; does not develop in-house expertise in creation; and developer may go out of business End-user computing is the hands-on development, use, and control of computer-based information systems by users The suitable applications are: Producing simple reports and answers to one-time queries by accessing the company database Sensitivity, statistical, or "what-if" analysis Using spreadsheets or data base software to analyze data Preparing schedules and lists such as depreciation schedule, accounts receivable aging, and loan amortizations User computing has seen an explosive growth because: Users realized that computers can be used to meet more and more information needs Increased access to data created many new uses and needs for information One prediction is that end-user computing may account for 75% to 95% of all information processed in the near future Advantages of end-user computing: The user is involved in the creation, control, and implementation of the software; systems tend to meet user needs; programs can be created timely; end-users creating programming can free up IS resources; and programs tend to be versatile and easy to use Disadvatages of end-user computing: Logic and development errors; inadequately tested applications; inefficient systems; poorly controlled and documented systems; systems incompatibilities; duplication of systems and data; and wasted resources and increased costs Prototyping is the development of a simplified working model (prototype) of an information system It is a "first draft," that is quickly and inexpensively built and provided to users for testing Prototyping is appropriate if: There is uncertainty about the existing AIS The questions to ask are unclear The final AIS is not clearly visualized Speed is an issue There is a high likelihood of failure The system is a decision support system, executive information system, expert system, or information retrieval system Suitable when the system involves experimentation and trial-and-error development Suitable when the system requirements evolve as the system is used Prototyping is not appropriate if: The system is large or complex and serves major organizational components or crosses a number of organizational boundaries Steps in developing a prototype: Identify basic system requirements based on users' needs for what output should be produced Develop initial prototype emphasizing speed and low cost instead of efficiency of operation and demonstrate it for users Make changes needed as identified by users, may take several iterations Develop and use the user-approved system Advantages of prototyping: Better definition of user needs Higher user involvement and satisfaction; faster development time; fewer errors; more opportunity for changes; and less costly to the organization Disadvantages of prototyping: significant user time; less efficient use of system resources; incomplete system development; inadequately tested and documented systems; negative behavioral reactions; neverending development Many companies have come to view information system outsourcing as not merely an IS solution but a true business solution Outsourcing has become a plausible business solution because it allows the organization to focus and put its concentration into its core competencies This transfer To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com of IS responsibilities can be liberating to the organization, as it frees up more resources to devote to the mainstay of its business efforts The viewpoint is that a company should be allowed to what it does best; so the outsourcer is better at IS operations and management, while the organization is better in its areas or core competencies Many organizations treat outsourcers as business partners, working closely to meet the strategic business objectives of the organization An additional benefit of IS outsourcing is asset management Many organizations tie up millions of dollars in their IS efforts, and the attempt to keep up with technological improvements can create a steady drain on cash reserves and other organizational resources One way to significantly improve an organization's cash position and reduce annual expenses is to sell off IS assets, or lease them to the outsourcing organization This can have positive benefits for both the organization and outsourcing vendor as well, as it helps the organization with cash and expense management, and can provide an outsource vendor with the equipment (and even people) it needs to properly service its client 75 The idea behind this BPR principle is to save time, money, and other resources By having the people who produce the information also be responsible for its processing, a more efficient and effective business process is created As an example, with the reduced cost of PC technology, LANs, and WANs, it is feasible for purchasing agents to create and process their own purchase orders on-line by entering them into a database A vendor using EDI can ship goods to a customer but does not have to send a physical invoice When the goods arrive at the customer's warehouse, a receiving clerk can check in the goods by scanning bar codes found on each item The system will automatically check the goods received against the electronic information sent from the vendor, and if goods received match the order, the system can automatically prepare a check and forward the appropriate information to the accounts payable department for approval The net result is that fewer people perform more automated tasks due to their immediate input of information into the system There is also less paper in the process Ultimately, the organization can process orders more quickly, at lower cost, and provide better customer service all at the same time Hence, there is a significant saving of money and time by having the people who produce the information also be responsible for its processing To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com Chapter 20 MULTIPLE CHOICE What is one activity that is not one of the responsibilities of accountants to help keep a project on track? a) b) c) d) ensuring that the project is on schedule evaluating and measuring benefits helping programmers write code monitoring costs Developing a general framework for implementing user requirements and solving problems identified in the analysis phase occurs in which phase of the SDLC? a) b) c) d) conceptual systems design implementation and conversion operations and maintenance physical design Who is responsible for identifying and evaluating a variety of design alternatives? a) b) c) d) design team implementation committee steering committee systems analysts Who is responsible for evaluating the design alternatives and selecting the one that best meets the organization's needs? a) b) c) d) design team implementation committee steering committee systems analysts Which of the following lists represent the sequence of elements in developing the conceptual design specifications? a) b) c) d) input, data storage, processing procedures and operations, and output input, output, data storage, and processing procedures and operations output, data storage, input, and processing procedures and operations processing procedures and operations, input, data storage, and output The project team wants to find the most efficient way to collect data in order to prepare a report on sales per store Which element in design specifications will deal with the decision? a) b) c) d) data collection input output processing procedures One of the purposes of the is to guide physical systems design activities a) b) c) d) conceptual systems design report physical systems design report program design systems analysis report To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com The conceptual design phase is the second phase in the systems design life cycle There are several steps in this phase Which step listed below is not a valid step made in the second phase of the SDLC? a) b) c) d) evaluate design alternatives physical systems design prepare a conceptual systems design report prepare design specifications A part of the conceptual design phase is the evaluation of design alternatives The design team should identify a variety of design alternatives and evaluate them based on several standards Who is responsible for approving the final design that best meets the organization's needs? a) b) c) d) IS management the end-users of the system the steering committee the system analyst design team 10 Once a design alternative has been chosen, the project team is responsible for the development of several conceptual design elements A decision about how often to produce a certain report falls under the category of which design element? a) b) c) d) data storage input output processing procedures and operations 11 At the end of the conceptual design phase the development team prepares a conceptual systems design report What item below is not considered a rationale for issuing the report? a) b) c) d) it can be used to guide physical systems design activities it communicates how management and user information needs will be met it discusses the design alternatives that were not selected for the project it helps the steering committee assess system feasibility 12 The objective of is to determine the nature, format, content, and timing of printed reports, documents, and screen displays a) b) c) d) input design output design report design None of the above are correct 13 Which consideration below is not considered important to output design? a) b) c) d) format location medium source To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com 14 All of the four categories of output have pre-specified content and format except for a) b) c) d) demand reports scheduled reports special-purpose reports triggered exception reports 15 In the file and database design step of the physical systems design phase, it is advantageous to have a) b) c) d) a compatible format easy access timely queries various capabilities 16 In evaluating input design, the design team must identify a) b) c) d) a single view so data can be shared organization and access types of data input and optimal input methods what is relevant, complete, and useful 17 Program development can be improved by a) b) c) d) having special codes for input, output, and file maintenance having users code the programs using standards to find incorrect logic errors, omissions, or other problems using structured programming 18 Structured programming divides the program into small, well-defined modules Which of the following statements below is correct? a) b) c) d) Modules interact with each other directly and also through the control module Modules interact with each other directly Modules interact with only the control module Modules primarily, but not always, interact with the control module 19 Rules for writing programs are called a) b) c) d) applications basic code common routines programming standards 20 Everyone who interacts with the newly designed AIS should follow that answer the who, what, where, why, and how questions related to all AIS activities a) b) c) d) procedures programs standards none of the above To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com 21 Which consideration is not of concern in controls design? a) b) c) d) security alphabetical control audit trail validity 22 The accountant wants to make sure that all cash disbursements are made only to legitimate vendors Which of the following control considerations will deal with this concern? a) b) c) d) security accuracy authorization validity 23 The sales department wants to make sure that all customer inquiries are answered in real-time Which of the following controls design considerations will deal with this concern? a) b) c) d) security authorization accuracy audit trail 24 At what point in the systems development life cycle does the company determine how the conceptual AIS design is to be implemented? a) b) c) d) the conceptual design phase the implementation and conversion phase the physical design phase the systems analysis phase 25 The physical design stage of the SDLC is the point at which the broad, user-oriented AIS requirements of conceptual design are translated into detailed specifications that are used to code and test the various computer programs What is the most timeconsuming activity found in this phase, or even in the entire SDLC process? a) b) c) d) controls design input design output design program design 26 Which consideration listed below applies to file and database design? a) b) c) d) form size format medium organization and access 27 Control design considerations are important to the physical systems design phase of the SDLC One concern of control design relates to the pre-numbering of documents to prevent errors or intentional abuse What is the control design consideration related to this concern? a) accuracy To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com b) audit trail c) numerical control d) validity 28 is the process of installing hardware and software and getting the AIS up and running a) b) c) d) Conceptual design Physical design Systems analysis Systems implementation 29 The first step in developing software is to a) b) c) d) determine user needs develop a plan hire program users write program instructions 30 The initial visual and mental review to discover keying or programming errors is called a) b) c) d) desk checking desk correction desk debugging desk imaging 31 Flowcharts, record layouts, decision tables, and related items are part of a) b) c) d) determining user needs documenting the program testing the program training program users 32 Effective AIS training involves a) b) c) d) instruction on new hardware and software orientation to new policies and operations planning and scheduling so it occurs before system testing and conversion All of the above are correct 33 Step-by-step reviews of procedures or program logic early in the system design that focus on inputs, files, outputs, and data flows are called a) b) c) d) acceptance tests operating tests processing of test transactions walk-throughs 34 The implementation planning and conversion phase of the SDLC incorporates many systems implementation elements One such element is the development and testing of software programs One process used to uncover and eliminate program errors is known as a) black box testing b) debugging c) desk checking To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com d) white box testing 35 What is used as the basis for management to make a "go/no go" decision regarding whether to proceed from the physical design phase to the implementation planning and conversion phase of the SDLC? a) b) c) d) a conceptual system design report a physical systems design report a systems design report an implementation planning design report 36 An implementation plan consists of the various implementation tasks to be accomplished along with a variety of other data and information, such as expected completion dates, cost estimates, and identification of the individuals responsible for each task The plan should also address the area of risks to successful implementation Who is responsible for identifying such risk factors? a) b) c) d) the implementation team the steering committee the systems analysis team the systems development team 37 Within the implementation planning and conversion phase of the SDLC, analysts must before they can a) b) c) d) complete documentation; test software programs install and test software; test software programs test software programs; test the system test the system; select and train personnel 38 A software program must be changed to accommodate new tax rate values What is the name of the process used to make such a change? a) b) c) d) debugging desk checking program maintenance programming 39 Several types of documentation must be prepared for a new system The type of documentation that includes operating schedules and file retention requirements is called a) b) c) d) development documentation operations documentation reference documentation user documentation 40 Inadequate testing can lead to serious systems failures Part of the SDLC process is to adequately test the system being implemented What is the type of test that determines whether a program is operating as desired? a) b) c) d) acceptance testing debugging processing of test transactions program walk-through To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com 41 What is the name for the type of testing where copies of real transaction and file records are used rather than hypothetical ones? a) b) c) d) acceptance testing debugging desk checking program walk-through 42 In , old and new systems are operated simultaneously at different parts of the organization a) b) c) d) direct conversion parallel conversion phase-in conversion pilot conversion 43 A company wishes to introduce and test a new AIS at a branch location before company-wide adoption This approach is called a) b) c) d) direct conversion parallel conversion phase-in conversion pilot conversion 44 Which of the following activities does not pertain to the area of data conversion? a) b) c) d) changing the data content changing the database changing the file format moving files to a new medium 45 "Conversion" in the implementation planning and conversion phase of the SDLC is the task of changing from an old system to a new system What is the name for the type of conversion where the old AIS is immediately terminated as the new AIS is introduced? a) b) c) d) direct conversion parallel conversion phase-in conversion pilot conversion 46 What is a phase-in conversion? a) b) c) d) both the old and new AIS are operated simultaneously elements of the old AIS are replaced gradually with elements of the new AIS the new AIS is introduced into one part of the organization, such as a branch the old AIS is terminated as the new AIS is introduced 47 The data conversion process of the implementation planning and conversion phase of the SDLC can be a tedious and time-consuming task Data files may need to be modified in any of several ways What is an example of modifying the medium of data files? a) adding or deleting fields or records b) changing from tapes to disks To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com c) changing the file format d) changing the storage capacity of the file format 48 There are several steps in the data conversion process that must take place in a certain sequence What is the last step in this process? a) b) c) d) actual data conversion checking the files for completeness and removing any data inaccuracies or inconsistencies documentation of conversion activities monitoring of the system after the actual data conversion 49 Which factor is not investigated during the post-implementation review? a) b) c) d) accuracy benefits completion costs 50 The final step in the SDLC is that of the operation and maintenance of the new system What is the final activity in the systems development process? a) b) c) d) monitoring of the system ongoing maintenance activities preparation of the post-implementation review report user acceptance of the post-implementation review report 51 Some investigation must occur during the postimplementation review process to prepare the report and wrap-up systems development activities An analyst who asks the question, "Does the system produce actual and complete data?" is investigating what postimplementation factor? a) b) c) d) accuracy compatibility goals and objectives reliability SHORT ANSWER 52 How can accountants help in the SDLC process? 53 What factors does a steering committee consider when evaluating different system designs? 54 What is the purpose of a conceptual systems design report? 55 What are the controls design considerations in a new AIS? 56 What is systems implementation? How you plan for it? 57 What are the different types of documentation that should be prepared for a new system? To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com 58 What are the different methods of testing a system? 59 What is a post-implementation review? What are the activities involved in a postimplementation review? 60 What output design considerations should be analyzed as part of the physical system design phase? 61 Briefly discuss structured programming ESSAY 62 What is the conceptual systems design phase? What are the elements of conceptual design specifications? 63 What is the objective of output design? What are the output design considerations? What are the various categories of outputs? 64 What are the different approaches to system conversion? 65 Discuss controls design considerations in the physical systems design phase of the SDLC 66 What are the eight basic steps used to develop and test software programs? To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com ANSWER KEY 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 C A A C C B A B C C C C D C A C D C D A B D D C D B&C C D A A B D D B B A C C B C A B D B A B B C C D A Accountants must first understand the development process, and then realize that they can make a valuable contribution to the development process in several ways As users, accountants can To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com 53 54 55 56 57 58 59 60 61 62 specify their needs and help explain such needs to the development team As members of the development team, they can provide valuable input throughout the design and development process As auditors, they can perform attest functions with a greater working knowledge and enhanced skill sets Accountants should keep the project on track by evaluating and measuring benefits, monitoring costs, and helping to maintain the timetable How well does the design meet organizational and systems objectives? How well does the design meet users' needs? How economically feasible is the design in terms of costs versus benefit? What are the advantages and disadvantages of the design? Do the advantages outweigh the disadvantages? The purpose of this report is to a) guide physical systems design activities, b) communicate how management and user information needs will be met, and c) help the steering committee assess system feasibility Controls design ensures the effectiveness, efficiency, and accuracy of the AIS Accountants have a vital role in this area The important concerns to be addressed are: validity of transactionsauthorization of input, storage, and output activities- accuracy of input and processing activitiessecurity access to system numerical control pre-numbering and accounting of all documents Audit trail - tracing of transactions from source documents to final output and vice versa Systems implementation is the process of installing hardware and software and getting the AIS in place and in use Systems planning consists of: Implementation tasks and person(s) responsible for tasks Setting expected completion dates Cost estimates and variances Identify risk factors that decrease likelihood of successful implementation Strategies for coping with risk factors Complete documentation - three types of documentation must be prepared: Development documentation which includes: System description Copies of output, input, and file and database layouts Program Flowcharts Test results User acceptance forms Operations documentation includes: Operating schedules Files and databases accessed Equipment security and file retention requirements User documentation includes: Procedures manual(s) Training materials There are three methods: walkthroughs, which involve systematic reviews of procedures or program logic at different phases during the SDLC In the early stages of the design process, the focus is inputs, outputs, and files In the later stages, the focus is on program logic and structure Processing test transactions to determine whether a program operates as designed Different types of hypothetical transactions are processed to see if the controls catch various types of errors Acceptance tests, which use real transactions and file records Users develop the acceptance criteria and make the final acceptance or rejection decision A post-implementation review ensures that the new AIS meets planned objectives Any problems uncovered during the review are brought to the attention of the management and the necessary adjustments are made When review is complete, prepare a report The acceptance of the postimplementation review report by users concludes the systems development process Control of the AIS now passes on to the data processing department Two things must be considered regarding system output First, who will use the output? Why users need this type of output, and what decisions will be made based on such output? Second, the medium of the output must be addressed What medium should be used? Should the output be on paper, computer screen, stored as a voice response file, placed on diskette, microfilm, or some possible combinations of these mediums? These are two important considerations that can either "make or break" a system in terms of its successful use Other considerations are: What format (tale, graph, etc)? Should preprinted forms be used? Where should the output be sent? Who should have access to the output? How often should the output be produced? Lengthy output should be preceded by an executive summary and a table of contents Structured programming refers to programs that are subdivided into small, well-defined modules with the goal of reducing complexity and enhancing reliability and modifiability Each module should interact with a control module rather then with each other Proper structured programming dictates that each module should have only one entry and exit point to facilitate testing and modification The conceptual systems design phase involves the development of the general framework for implementing user requirements and solving problems identified in the analysis phase Conceptual design elements include the following elements: Output specifications to meet users' information needs Data storage specifications based on reports that need to be produced, the manner in which To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com 63 64 65 66 data are stored (sequential, random, etc.), the type of database to use, and appropriate field sizes Input specification after output is identified so that the "when, where, and how" of data input are appropriate for the types of output needed Processing procedures and operations specifications are determined after the sequencing and processes for input and data storage are known Output design: The objective is to determine the nature, format, content, and timing of printed reports, documents, and screen displays Design considerations: Use - who will use, why is it needed, what is needed for use Medium - paper, screen, diskette Format - tables, graphs, narratives Preprinted - e.g., purchase orders, checks Location - where sent Access - by whom and to what Detail - summary, table of contents, headings Timeliness - how often Categories of output are: Scheduled reports are prespecified and formatted and prepared regularly Specialpurpose analyses are not prespecified or formatted, but are prepared when management requests data to evaluate an issue Triggered exception reports are prespecified and formatted and prepared in event of abnormal conditions Demand reports are prespecified and formatted and prepared when requested Direct conversion is used when the old system is of no value or is not comparable to the new system This type of conversion carries a high risk of failure Parallel conversion protects the company from error, but it is costly and stressful to process transactions twice Phase-in conversion results in gradual changes over time that also allows resources to be acquired over time However, creating temporary interfaces is costly and gradual changes take time and come at greater expense Pilot conversion implements the system in just one part of the organization that allows problems to be corrected before the system is completely adopted However, the costs of interfaces and running both systems are a disadvantage There are several controls design considerations to be addressed in this phase of the SDLC Validity, authorization, accuracy, access, numerical control, and providing an audit trail are the major items, which must be taken into account in physical design Validity would address a question such as, "Are all system interactions valid?" Authorization could be examined by asking, "Are input, processing, storage, and output activities authorized by the appropriate managers?" Accuracy can be analyzed by asking, "Is input verified to ensure accuracy and what controls are in place to ensure that data passed between processing activities is not lost?" When dealing with access issues, the analyst should ask if there is adequate control over accessing data, and ask the important question, "How is a hacker denied access to a data file?" Asking the question, "Are documents pre-numbered to prevent errors or intentional abuse?" can provide insight about numerical controls Finally, to provide appropriate audit trails, the analyst should ask the question, "Can transaction data be traced from source documents to final output, and vice versa?" It is imperative that controls design be properly implemented in this phase of the SDLC to ensure the success of launching the system and its ongoing use Also , availability and integrity Generally speaking, developers use an eight-step method to develop and test software programs As part of the systems implementation phase of the SDLC, it is important that these steps faithfully are followed by the development team 1) The team should consult with users and write an agreement about software requirements as a way to determine user needs 2) Next, a development plan should be created and documented 3) The overall approach and major processing tasks should be identified on a high level before proceeding to levels of greater detail At that point the activity of writing program instructions can begin 4) After program code has been written, the next step is to test the program This can be achieved in part through debugging and desk checking, along with other types of testing 5) The next thing to be done is to document the program, since this will explain how the program works and assist analysts in correcting and resolving errors 6) Training program users is the beginning of the end of the test phase Program documentation developed in step five will be used at this time 7) The seventh step is to install and use the system At this point the program can be used and program maintenance can take place as needed 8) Use and modify the system Revise existing programs (called program maintenance) ... Goal congruence b) Information c) Information overload d) Value of information 12 An accounting information system (AIS) processes to provide users with a) data; information b) data;... areas of accounting and information systems and technology The AICPA (American Institute of CPAs) has acknowledged the importance and close relationship that accounting and information systems. .. producing this type of information is that its benefits exceeds its costs a) Discretionary information b) Essential information To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com