AIS: Chapter 5 Questions

Describe a risk associated with the phased cutover procedure for data conversion.

Incompatibilities may exist between the new subsystems and the yet-to-be replaced old subsystems.

In conducting a cost-benefit analysis, the estimated category that ordinarily would have the least uncertainty as to its precise value is a. the tangible costs. b. the intangible costs. c. the tangible benefits. d. the intangible benefits. e. none of the above because they are equally precise.

a. the tangible costs.

The benefits of the object-oriented approach to systems design include all of the following except a. this approach does not require input from accountants and auditors b. development time is reduced c. a standard module once tested does not have to be retested until changes are made d. system maintenance activities are simplified

a. this approach does not require input from accountants and auditors

Computer operators should have access to all of the following types of documentation except a. a list of users who receive output b. a program code listing c. a list of all master files used in the system d. a list of required hardware devices

b. a program code listing

One-time costs of system development include all of the following EXCEPT a. site preparation. b. hardware maintenance. c. programming. d. hardware acquisition. e. data conversion. f. none of the above because they are equally precise.

b. hardware maintenance.

Which of the following is the most important factor in planning for a system change? a. having an auditor as a member of the design team b. involving top management and people who use the system c. using state-of-the-art techniques d. concentrating on software rather than hardware e. selecting a user to lead the design team

b. involving top management and people who use the system

All of the following individuals would likely be SDLC participants EXCEPT a. accountants. b. shareholders. c. management. d. programmers. e. all of the above.

b. shareholders.

Which statement is correct? a. compiled programs are very susceptible to unauthorized modification b. the source program library stores application programs in source code form c. modifications are made to programs in machine code language d. the source program library management system increases operating efficiency

b. the source program library stores application programs in source code form

A feasibility study for a new computer system should a. include a report by the internal audit department that evaluated internal control features for each planned application. b. provide the preliminary plan for converting existing manual systems and clerical operations. c. consider costs, savings, controls, profit improvement, and other benefits analyzed by application area. d. provide management with assurance from qualified, independent consultants that the use of a computer system appeared justified.

c. consider costs, savings, controls, profit improvement, and other benefits analyzed by application area.

The output of the detailed design phase of the Systems Development Life Cycle (SDLC) is a a. fully documented system report b. systems selection report c. detailed system design report d. systems analysis report

c. detailed system design report

Typically a systems analysis a. results in a formal project schedule b. does not include a review of the current system c. identifies user needs and specifies system requirements d. is performed by the internal auditor

c. identifies user needs and specifies system requirements

At which phase in the SDLC are errors most costly to correct? a. programming b. conceptual design c. implementation d. analysis

c. implementation

User test and acceptance is part of which phase of the SDLC? a. general systems design b. program specification and implementation planning c. implementation d. detailed systems design

c. implementation

What name is given to the time value of money technique that discounts the after-tax cash flows for a project over its life to time period zero using the company's minimum desired rate of return? a. payback method b. capital rationing method c. net present value method d. average rate of return method

c. net present value method

When converting to a new system, which cutover method is the most conservative? a. cold turkey cutover b. phased cutover c. parallel operation cutover d. data coupling cutover

c. parallel operation cutover

Systems analysis involves all of the following except a. gathering facts b. surveying the current system c. redesigning bottleneck activities d. reviewing key documents

c. redesigning bottleneck activities

The TELOS acronym is often used for determining the need for system changes. Which of the following types of feasibility studies are elements of TELOS? a. legal, environmental, and economic b. environmental, operational, and economic c. technical, operational, and economic d. technical, economic, legal, and practical e. practical, technical, and operational f. accounting rate of return method

c. technical, operational, and economic

Which statement is not true? a. An audit objective for systems maintenance is to detect unauthorized access to application databases. b. An audit objective for systems maintenance is to ensure that applications are free from errors. c. An audit objective for systems maintenance is to verify that user requests for maintenance reconcile to program version numbers. d. An audit objective for systems maintenance is to ensure that the production libraries are protected from unauthorized access.

a. An audit objective for systems maintenance is to detect unauthorized access to application databases.

Which of the following steps is NOT considered to be part of this systems survey? a. Equipment sold by various computer manufacturers is reviewed in terms of capability, cost, and availability. b. Interviews are conducted with operating people and managers. c. The complete documentation of the system is obtained and reviewed. d. Measures of processing volume are obtained for each operation. e. Work measurement studies are conducted to determine the time required to complete various tasks or jobs.

a. Equipment sold by various computer manufacturers is reviewed in terms of capability, cost, and availability.

The TELOS study that determines whether a project can be completed in an acceptable time frame is a. a schedule feasibility study. b. a time frame feasibility study. c. an on-time feasibility study. d. an economic completion feasibility study. e. a length of contract feasibility study.

a. a schedule feasibility study.

A disadvantage of surveying the current system is a. it constrains the generation of ideas about the new system b. it highlights elements of the current system that are worth preserving c. it pinpoints the causes of the current problems d. all of the above are advantages of surveying the current system

a. it constrains the generation of ideas about the new system

Which of the following is least likely to be an accountant's role in the SDLC? a. programmer b. user c. consultant d. auditor e. all of these are likely roles

a. programmer

Which of the following represents the correct order in problem resolution? a. recognize the problem, define the problem, specify system objectives, perform feasibility studies, and prepare a project proposal b. define the problem, recognize the problem, perform feasibility studies, specify system objectives, and prepare a project proposal c. recognize the problem, define the problem, perform feasibility studies, specify system objectives, and prepare a project proposal d. define the problem, recognize the problem, specify system objectives, perform feasibility studies, and prepare a project proposal

a. recognize the problem, define the problem, specify system objectives, perform feasibility studies, and prepare a project proposal

Which of the following aspects of a cost-benefit study would have the greatest uncertainty as to its precise value? a. the intangible benefits b. the tangible costs c. the intangible costs d. the tangible benefits

a. the intangible benefits

In the context of the TELOS acronym, technical feasibility refers to whether a. the systems manager can coordinate and control the activities of the systems department. b. an adequate computer site exists for the proposed system. c. the proposed system will produce economic benefits exceeding its costs. d. a proposed system is attainable, given the existing technology. e. the system will be used effectively within the operating environment of an organization.

d. a proposed system is attainable, given the existing technology.

Which of the following is NOT an advantage of commercial software? a. cost b. reliability c. implementation time d. independence e. internal controls

d. independence

Which of the following is NOT a one-time cost? a. site preparation b. data conversion c. software acquisition d. insurance

d. insurance

A commercial software system that is completely finished, tested, and ready for implementation is called a a. backbone system b. vendor-supported system c. benchmark system d. turnkey system

d. turnkey system

A systems development approach that starts with broad organizational goals and the types of decisions organizational executives make is called a. bottom-up. b. network. c. sequential. d. strategic. e. top-down.

e. top-down.

List advantages and disadvantages of commercial software.

Advantages include very quick implementation time, relatively inexpensive software, and reliable, tested software. Disadvantages include not being able to customize the system and difficulty in modifying the software.

Why is the payback method often more useful than the net present value method for evaluating systems projects?

Because of brief product life cycles and rapid advances in technology, the effective lives of information system tends to be short. Shorter payback projects are often desirable.

Contrast the source program library (SPL) management system to the database management system (DBMS).

The SPL software manages program files and the DBMS manages data files.

What are the auditor's objectives relating to systems development?

The auditor's objectives are to ensure that (1) systems development activities are applied consistently and in accordance with management's policies to all systems development projects; (2) the system as originally implemented was free from material errors and fraud; (3) the system was judged necessary and justified at various checkpoints throughout the SDLC; and (4) system documentation is sufficiently accurate and complete to facilitate audit and maintenance activities.