AIS Exam 2

22.6 Arrange the nine items in sequence 1. system test 2. user specifications 3. conversion 4. systems survey 5. technical specifications 6. post implementation planning 7. implementation planning 8. user procedures and training 9. programming

1. Systems survey 2. User specifications 3. Technical specifications 4. Implementation planning 5. Programming 6. User procedures and training 7. System test 8. Conversion 9. Post implementation planning SUTI PUSC P

Matching: 1. An individual financial statement item 2. The set of journal entries that updated the general ledger 3. A set of files that defines XBRL elements and specifies the relationships among them 4. A file that defines relationships among XBRL elements

1. XBRL element 2. Journal voucher file 3. XBRL taxonomy 4. XBRL linkbase

List the five qualities of a successful information system and state how each of the five qualities can be achieved.

1. correct information - have adequate internal control 2. timely information - choose a processing method suited to user's needs like batch or online 3. reasonable time for development - define scope of the system and use project management techniques 4. satisfy the organizations needs. Current needs get committee approval for new system projects and future, have long range system master plan 5. user satisfaction - user support for projects and user responsibility for the system

Completely explain the four approaches of implementing a new computer system.

1. parallel implementation- most expensive. Both old and new system allowed to operate at the same time so errors get detected quicker 2. Direct implementation- least expensive. Old system is terminated when the new system is ready to be activated 3. Phase in implementation- nominal expense. The old system is gradually phased out as the new system is phased in 4. Pilot implementation- nominal expense. One area is selected to test new system

Matching: 1. A list of each employee's gross pay, payroll deductions, and net pay in a multicolumn format 2. Used to record the activities performed by a salaried professional for various clients 3. Used to record time worked by an hourly wage employee 4. An organization that processes payroll

1. payroll register 2. Time sheet 3. Time card 4. Payroll service bureau

5. A detective control that can be used to trace changes in general ledger account balances back to the source document 6. A file that defines the attributes of XBRL elements 7. A file containing a set of customized tags to define new XBRL elements that are unique to a specific organization

5. Audit trail 6. XBRL schema 7. XBRL extension taxonomy

5. A document given to each employee that shows gross pay, net pay, and itemizes all deductions both for the current pay period and for the year to date 6. Special general ledger account used for payroll processing

5. Earnings statement 6. Payroll clearing account

Compare and contrast canned software and custom software in a table format. Be specific.

Custom software can be created in house or by outside developer. You may customize it to your needs and you have more control over it. -Canned software is available right away and will cost less then a customer software but may not meet all of the users needs and modifications may be required to meet those needs.

Fully explain the importance of user involvement and acceptance during the SDLC. Explain how this can be achieved. Be specific and provide specific examples.

During system analysis, the information needs of system users are identified and used to develop system requirements. During the physical design, it is built user-orientated which means users need are needed for outputs and inputs. During implementation, new hardware is installed and tested and employees trained to use it. During maintenance, new system is reviewed and modifications are made as needed. For example, in the problem where Mary did not agree with the new system, the owner should have listened to Mary, the user, in regards to getting a new system and giving her proper training.

Fully explain "source code" as it applies to canned software.

It's the written instructions of software. Sometimes vendors will sell their source code to customers of the product which then can modify it to better fit their needs. This can be dangerous because sometimes there are accidental consequences after the software has been modified.

pg. 472 fill in table Report Recipient Report(s) Required

Managers- department income statement controller- adjusting entries

pg. 472 Fill table CYCLE Input to G/L and Reporting System- SPECIFIC Nature/Type of Data Input

Revenue cycle - sales and cash receipts Expenditure cycle- purchases and cash distributions Managers- department income statement controller- adjusting entries

Explain why it is often more economical to do payroll with an ASP than in house. Be specific.

With a larger number of companies, payroll service companies can charge fees less than cost of doing in-house because in-house the company needs to hire people to process the payroll as well as designing the program. They also save money by eliminating the need to develop and maintain expertise to comply with constant change in tax law and withholding rates. ASP's prepare payroll tax returns for timely filing.

Which of the following is NOT a benefit of outsourcing? a) It offers a great deal of flexibility because it is relatively easy to change outsourcers b) it can provide access to the expertise and special services provided by outsourcers c) it allows companies to move to a more sophisticated level of computing at a reasonable cost d) it is a cost-effective way to handle the peaks and valleys found in seasonal businesses

a) It offers a great deal of flexibility because it is relatively easy to change outsourcers

To compare system performance, a company can create a data processing task with input, processing, and output jobs. This task is performed on the systems under consideration and the processing times are compared. The AIS with the lowest time is the most efficient. What is this process called? a) benchmarking b) requirements costing c) point scoring d) performance testing

a) benchmarking

An adjusting journal entry to record interest revenue that has been earned but not yet received is an example of which of the following? a. accrual b. deferral c. estimate d. revaluation

a. accrual

Increased error rates, disruptions, and sabotage are examples of which of the following? a. aggression b. avoidance c. projection d. payback

a. aggression

To maximize effectiveness of internal controls over payroll, which of the following persons should be responsible for distributing employee paychecks? a. departmental secretary b. payroll clerk c. controller d. departmental supervisor

a. departmental secretary

What is the process of discontinuing an old system as soon as a new one is introduced? a. direct conversion b. parallel conversion c. phase-in conversion d. pilot conversion

a. direct conversion

Which of the following describes designing a program from the top down or more detailed levels? a. hierarchical program design b. top-down program design c. parallel program design d. unstructured program design

a. hierarchical program design

Which of the following is an important part of the audit trail? a. journal vouchers b. flexible budgets c. trial balance d. data warehouse

a. journal vouchers

A monthly payroll register showing all hourly employees, the number of hours they worked, their deductions, and their net pay is most likely which of the following? a. scheduled report b. special-purpose analysis c. triggered exception report d. demand report

a. scheduled report

What is often the most significant problem a company encounters in designing, developing, and implementing a system? a. the human element b. technology c. legal challenges d. planning for the new system

a. the human element

Companies that buy rather than develop an AIS must still go through the systems development life cycle. a. true b. false

a. true

Resistance is often a reaction to the methods of instituting change rather than to change itself. a. true b. false

a. true

Which of the following statements is FALSE? a) As a general rule, companies should buy rather than develop software if they can find a package that meets their needs b) As an AIS increases in size and complexity, there is a greater likelihood that canned software can be found that meets user needs c) A company should not attempt to develop its own custom software unless experienced, in-house programming personnel are available and the job can be completed less expensively on the inside d) As a general rule, a company should develop custom software only when it will provide a significant competitive advantage

b) As an AIS increases in size and complexity, there is a greater likelihood that canned software can be found that meets user needs

Which of the following is NOT an advantage of prototyping? a) better definition of user needs b) adequately tested and documented systems c) higher user involvement and satisfaction d) faster development time

b) adequately tested and documented systems

Which of the following is the planning technique that identifies implementation activities and their relationships, constructs a network of arrows and nodes, and then determines the critical path through the network? a. Gantt chart b. PERT diagram c. physical model d. data flow diagram

b. PERT diagram

Which of the following is designed primarily to improve the efficiency of financial reporting? a. XML b. XBRL c. IFRS d. the balances scorecard

b. XBRL

developers of your new system have proposed two different AIS designs and have asked you to evaluate them. This evaluation process is most likely to be a part of which SDLC step? a. systems analysis b. conceptual design c. physical design d. implementation and conversion e. operation and maintenance

b. conceptual design

From where do adjusting entries usually come? a. treasurer b. controller c. various accounting cycle subsystems, such as sales order entry d. unit managers

b. controller

Which of the following is the long-range planning document that specifies what they system will consist of, how it will be developed, who will develop it, how needed resources will be acquired committee agenda a. steering committee agenda b. master plan c. systems development life cycle d. project development plan

b. master plan

Determining whether the organization has access to people who can design, implement, and operate the proposed system is referred to as which of the following? a. technical feasibility b. operational feasibility c. legal feasibility d. scheduling feasibility e. economic feasibility

b. operational feasibility

Traditionally, accountants have been most involved with which portion of the HRM/ payroll cycle? a. hiring b. payroll c. training d. performance evaluation

b. payroll

Which control procedure would be most effective in detecting the failure to prepare a paycheck for a new employee before paychecks are distributed? a. validity checks on the employee b. record counts of time cars submitted and time cards processed c. zero-balance check d. use of a separate payroll bank account

b. record counts of time cars submitted and time cards processed

Which of the following statements is true? a) because the AIS is so crucial, companies never outsource parts of the AIS b) most mainframe outsourcing contracts are for two to three years and cost thousands of dollars a year c) Outsourcers often buy the client's computers and hire all or most of its information systems employees d) Only companies struggling to survive and wanting a quick infusion of cash from selling their hardware use outsourcing

c) Outsourcers often buy the client's computers and hire all or most of its information systems employees

When a company is buying large and complex systems, vendors are invited to submit systems for consideration. what is such a solicitation called? a) request for quotation b) request for system c) request for proposal d) good-faith estimate

c) request for proposal

When is it most appropriate to use prototyping? a) when there is little uncertainty about the AIS b) when it is clear what users' needs are c) when the final AIS cannot be clearly visualized because the decision process is still unclear d) when there is a very low likelihood of failure

c) when the final AIS cannot be clearly visualized because the decision process is still unclear

Which department should have responsibility for authorizing pay rate changes? a. timekeeping b. payroll c. HRM d. accounting

c. HRM

Which of the following describes the systems testing approach that uses real transactions and files rather than hypothetical ones? a. walk-through b. processing of test transactions c. acceptance test d. parallel conversion test

c. acceptance test

Which of the following is an important supporting document to authorize the transfer of funds to the payroll bank account? a. earnings statement b. time card c. payroll register d. W-2 form

c. payroll register

Which of the following graph design principles is most important for ensuring that financial data are accurately interpreted? a. including a title that summarizes the point of the graph b. attaching data values to specific elements in the graph c. starting the y-axis of the graph at zero d. using different colors for different variables

c. starting the y-axis of the graph at zero

Which of the following is most likely to help improve program development? a. physical model b. IT strategic plan c. walk-through d. record layout

c. walk-through

Which of the following is a true statement with respect to prototyping? a) in the early stages of prototyping, system controls and exception handling may be sacrificed in the interests of simplicity, flexibility, and ease of use b) a prototype is a scaled-down, first-draft model that is quickly and inexpensively built and given to users to evaluate c) the first step in prototyping is to identify system requirements d) all of the statements are true

d) all of the statements are true

Which of the following is NOT a consideration in input design? a. Which errors are possible, and how can they be detected and corrected? b. How can data be entered c. Which format efficiently captures the input data with the least effort and cost? d. How often should the system produce reports?

d. How often should the system produce reports?

Which of the following statements is true? a. The Gartner Group estimates that programming bugs not found until later in the SDLC cost 25 to 30% more to correct than if they had been found earlier in the SDLC. b. Direct system conversion is the least risky of the system conversion methods c. Many software developers state that 5 to 10% of software development costs should be allocated to testing, debugging, and rewriting software. d. Over the life of the system, only 30% of information systems work takes place during development; the remaining 70% is spent maintaining the system.

d. Over the life of the system, only 30% of information systems work takes place during development; the remaining 70% is spent maintaining the system.

Which of the following is NOT one of the difficulties accountants have experiences using the traditional systems development life cycle? a. AIS development projects are backlogged for years b. changes are usually not possible after requirements have been frozen c. the AIS that is developed may not meet their needs d. all are difficulties with the SDLC

d. all are difficulties with the SDLC

Use of payroll service bureau or a PEO provides which of the following benefits? a. fewer staff needed to process payroll b. lower cost of processing payroll c. less need for developing and maintaining payroll tax expertise. d. all the above

d. all the above

Which document lists the current amount and the year to date totals of gross pay, deductions, and net pay for one employee? a. payroll register b. time card c. paycheck d. earnings statement

d. earnings statement

Which of the following is the correct order of the steps in systems analysis? a. initial investigation, determination of info needs and system requirements, feasibility study, system survey b. determination of ino needs and system requirements, system survey, feasibility study, initial investigation c. system survey, initial investigation, determination of information needs and system requirements, feasibility study d. initial investigation, system survey, feasibility study, determination of info needs and system requirements

d. initial investigation, system survey, feasibility study, determination of info needs and system requirements

Online processing is most useful for which of these tasks? a. preparing payroll checks b. reconciling job-time tickets and time cards c. paying payroll tax obligations d. making changes in employee benefit choices

d. making changes in employee benefit choices

Which of the following is the correct order of the steps in physical systems design? a. input, file and database, output, controls, procedures, program b. file and database, output, input, procedures, program, controls c. output, input, file and database, procedures, program, controls d. output, file and database, input, program, procedures, controls

d. output, file and database, input, program, procedures, controls

The purchasing department is designing a new AIS. Who is best able to determine departmental information requirements? a. steering committee b. controller c. top management d. purchasing department

d. purchasing department

What is the purpose of the conceptual systems design report? a. to guide physical systems design activities b. to communicate how management and user information needs are met c. to help the steering committee assess system feasibility d. a and b e. a,b, and c

e. a,b, and c

Which of the following is NOT one of the tangible or intangible benefits a company might obtain from a new system? a. cost savings b. improved customer service and productivity c. improved decision making d. improved data processing e. all are benefits of a new system

e. all are benefits of a new system

Which of the following is NOT a reason why companies make changes to their AIS? a. gain a competitive advantage b. increase productivity c. keep up with business growth d. downsize company operations e. all of the above are reasons why companies change in AIS

e. all of the above are reasons why companies change in AIS

22.5 Matching 1. Systems analysis 2. systems design 3. Implementation and conversion 4. Operation and maintenance

1. Identify external and admin controls, evaluate the existing system, analyzing total quality management performance measures, conduct a feasibility analysis, aligning AIS development plans with business objectives 2. identifying alternative systems designs, developing a logical model of the system, writing operating procedure manuals, developing program and process controls 3. writing operating procedure manuals, testing system, training personnel 4. modifying and altering programs, analyzing the achievement of systems benefits, analyzing total quality management performance measures