AIS Test #3 quizzes (10,22,23)

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.

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.

Which of the following statements about control environment is false? a. Management's attitudes toward internal control and ethical behavior have little impact on employee beliefs or actions. b. An overly complex or unclear organizational structure may be indicative of problems that are more serious. c. A written policy and procedures manual is an important tool for assigning authority and responsibility. [ d. Supervision is especially important in organizations that cannot afford elaborate responsibility reporting or are too small to have an adequate separation of duties.

a. Management's attitudes toward internal control and ethical behavior have little impact on employee beliefs or actions.

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

a. agression

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

To achieve effective segregation of duties, certain functions must be separated. Which of the following is not a correct listing of systems duties that must be segregated? a. data entry, users, operations b. authorization, data storage, data output c. programming, authorization, data storage d. monitoring, data entry, operations

a. data entry, users, operations c. programming, authorization, data storage d. monitoring, data entry, operations

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

a. human element

Which of the following is the correct order of the risk assessment steps discussed in this chapter? a. identity threats, estimate risk and exposure, identity controls, estimate costs and benefits b. identify controls, estimate risk and exposure, identify threats, estimate costs and benefits c. estimate risk and exposure, identify controls, identify threats, estimate costs and benefits d. estimate costs benefits, identify threats, identify controls, estimate risk and exposure

a. identity threats, estimate risk and exposure, identity controls, estimate costs and benefits

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

Which of the following statements is true? a. COSO's enterprise risk management framework is narrow in scope and is limited to financial controls b. COSO's internal control integrated framework has been widely accepted as the authority on internal controls c. The Foreign Corrupt Practices Act had no impact on internal accounting control systems d. It is easier to add controls to an already designed system than to include them during the initial design stage.

b. COSO's internal control integrated framework has been widely accepted as the authority on internal controls

Your current system is deemed to be 90% reliable. A major threat has been identified with an impact of $3,000,000. Two control procedures exist to deal with the threat. Implementation of control A would cost $100,000 and reduce the likelihood to 6%. Implementation of control B would cost $140,000 and reduce the likelihood to 4%. Implementation of both controls would cost $220,000 and reduce the likelihood to 2%. Given the data, and based solely on an economic analysis of costs and benefits, what should you do? a. implement control A only b. implement control B only c. implement A and B d. Implement neither

b. Control B only

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 c. physical model d. data flow diagram

b. PERT

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

To achieve effective segregation of duties, certain functions must be separated. Which of the following is the correct listing of the accounting-related functions that must be segregated? a. control, recording and monitoring b. authorization, recording and custody c. control, custody, and authorization d. monitoring, recording and planning

b. authorization, recording and custody

COSO identified five interrelated components of internal control. Which of the following is not one of those five? a. risk assessment b. internal control policies c. monitoring d. information and communication

b. internal control polciies

Which of the following is the long-range planning document that specifies what the system will consist of, how it will be developed, who will develop it, how needed resources will be acquired, and its overall vision? 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

b. operational feasibility

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 (RFP)

Which of the following is a control procedure relating to both the design and the use of documents and records? a. locking blank checks in a drawer b. reconciling the bank account c. sequentially prenumbering sales invoices d. comparing actual physical quantities with recorded amounts

c. sequentially prenumbering sales invoices

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 of the following is not one of the difficulties software developers have experienced 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. AIS developed may not meet their needs d. All are difficulties

d. all are difficulties

Which of the following is a true statement about 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 statements are true

d. all statements are true

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

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

All other things being equal, which of the following is true? a. Detective controls are superior to preventative controls b. corrective controls are superior to preventative c. preventative controls are equivalent to detective d. preventative controls are superior to detective

d. preventative controls are superior to detective

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

Which of the following is not an independent check? a. bank rec b. periodic comparison c. trial balance d. re-adding total of a batch of invoices and comparing it with your first total

d. re-adding total of a batch of invoices and comparing it with your first total

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

e. all of the above

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 of the above are benefits

e. all of the above