Deck 17: Acquiring and Implementing Accounting Information Systems

Question 1

An important segment of the outsourcing market is the application service provider (ASP), which hosts, manages, and provides access to hardware and software over the Internet to multiple users.

Answer 1

True

Question 2

Specific reports and other documentation, called process documents, must be produced periodically during systems development to make development personnel accountable for faithful execution of systems development tasks.

Answer 2

False

Question 3

Users, managers, and auditors are required to participate in the systems development project. These people generally provide approvals, often called signoffs, at preestablished management control points.

Answer 3

True

Question 4

A tangible cost is one that can be reasonably quantified, such as software purchase and insurance.

Question 5

The primary tasks of systems operation are to conduct post-implementation review and perform systems maintenance.

Question 6

The analysis team conducts a cost/effectiveness study, which provides quantitative and certain qualitative information concerning each of the system alternatives.

Question 7

The cost/benefit study attempts to answer the questions, "which alternative accomplishes the user's goals for the least cost (or greatest benefit)?" and "which alternative best accomplishes a user's goals for the system being developed?"

Question 8

The external auditor may perform an independent review to assess if and how internal controls have been impacted by the AIS development/acquisition.

Question 9

As an analyst, the accountant could be involved in change management issues and/or technical aspects of converting data, software, and hardware from the old to the new AIS.

Question 10

The accountant as an implementer can become involved with systems survey and needs analysis tasks.

Question 11

An indirect cost is one that is directly attributable to the system or the system.

Question 12

Structured systems analysis is a set of procedures conducted to generate the specifications for a new (or modified) information system or subsystem.

Question 13

The internal auditor may review AIS development/acquisition projects to ensure that the process has been efficient and effective and that the acquisition team has followed the organization's standard procedures for systems development/acquisition.

Question 14

It is always better to develop a system in-house than it is to purchase a standard package.

Question 15

The logical specification, physical requirements, and budget and schedule are all part of the systems analysis deliverable called an approved systems analysis document.

Question 16

The cost/effectiveness study attempts to answer the questions, "which alternative accomplishes the user's goals for the least cost (or greatest benefit)?" and "which alternative best accomplishes the user's goals for the system being developed?"

Question 17

A problem has an economically feasible solution if it can be solved with existing software and hardware technology.

Question 18

Similar to the developer of an industrial park, an organization's management or IT steering committee approves a systems development project for further systems development.

Question 19

Deliverables signify approval of the development process and the system being developed.

Question 20

The purpose of AIS implementation is to begin using the new system.

Question 21

Tangible benefits are those that can be reasonably quantified, such as reduced equipment costs and increased revenues.

Question 22

Indirect benefits are not directly attributable to the system or the system change.

Question 23

The design of interfaces involves how data from the existing system are mapped into the new system.

Question 24

The approved systems design document documents the system design and summarizes the implementation training and test plans.

Question 25

The second analysis deliverable, the physical requirements are used in systems selection to acquire computer equipment for the new system.

Question 26

A direct cost is one that is directly attributable to the system or the system change, such as reduced overhead costs.

Question 27

The first analysis deliverable, the logical specification, is used in systems selection to choose the appropriate software to be acquired from external sources.

Question 28

Intangible benefits are those that cannot be reasonably quantified, such as those that result from having improved information.

Question 29

The approved systems design document is used by programmers, the personnel department, and information systems personnel.

Question 30

As depicted in the text, the approved configuration plan is the final output of the software and hardware study.

Question 31

An intangible cost is one that cannot be reasonably quantified, such as productivity losses caused by low employee morale.

Question 32

To validate vendor proposals for supplying computer hardware, an organization will assess both a system's specifications and performance.

Question 33

A benchmark is a representative workload, processed on each vendor's proposed system configuration, to obtain comparative throughput measures.

Question 34

Systems developed using structured systems design techniques are more costly over the life of the system because maintenance of such structured systems is problematic.

Question 35

Structured systems design is a set of procedures performed to convert the logical specification into a design that can be implemented on the organization's computer system.

Question 36

Systems design is a set of procedures performed to choose the software specifications and hardware resources for an information system.

Question 37

As data from the existing system are mapped into the new system, exception-reporting situations must be devised to ensure that the data are converted accurately.

Question 38

Outsourcing is a term that describes an organization's assigning any of its internal functions (e.g., accounting, legal, or IT) to an outside vendor.

Question 39

An RFP is a document sent to vendors that invites submissions of plans for providing hardware, software, and related services.

Question 40

A service bureau is a firm providing information processing services, including hardware and software, for a fee.

Question 41

The modular approach forces the users to learn the new system because they do not have the old system to fall back on.

Question 42

In the parallel approach to systems implementation, both the new and old systems operate together for a period of time.

Question 43

After the conversion is completed, the systems development project team writes the project completion report.

Question 44

Enterprise systems are often implemented using the direct approach.

Question 45

Conversion to new computer programs must be undertaken using contingency plans to ensure that only authorized, tested, and approved versions of the programs are promoted to production status.

Question 46

As an analyst, the accountant could be the development team member who conducts a preliminary survey.

Question 47

The acceptance test is a user-directed test of the complete system in a test environment.

Question 48

As a user, the accountant might initiate the AIS acquisition.

Question 49

The modular approach is also referred to as the phased approach.

Question 50

The removal of program errors is called debugging.

Question 51

With the modular approach to systems implementation, the new system either is implemented one subsystem at a time or is introduced into one organizational unit at a time.

Question 52

The systems development life cycle (SDLC) methodology is an informal, ad-hoc, set of activities used to manage a systems development project.

Question 53

Of the three approaches to systems implementation presented in the text, the parallel approach is the riskiest.

Question 54

As an internal auditor the accountant could be called in to complete the design, help prepare the contracts, or help plan, conduct, and evaluate the system tests.

Question 55

Software as a Service (SaaS) is a Web-based model of software distribution where multiple users may simultaneously use the software.

Question 56

The user, the programmer, and another member of the programming team do a walkthrough of the module specifications and the test plan to determine that the test plan is adequate; then the programmer codes the program.

Question 57

The direct approach is also known as the "big bang" or "cold turkey" approach.

Question 58

Systems maintenance is a set of procedures performed to complete the design contained in the approved systems design document and to test, install, and begin to use the new/revised information system.

Question 59

Making program changes, correcting errors in the programs, and adding enhancements to the programs is called systems development.

Question 60

Systems operation includes the post-implementation review.

Question 61

Adaptive maintenance adjusts applications to reflect changing business needs and environmental challenges.

Question 62

Which development phase has the purpose of developing specifications for the new or revised system?

A) analysis
B) design
C) implementation
D) operation

Question 63

In which role might the accountant be the person who initiates the AIS acquisition cycle, and is in a prime position to recognize deficiencies and incompatibilities related to the existing AIS?

A) User
B) analyst
C) purchaser
D) implementer

Question 64

Which of the following hosts, manages, and provides access to software and hardware over the Internet to multiple customers?

A) Outsourcing
B) application service provider
C) Insourcing
D) Benchmarking

Question 65

Outputs of the systems analysis phase of development typically would include all of the following except:

A) requests for proposal (RFPs) for software/hardware acquisition
B) the logical specifications for the selected system design alternative
C) the physical requirements for the selected system design alternative
D) a budget for the systems design and systems implementation phases of development

Question 66

The system development step that immediately precedes the structured system design step is:

A) structured systems analysis
B) systems implementation and operations
C) systems survey
D) systems selection

Question 67

The Sarbanes-Oxley Act prohibits CPA firms from serving as system consultants.

Question 68

Which of the following functions cannot be outsourced?

A) Accounting
B) Legal
C) IT
D) all of these functions can be outsourced

Question 69

Which development phase has the task of post-implementation review?

A) analysis
B) design
C) implementation
D) operation

Question 70

Which role in the AIS Development/Acquisition process requires the accountant to be equally adept at dealing with people, accounting, and technology?

A) User
B) analyst
C) purchaser
D) implementer

Question 71

Which of the accountant roles involves contributing to systems survey and needs analysis?

A) programmer
B) analyst
C) purchaser
D) implementer

Question 72

In which role might the accountant help meet the organization's AIS needs by selecting the final system for purchase?

A) consultant
B) internal auditor
C) external auditor
D) none of the above

Question 73

Which of the following has the task of evaluating alternative AIS solutions?

A) AIS analysis
B) AIS selection
C) AIS implementation
D) AIS operations

Question 74

Which of the following is a deliverable from the structured systems analysis step of systems development?

A) selected hardware and software
B) logical specification
C) approved configuration
D) project completion report

Question 75

Perfective maintenance is performed to fix errors.

Question 76

The post-implementation review is an examination of a working system, conducted soon after the system's implementation.

Question 77

Which of the following is the assignment of an internal function to an outside vendor?

A) outsourcing
B) application service provider
C) Insourcing
D) Benchmarking

Question 78

Corrective maintenance is conducted to improve the performance of an application.

Question 79

Systems maintenance is the modification of existing applications.

Question 80

Which of the following includes activities for the successful switch from the old to the new AIS?

A) analysis
B) design
C) implementation
D) operation