Chapter 5

Question 1

is a conceptual model used in Project Management that describes the stages involved in an information system development project, from an initial feasibility study through maintenance of the completed application.

Answer 1

systems development life cycle (SDLC)

Question 2

is a conceptual model used in______________ that describes the stages involved in an information system development project, from an initial feasibility study through maintenance of the completed application.

Answer 2

Project Management

Question 3

are systems analysts, systems engineers, and programmers.

Answer 3

Systems professionals

Question 4

are those for whom the system is built. There are many users at all levels in an organization. These include managers, operations personnel, accountants, and internal auditors

Answer 4

End Users

Question 5

are individuals either within or outside the organization who have an interest in the system but are not end users.

Answer 5

Stakeholders

Question 6

are those professionals who address the controls, accounting, and auditing issues for systems development.

Answer 6

Accountants/Auditors

Question 7

• The creation of an information system entails significant financial transactions.
• The nature of the products that emerge from the SDLC.

Answer 7

Why are Accountants & Auditors involved in SDLC?

Question 8

• Accountants are users.
• Accountants participate in systems development as members of the development team.
• Accountants are involved in systems development as auditors. Accounting information systems must be
  auditable.

Answer 8

How Are Accountants Involved with the SDLC?

Question 9

it requires maintaining a full-time systems staff of analysts and programmers who identify user information needs and satisfy their needs
with custom systems

Answer 9

In-House Development

Question 10

A growing number of systems are purchased from software vendors. Faced with many
competing packages, each with unique features and attributes, management must choose
the system and the vendor that best serves the needs of the organization.

Answer 10

Commercial Systems

Question 11

Types of Commercial Systems

Answer 11

1. Turnkey systems
2. General Accounting Systems
3. Special-Purpose Systems
4. Office automation systems
5. Backbone systems
6. Vendor-supported systems

Question 12

are completely finished and tested systems that are ready for implementation. These are often general-purpose systems or systems customized to a specific industry

Answer 12

Turnkey systems

Question 13

are designed to serve a
wide variety of user needs.

Answer 13

General Accounting Systems.

Question 14

that target selected segments of the economy. For example, the medical field, the banking
industry, and government agencies

Answer 14

Special-Purpose Systems

Question 15

are computer systems that
improve the productivity of office workers.

Answer 15

Office automation systems

Question 16

provide a basic system structure on which to
build. It comes with all the primary processing modules programmed

Answer 16

Backbone systems

Question 17

are hybrids of custom systems and commercial software.

Answer 17

Vendor-supported systems

Question 18

Advantages of Commercial Software

Answer 18

1. Implementation Time
2. Cost
3. Reliability

Question 19

Disadvantages of Commercial Software

Answer 19

1. Independence
2. The need for customized systems
3. Maintenance

Question 20

involves conceptual steps that can apply to any problem-solving process: identify the problem, understand what needs to be done,
consider alternative solutions, select the best solution, and, finally, implement the solution

Answer 20

New systems development

Question 21

The objective of ___________ is to link individual system projects or applications to
the strategic objectives of the firm

Answer 21

systems planning

Question 22

may include the chief executive officer, the chief financial officer,
the chief information officer, senior management from user areas, the internal auditor,
and senior management from computer services. E

Answer 22

steering committee

Question 23

Who Should Do Systems Planning?

Answer 23

steering committee

Question 24

Resolving conflicts that arise from new systems
* Reviewing projects and assigning priorities
* Budgeting funds for systems development
* Reviewing the status of individual projects under development
* Determining at various checkpoints throughout the SDLC whether to continue with
the project or terminate it

Answer 24

just read it

Question 25

involves the allocation of systems resources at the macro level. It usually deals with a time frame of 3 to 5 years.

Answer 25

Strategic systems planning

Question 26

This process is similar to ___________ resources for other strategic activities, such as product development, plant expansions, market research, and manufacturing technology.

Answer 26

budgeting

Question 27

is concerned with the allocation of such systems resources as employees

Answer 27

strategic systems plan

Question 28

1. A plan that changes constantly is better than no plan at all 2. . Strategic planning reduces the crisis component in systems development 3. Strategic systems planning provides authorization control for the SDLC. 4. Cost management.

Answer 28

Why Perform Strategic Systems Planning?

Question 29

is to allocate resources to individual applications within the framework of the strategic plan

Answer 29

project planning

Question 30

provides management with a basis for deciding whether to proceed with the project.

Answer 30

project proposal

Question 31

The basic purpose of __________ is to allocate scarce resources to specific projects.

Answer 31

project planning

Question 32

The product of this phase consists of two formal documents: the __________ and the _________

Answer 32

1. project proposal 2. project schedule.

Question 33

Auditors routinely examine the systems planning phase of the SDLC. Planning greatly reduces the risk that an organization has produced unneeded, inefficient, ineffective, and fraudulent systems. Therefore, both internal and external auditors are interested in ensuring that adequate systems planning takes place.

Answer 33

Just Read

Question 34

represents management’s commitment to the project. The project schedule is a budget of the time and costs for all the phases of the SDLC

Answer 34

project schedule

Question 35

Systems analysis is actually a two step process involving first __________ and then an __________

Answer 35

1. a survey of the current system 2. analysis of the user’s needs.

Question 36

The deliverable from this phase is a formal _________, which presents the findings of the analysis and recommendations for the new system

Answer 36

systems analysis report

Question 37

Disadvantages of Surveying the Current System

Answer 37

1. Current physical tar pit 2. Thinking inside the box

Question 38

“sucked in” and then “bogged down”

Answer 38

Current physical tar pit

Question 39

Advantages of Surveying the Current System

Answer 39

1. Identifying what aspects of the old system should be kept. 2. Forcing systems analysts to fully understand the system 3. Isolating the root of problem symptoms

Question 40

These include external entities, such as customers or vendors, as well as internal sources from other departments.

Answer 40

Data sources

Question 41

These include both managers and operations users

Answer 41

Users

Question 42

are the files, databases, accounts, and source documents used in the system

Answer 42

Data stores

Question 43

processing tasks are manual or computer operations that represent a decision or an action triggered by information.

Answer 43

processes

Question 44

are represented by the movement of documents and reports between data sources, data stores, processing tasks, and users.

Answer 44

Data flows

Question 45

These include both accounting and operational controls and may be manual procedures or computer controls.

Answer 45

Controls

Question 46

The analyst must obtain a measure of the transaction volumes for a specified period of time.

Answer 46

Transaction volumes

Question 47

Transaction errors are closely related to transaction volume

Answer 47

Error rates

Question 48

The resources used by the current system include the costs of labor, computer time, materials (such as invoices), and direct overhead.

Answer 48

Resource costs

Question 49

The analyst should note points where data flows come together to form a bottleneck

Answer 49

Bottlenecks and redundant operations

Question 50

involves passively watching the physical procedures of the system.

Answer 50

Observation

Question 51

extension of observation, whereby the analyst takes an active role in performing the user’s work. • Experience first-hand the problems involved in the operation of the current system.

Answer 51

Task Participation

Question 52

Fact-Gathering Techniques

Answer 52

1. Observation 2. Task Participation 3. Personal Interviews 4. Reviewing Key Documents

Question 53

the analyst must determine the acceptable error tolerances for the new system

Answer 53

Error Rates

Question 54

method of extracting facts about the current system and user perceptions about the requirements for the new system

Answer 54

Personal Interviews

Question 55

allow users to elaborate on the problem as they see it and offer suggestions and recommendations.

Answer 55

Open ended questions

Question 56

used to ask more specific, detailed questions and to restrict the user’s responses.

Answer 56

Questionnaires

Question 57

The organization’s documents are another source of facts about the system being surveyed.

Answer 57

Reviewing Key Documents

Question 58

is an intellectual process that is commingled with fact gathering.

Answer 58

System Analysis

Question 59

• The event that marks the conclusion of the systems analysis phase is the preparation of a formal systems analysis report. • This report presents to management or the steering committee the survey findings, the problems identified with the current system, the user’s needs, and the requirements of the new system.

Answer 59

Systems Analysis Report

Question 60

Accountant/auditor should be involved in the needs analysis of the proposed system to determine if it is a good candidate for advanced audit features and, if so, which features are best suited for the system.

Answer 60

The Auditor’s Role in Systems Analysis

Question 61

Is to produce several alternative conceptual systems that satisfy the system requirements identified during systems analysis.

Answer 61

conceptual design phase

Question 62

Two (2) Approaches of conceptual design phase

Answer 62

1. Structured Design Approach 2. Object-Oriented Design (OOD) Approach

Question 63

• a disciplined way of designing systems from the top down. • consists of starting with the “big picture” of the proposed system that is gradually decomposed into more and more detail until it is fully understood.

Answer 63

Structured Design Approach

Question 64

is to build information systems from reusable standard components or objects.

Answer 64

Object-Oriented Design (OOD) Approach

Question 65

The auditability of a system depends in part on its design characteristics. Some computer auditing techniques require systems to be designed with special audit features that are integral to the system.

Answer 65

The Auditor’s Role in Conceptual Systems Design

Question 66

• procedure for selecting the one system from the set of alternative conceptual designs that will go to the detailed design phase. • an optimization process that seeks to identify the best system.

Answer 66

PHASE 4: System Evaluation and Selection

Question 67

Two (2) Steps of System Evaluation and Selection

Answer 67

1. Perform a Detailed Feasibility Study (TELOS) 2. Perform a Cost–Benefit Analysis

Question 68

concerned with whether the system can be developed under existing technology or if new technology is needed.

Answer 68

Technical feasibility

Question 69

availability of funds to complete the project.

Answer 69

Economic feasibility

Question 70

identifies any conflicts between the conceptual system and the company’s ability to discharge its legal responsibilities.

Answer 70

Legal feasibility

Question 71

• degree of compatibility between the firm’s existing procedures and personnel skills and the operational requirements of the new system.

Answer 71

Operational feasibility

Question 72

firm’s ability to implement the project within an acceptable time.

Answer 72

Schedule feasibility

Question 73

helps management determine whether (and by how much) the benefits received from a proposed system will outweigh its costs.

Answer 73

Cost–benefit analysis

Question 74

Three (3) Steps of Cost benefit analysis

Answer 74

Step 1: Identify Costs Step 2: Identify Benefits Step 3: Compare Costs and Benefits

Question 75

include the initial investment to develop and implement the system.

Answer 75

One-time costs

Question 76

- cost of mainframe, minicomputers, microcomputers, and peripheral equipment, such as tape drives and disk packs.

Answer 76

Hardware acquisition

Question 77

such frequently overlooked costs as building modifications, equipment installation, and freight charges.

Answer 77

Site preparation

Question 78

apply to all software purchased for the proposed system, including operating system software, network control software, and commercial applications.

Answer 78

Software acquisition -

Question 79

incurred by systems professionals performing the planning, analysis, and design functions.

Answer 79

Systems design

Question 80

based on estimates of the personnel hours required to write new programs and modify existing programs for the proposed system

Answer 80

Programming and testing -

Question 81

transfer of data from one storage medium to another.

Answer 81

Data conversion

Question 82

educating users to operate the new system.

Answer 82

Training

Question 83

include operating and maintenance costs that recur over the life of the system.

Answer 83

Recurring costs

Question 84

upgrading of the computer (increasing the memory), as well as preventive maintenance and repairs to the computer and peripheral equipment.

Answer 84

Hardware maintenance

Question 85

upgrading and debugging operating systems, purchased applications, and in-house developed applications.

Answer 85

Software maintenance

Question 86

hazards and disasters as fire, hardware failure, vandalism, and destruction by disgruntled employees.

Answer 86

Insurance

Question 87

routine consumption of such items as paper, magnetic disks, CDs, and general office supplies.

Answer 87

Supplies

Question 88

salaries of individuals who are part of the information system.

Answer 88

Personnel costs

Question 89

Step 2: Identify Benefits

Answer 89

A. Tangible Benefits -Increased Revenues: -Cost Reduction B. Intangible Benefits

Question 90

Step 3: Compare Costs and Benefits Two (2) Most Common Methods Used:

Answer 90

A. Net Present Value Method B. Payback Method

Question 91

• a variation of break-even analysis. • The break-even point is reached when total costs equal total benefits.

Answer 91

Payback Method

Question 92

This formal document consists of a revised feasibility study, a cost-benefit analysis, and a list and explanation of intangible benefits for each alternative design. • On the basis of this report, the steering committee will select a single system that will go forward to the next phase of the SDLC—detailed design.

Answer 92

Prepare Systems Selection Report