Technology-Enabled Finance Transformation

Question 1

1All of the following are correct statements regarding the use of cloud computing for big data
projects except
A. Businesses are hesitant to invest in an extensive server and storage infrastructure that might only be used
occasionally to complete big data tasks.
B. Businesses only pay for the storage and computing time actually used.
C. An advantage of using cloud computing includes fast access to software.
D. Analysts are not required to have a detailed understanding of the available data and possess some sense of
what answer(s) they’re looking for.

Answer 1

Answer (D) is correct.
Analysts must have a detailed understanding of the available data and possess some sense of the
answers they are looking for. The value of data is only as valuable as the business outcomes it makes
possible. It is how businesses make use of data that allows full recognition of its true value and the
potential to improve decision-making capabilities and measure them against the results of positive
business outcomes

Question 2

2Software-as-a-service can best be defined as a(n)
A. On-premises ERP system installed and serviced locally.
B. Type of cloud computing in which applications are hosted by a third party for a monthly fee.
C. Type of database management system serviced by a third party for an annual fee.
D. Infrastructure platform that replaces complex individual computers within a business.

Answer 2

Answer (B) is correct.
Software-as-a-service (SaaS) is a software-user distribution model wherein a third-party provider hosts
applications and makes them available to subscribers over the Internet. With this model, the user does
not have to buy and maintain as much computer hardware, install software, or worry about manning
support services. Other benefits of SaaS include flexible payments, scalable usage, automatic updates,
and flexible accessibility

Question 3

3An analyst prepared a forecast using newly developed system features. The analyst recently left the
company and her replacement was unable to understand how to use these system functionalities. In accordance with
systems development life-cycle best practices, which one of the following controls would have prevented this
situation from occurring?
A. End-user computing efforts are outlined.
B. Documentation standards and procedures are developed.
C. Backup activities and requirements are put into place.
D. Changes made to the system are monitored and evaluated.

Answer 3

Answer (B) is correct.
A requirement for documentation standards would have prevented the problem.

Question 4

4An IT manager has only enough resources to install either a new payroll system or a new data
security system, but not both. Which of the following actions is most appropriate?
A. Giving priority to the security system.
B. Leaving the decision to the IT manager.
C. Increasing IT staff output in order for both systems to be installed.
D. Having the information systems steering committee set the priority.

Answer 4

Answer (D) is correct.
The needs assessment and cost-benefit analysis should be conducted by those responsible for making
the decision. In this case, the information systems steering committee is the appropriate decision
maker.

Question 5

5An insurance firm that follows the systems development life cycle concept for all major information
system projects is preparing to start a feasibility study for a proposed underwriting system. Some of the primary
factors the feasibility study should include are
A. Possible vendors for the system and their reputation for quality.
B. Exposure to computer viruses and other intrusions.
C. Methods of implementation, such as parallel or cutover.
D. Technology and related costs.

Answer 5

Answer (D) is correct.
The feasibility study should consider the activity to be automated, the needs of the user, the type of
equipment required, the cost, and the potential benefit to the specific area and the company in general.
Thus, technical feasibility and cost are determined during this stage.

Question 6

6Which of the following should be reviewed before designing any system elements in a top-down
approach to new systems development?
A. Types of processing systems used by competitors.
B. Computer equipment needed by the system.
C. Information needs of managers for planning and control.
D. Controls in place over the current system.

Answer 6

Answer (C) is correct.
The functionality that the system will provide to the end users is always the first consideration.

Question 7

7In which of the following phases of computer system development would training occur?
A. Planning phase.
B. Analysis phase.
C. Design phase.
D. Implementation phase.

Answer 7

Answer (D) is correct.
Training occurs during the implementation (installation and operation) phase of computer system
development. Training and educating users is important not only for proper use of the system, but also
to offset the resistance of users whose jobs may have been substantially changed. This phase also
includes acceptance testing, system conversion, and system follow-up.

Question 8

8The process of learning how the current system functions, determining the needs of users, and
developing the logical requirements of a proposed system is referred to as
A. Systems maintenance.
B. Systems analysis.
C. Systems feasibility study.
D. Systems design.

Answer 8

Answer (B) is correct.
A systems analysis requires a survey of the existing system, the organization itself, and the
organization’s environment to determine (among other things) whether a new system is needed. The
survey results determine not only what, where, how, and by whom activities are performed but also
why, how well, and whether they should be done at all. Ascertaining the problems and informational
needs of decision makers is the next step. The systems analyst must consider the entity’s key success
variables (factors that determine its success or failure), the decisions currently being made and those
that should be made, the factors important in decision making (timing, relation to other decisions, etc.),
the information needed for decisions, and how well the current system makes those decisions. Finally,
the systems analysis should establish the requirements of a system that will meet user needs.

Question 9

9The process of developing specifications for hardware, software, manpower, data resources, and
information products required to develop a system is referred to as
A. Systems analysis.
B. Systems feasibility study.
C. Systems maintenance.
D. Systems design.

Answer 9

Answer (D) is correct.
Detailed systems design involves developing specifications regarding input, processing, internal
controls and security measures, programs, procedures, output, and databases.

Question 10

10The least risky strategy for converting from a manual to a computerized accounts receivable system
would be a
A. Direct conversion.
B. Parallel conversion.
C. Pilot conversion.
D. Database conversion.

Answer 10

Answer (B) is correct.
The least risky strategy for converting from a manual to a computerized system is a parallel conversion
in which the old and new systems are operated simultaneously until satisfaction is obtained that the
new system is operating as expected. Slightly more risky is a pilot conversion in which the new system
is introduced by module or segment.

Question 11

11Workwell Company operates in several regions, with each region performing its data processing in
a regional data center. The corporate management information systems (MIS) staff has developed a database
management system to handle customer service and billing. The director of MIS recommended that the new system
be implemented in the Southwestern Region to ascertain if the system operates in a satisfactory manner. This type of
conversion is called a
A. Parallel conversion.
B. Direct conversion.
C. Prototype conversion.
D. Pilot conversion.

Answer 11

Answer (D) is correct.
A modular conversion approach entails switching to the new or improved system in organizational (division, region, product line, etc.) segments or system segments (accounts receivable, database, etc.).
A pilot conversion is one in which the final testing and switchover are accomplished at one segment or
division of the company.

Question 12

12Errors are most costly to correct during
A. Programming.
B. Conceptual design.
C. Analysis.
D. Implementation.

Answer 12

Answer (D) is correct.
Errors can be corrected most easily and clearly when they are found at an early stage of systems
development. Their correction becomes more costly as the life cycle progresses. Because
implementation is the last stage of the process listed, errors are most costly to correct when discovered
at the implementation stage

Question 13

13The process of monitoring, evaluating, and modifying a system as needed is referred to as
A. Systems analysis.
B. Systems feasibility study.
C. Systems maintenance.
D. Systems implementation.

Answer 13

Answer (C) is correct.
Systems maintenance must be undertaken by systems analysts and applications programmers
continuously throughout the life of a system. Maintenance is the redesign of the system and programs
to meet new needs or to correct design flaws. Ideally, these changes should be made as part of a
regular program of preventive maintenance.

Question 14

14An information system (IS) project manager is currently in the process of adding a systems analyst
to the IS staff. The new systems analyst will be involved with testing the new computerized system. At which stage
of the systems development life cycle will the analyst be primarily used?
A. Cost-benefit analysis.
B. Requirements definition.
C. Flowcharting.
D. Development.

Answer 14

Answer (D) is correct.
The systems development life-cycle approach is the oldest methodology applied to the development of
medium or large information systems. The cycle is analytically divisible into stages: definition, design,
development, implementation, and maintenance. Testing is the most crucial step in the development
stage of the life cycle.

Question 15

15A major disadvantage of the life cycle approach to system development is that it is not well-suited
for projects that are
A. Structured.
B. Large.
C. Complex.
D. Unstructured.

Answer 15

Answer (D) is correct.
The life cycle approach is best employed when systems are large and highly structured, users
understand the tasks to be performed by the information system, and the developers have directly
applicable experience in designing similar systems. In the life cycle process, each stage of
development is highly structured, and requirements are clearly defined. However, when the task is
unstructured, prototyping may be the better approach.

Question 16

16Advantages of life cycle methodologies are
A. Lower overall development costs when requirements change frequently.
B. Ability to give users a functioning system quickly.
C. Reduced application development time to achieve a functioning system.
D. Enhanced management and control of the development process.

Answer 16

Answer (D) is correct.
The systems development life cycle approach is the most common methodology applied to the
development of large, highly structured application systems. The life cycle approach is based on the
idea that an information system has a finite life span that is limited by the changing needs of the
organization. This cycle is analytically divisible into stages. A new system life cycle begins when the
inadequacy of the current system leads to a decision to develop a new or improved system. This
method is a structured process for controlling the creative activity required to devise, develop, and
implement an information system. The process is described in varying terms by different writers, but
the nature and sequence of the steps are essentially the same. Life cycle methodologies provide
enhanced management and control of the development process because they provide structure for a
creative process by dividing it into manageable steps and specifying what must be produced in each
phase.

Question 17

17After reviewing the end-user computing (EUC) policy of an organization, an internal auditor audits
the actuarial function and notices that some minimum control requirements are missing. Which of the following is a
risk of using potentially incorrect end-user developed files?
A. Management places the same degree of reliance on the files as they do on files generated from mainframe
systems.
B. Management receives limited information for decision making due to a lack of flexibility in EUC files.
C. Management is unable to respond to competitive pressures quickly.
D. Management continues to incur additional cost because it takes more hours to do the tasks using EUC.

Answer 17

Answer (A) is correct.
End-user developed applications may not be subject to an independent outside review by systems
analysts and are not created in the context of a formal development methodology. These applications
may lack appropriate standards, controls, quality assurance procedures, and documentation. A risk of
end-user applications is that management may rely on them as much as traditional applications.

Question 18

18Which of the following is the final step before placing the system in live operation?
A. Phased conversion.
B. User acceptance testing.
C. Dynamic testing.
D. Static testing.

Answer 18

Answer (B) is correct.
IT must demonstrate to the user department that the system performs the desired functionality. Once
the user department is satisfied with the new system, they acknowledge formal acceptance and
implementation begins. Thus, user acceptance testing is the final step before placing the system in live
operation.

Question 19

19All of the following are strategies for converting to a new system except
A. Parallel operation.
B. Direct cutover conversion.
C. Pilot conversion.
D. White-box testing.

Answer 19

Answer (D) is correct.
Information technology conversion can involve hardware, operating systems, database management
systems, and applications. Conversion methods utilized are (1) direct cutover, (2) pilot conversion, (3) phased conversion, and (4) parallel conversion. White-box testing tests internal structures or workings
of a program, as opposed to the functionality exposed to the end-user. Thus, white-box testing is not a
strategy for converting to a new system.

Question 20

20Which of the following are objectives for performing tests during system development?
I. System responds correctly to all kinds of inputs
II. System achieves the general result its stakeholders desire
III. System meets the requirements that guided its design and development
IV. System performs its functions within an acceptable time
A. I and III only.
B. II, III, and IV only.
C. I, II, and IV only.
D. I, II, III, and IV.

Answer 20

Answer (D) is correct.
Testing is performed during system development with the intent of identifying errors or other defects.
The job of testing is an iterative process as when one error is corrected, it can illuminate other errors or
even create new ones. All of the objectives listed are objectives for performing tests during system
development.

Question 21

21Effective internal control for application development should provide for which of the following?
I. A project steering committee to initiate and oversee the system
II. A technical systems programmer to evaluate systems software
III. Feasibility studies to evaluate existing systems
IV. The establishment of standards for systems design and programming
A. I and III only.
B. I, II, and IV only.
C. I, III, and IV only.
D. II, III, and IV only

Answer 21

Answer (C) is correct.
Effective systems development requires participation by top management. This can be achieved
through a steering committee composed of higher-level representatives of system users. The committee
approves or recommends projects and reviews their progress. Studies of the economic, operational, and
technical feasibility of new applications necessarily entail evaluations of existing systems. Another
necessary control is the establishment of standards for system design and programming. Standards
represent user and system requirements determined during systems analysis.

Question 22

22ABC, Inc., assessed overall risks of IT systems projects on two standard criteria: technology used
and design structure. The following systems projects have been assessed on these risk criteria. Which of the
following projects holds the highest risk to ABC?
Technology
Structure
A. Current Sketchy
B. New Sketchy
C. Current Well defined
D. New Well defined

Answer 22

Answer (B) is correct.
New and unfamiliar technology holds more risks than known and stable technology. Also, sketchy
design structure makes for greater uncertainty and thus higher risk.

Question 23

23Gray-box testing involves
A. Testing internal structures or workings of a program.
B. Executing programmed code with a given set of test cases.
C. Having knowledge of internal data structures and algorithms for purposes of designing tests.
D. Examining functionality without any knowledge of the source code.

Answer 23

Answer (C) is correct.
Gray-box testing involves having knowledge of internal data structures and algorithms for the purpose
of designing tests, while executing those tests at the user, or black-box, level.

Question 24

24Which of the following is a correct statement regarding combinatorial test design?
A. Identifies the number of tests needed to get the coverage developers want.
B. Seeks to verify the interfaces between components against a software design.
C. Tests a completely integrated system to verify that the system meets its requirements.
D. Determines whether the system meets the organization’s needs and is ready for release.

Answer 24

Answer (A) is correct.
Although the number of possible tests to apply is almost limitless, developers can’t test everything. All
testing uses strategy to select tests that are feasible for the available time and resources. Combinatorial
test design identifies the number of tests needed to get the coverage developers want.

Question 25

25Which of the following best describes acceptance testing?
A. Determines whether the system meets the organization’s needs and is ready for release.
B. Tests a completely integrated system to verify that the system meets its requirements.
C. Seeks to verify the interfaces between components against software design.
D. Verifies the functionality of a specific section of code and the handling of data passed between various
units.

Answer 25

Answer (A) is correct.
Acceptance testing is conducted to determine whether the system meets the organization’s needs and is
ready for release.

Question 26

26Which of the following statements is true regarding unit testing?
I. Verifies the functionality of a specific section of code
II. Checks the handling of data passed between various units or subsystem components
A. I only.
B. II only.
C. Neither.
D. I and II.

Answer 26

Answer (D) is correct.
Both statements are true regarding unit testing

Question 27

27Which of the following testing methods examines the program’s code and its associated
documentation through reviews, walkthroughs, or inspections but does not require the program be executed?
A. Dynamic testing.
B. Static testing.
C. Gray-box testing.
D. Black-box testing.

Answer 27

Answer (B) is correct.
Static testing examines the program’s code and its associated documentation through reviews,
walkthroughs, or inspections but does not require the program be executed.

Question 28

28During a post implementation review of an accounting information system (AIS), an accountant
learned that an AIS with few customized features had been budgeted and scheduled to be installed over 9 months for
$3 million (including hardware, software, and consulting fees). An in-house programmer was assigned as the project
manager and had difficulty keeping the project on schedule. The implementation took 18 months, and actual costs
were 30% over budget. Many features were added to the system on an ad-hoc basis, with the project manager’s
authorization. The end-users are very satisfied with the new system. The steering committee, however, is dissatisfied
about the scope creep and would like a recommendation to consider before approving initiation of another large
project. Based on those findings, the accountant should recommend implementing a
A. Change control system.
B. Contract management system.
C. Budgeting system.
D. Project timekeeping system.

Answer 28

Answer (A) is correct.
Over the life of an application, users are constantly asking for changes. The process of managing these
changes is referred to as systems maintenance, and the relevant controls are called program change
controls. Because the steering committee is dissatisfied with the implementation of the previous
project, a change control system should be implemented to ensure that the next project is implemented
in a more satisfactory manner.

Question 29

29A bank was considering its first use of computer-aided software engineering (CASE) to develop an
inquiry system for account representatives to access consolidated profiles of customers’ accounts. A benefit of using
CASE in this situation is that
A. No new software development tools would be needed.
B. No training of programmers would be required.
C. Management of the development process would be improved.
D. The need for testing would be reduced.

Answer 29

Answer (C) is correct.
CASE applies computers to software design and development. It permits creation and maintenance of
systems documentation on the computer and the automation of a part of the programming effort. Using
CASE would improve management of the development process because the CASE software maintains
the links between the different components, provides built-in project management tools, and supplies
automated testing aids.

Question 30

30Which of the following should be reviewed before designing any system elements in a top-down
approach to new systems development?
A. Types of processing systems used by competitors.
B. Computer equipment needed by the system.
C. Information needs of managers for planning and control.
D. Controls in place over the current system.

Answer 30

Answer (C) is correct.
The functionality that the system will provide to the end users is always the first consideration.

Question 31

31Ordinarily, the analysis tool for the systems analyst and steering committee to use in selecting the
best system alternative is
A. Pilot testing.
B. User selection.
C. Decision tree analysis.
D. Cost-benefit analysis.

Answer 31

Answer (D) is correct.
Feasibility studies should include an analysis of the cost-benefit ratio of any system alternatives. In
many cases, the best possible system may not be cost effective. Thus, once the decision makers have
determined that two or more systems alternatives are acceptable, the cost-benefit analysis should be
used to select the best system for a particular application.

Question 32

32Two phases of systems planning are project definition and project initiation. All of the following
are steps in the project initiation phase except
A. Preparing the project proposal.
B. Informing managers and employees of the project.
C. Assembling the project team.
D. Training selected personnel.

Answer 32

Answer (A) is correct.
The project initiation phase includes promptly informing managers and employees about the project,
assembling the project team (possibly including systems analysts, programmers, accountants, and
users), training selected personnel to improve necessary skills and enhance communication among
team members, and establishing project controls (e.g., by implementing a project scheduling technique
such as PERT). Preparing the project proposal is a part of the project definition phase, as are
conducting feasibility studies, determining project priority, and submitting the proposal for approval.

Question 33

33The process of developing specifications for hardware, software, manpower, data resources, and
information products required to develop a system is referred to as
A. Systems analysis.
B. Systems feasibility study.
C. Systems maintenance.
D. Systems design.

Answer 33

Answer (D) is correct.
Detailed systems design involves developing specifications regarding input, processing, internal
controls and security measures, programs, procedures, output, and databases.q

Question 34

34A systems development approach used to quickly produce a model of user interfaces, user
interactions with the system, and process logic is called
A. Neural networking.
B. Prototyping.
C. Reengineering.
D. Application generation.

Answer 34

Answer (B) is correct.
Prototyping produces the first model(s) of a new system. This technique usually employs a software
tool for quick development of a model of the user interface (such as by report or screen), interaction of
users with the system (for example, a menu-screen approach or data entry), and processing logic (the
executable module). Prototyping stimulates user participation because the model allows for quick
exploration of concepts and development of solutions with quick results.

Question 35

35At what phase in the systems development process is a report generated that describes the content,
processing flows, resource requirements, and procedures of a preliminary system design?
A. File and database design.
B. Conceptual systems design.
C. Physical systems design.
D. Procedures design.

Answer 35

Answer (B) is correct.
The systems development life cycle begins with recognizing that there is a need for a new system,
gaining an understanding of the situation to determine whether it is feasible to create a solution, and
formulating a plan. A formal proposal for a new system is submitted to the IT steering committee,
describing the need for the application and the business function(s) that it will affect. Feasibility
studies are conducted to determine (1) the technology the new system will require, (2) the economic
resources that must be committed to the new system, and (3) the impact the new system will have on
current operations.

Question 36

36After using the report writer for several months, the marketing analysts gained confidence in using
it, but the marketing department manager became concerned. Whenever analysts revised reports they had written
earlier, the coding errors kept reappearing in their command sequences. The manager was sure that all the analysts
knew what the errors were and how to avoid them. The most likely cause of the reappearance of the same coding
errors is inadequate
A. Backups.
B. Change control.
C. Access control.
D. Testing

Answer 36

Answer (B) is correct.
Change control manages changes in information system resources and procedures. It includes a formal
change request procedure; assessments of change requests on technical and business grounds;
scheduling changes; testing, installing, and monitoring changes; and reporting the status of recorded
changes. The analysts were reusing erroneous code that should have been but was not corrected.

Question 37

37An electronics company has decided to implement a new system through the use of rapid
application development techniques. Which of the following would be included in the development of the new
system?
A. Deferring the need for system documentation until the final modules are completed.
B. Removing project management responsibilities from the development teams.
C. Creating the system module by module until completed.
D. Using object development techniques to minimize the use of previous code.

Answer 37

Answer (C) is correct.
The new system would be developed module by module until completed.

Question 38

38Management of a company has a lack of segregation of duties within the application environment,
with programmers having access to development and production. The programmers have the ability to implement
application code changes into production without monitoring or a quality assurance function. This is considered a
deficiency in which of the following areas?
A. Change control.
B. Management override.
C. Data integrity.
D. Computer operations.

Answer 38

Answer (A) is correct.
Over the life of an application, users are constantly asking for changes. The process of managing these
changes is systems maintenance, and the relevant controls are program change controls. Thus, if
programmers can implement application code changes into production without monitoring or a quality
assurance function, program change controls are deficient.

Question 39

39Which of the following is a correct statement regarding phased conversion?
A. The old system is shut down, and the new one takes over processing immediately.
B. The old and new systems both run at full capacity for a given period.
C. One function at a time of the new system is placed in operation.
D. One branch, department, or division at a time is fully converted to the new system.

Answer 39

Answer (C) is correct.
Information technology conversion can involve hardware, operating systems, database management
systems, and applications. Conversion methods utilized are (1) direct cutover, (2) pilot conversion, (3)
phased conversion, and (4) parallel conversion. Under phased conversion, one function of the new
system at a time is placed in operation. For instance, if the new system is an integrated accounting
application, accounts receivable could be installed, then accounts payable, cash management, materials
handling, etc.

Question 40

40All of the following are characteristics associated with direct cutover conversion except
A. Time-saving.
B. Risky.
C. Inexpensive.
D. Safe.

Answer 40

Answer (D) is correct.
Direct cutover conversion involves simultaneously shutting down the old system and having the new
one take over processing immediately. Direct cutover is the least expensive and time-consuming
strategy, but it is also the riskiest.

Question 41

41What should a company do when seeking competitive advantages in planning for the
implementation of a new software system?
A. Design an optimal process and then align the software.
B. Design the software to fit the existing processes.
C. Direct manpower to the nonbottleneck process areas.
D. Allow management to dictate processes.

Answer 41

Answer (A) is correct.
IT pervades every aspect of operations in a modern organization, and the IT steering committee must
study each request for a new process and either approve or deny it. Once a new process or system has
been approved, a project team is assembled, consisting of representatives of the end users who
requested it and the IT personnel who will design and build the software components that will support
it.

Question 42

42Which of the following conversion strategies is characterized by a manager removing the old
system and installing the new system without the possibility of reverting to the original?
A. Direct changeover.
B. Phased implementation.
C. Parallel conversion.
D. Integrated test facility.

Answer 42

Answer (A) is correct.
Under a direct changeover (direct cutover), the old system is shut down and the new one takes over
processing immediately, thereby removing the possibility of reverting to the original.

Question 43

43Which of the following large-scale conversion approaches to system implementation presents the
greatest risk to an organization?
A. Parallel.
B. Direct.
C. Phase-in.
D. Pilot.

Answer 43

Answer (B) is correct.
With direct changeover (direct cutover) conversion, the old system is shut down and the new one takes
over processing at once. This may be the least expensive and time-consuming strategy, but it is the
riskiest because the new system cannot be reverted to the original.

Question 44

44Which of the following features is classified as part of an expert system?
A. Use of electronic mail to route and approve purchase requisitions.
B. Automatic obligation of budget funds as soon as an order is issued.
C. Issuance of purchase requisition notices as soon as the on-hand balance reaches the reorder point.
D. Automatic placement of orders with suppliers who currently offer the best combination of price, freight
cost, and delivery time.

Answer 44

Answer (D) is correct.
An expert system is an interactive system that attempts to imitate the reasoning of a human expert in a
given field. It is useful for addressing unstructured problems when there is a local shortage of human
experts. The automatic placement of orders with the best combination of price, freight, and delivery
time requires the maintenance of a database for all suppliers that is constantly changing as terms and
conditions change. It simulates the decision process used by purchase managers.

Question 45

45The purchasing department buys cleaning compound from four different companies. The
computerized purchasing system uses a decision table to select a vendor based on continually changing costs,
delivery dates, and past experience. This is an example of a(n)
A. Base case system evaluation.
B. Expert system.
C. Parallel simulation.
D. Chargeback system.

Answer 45

Answer (B) is correct.
Expert systems are systems that emulate management decision rules and can learn as the environment
changes. In this case, as suppliers change their terms and prices, the system will learn new
combinations that minimize total order cost.

Question 46

46Which of the following artificial intelligence information systems cannot learn from experience?
A. Neural networks.
B. Case-based reasoning systems.
C. Rule-based expert systems.
D. Intelligent agents

Answer 46

Answer (C) is correct.
Rule-based expert systems function on the basis of set rules to arrive at an answer. These cannot be
changed by the system itself. They must be changed by an outside source (i.e., the computer
programmer).

Question 47

47Which one of the following incorporates making the best decisions possible, using a logical
approach by asking a series of questions, by using reasoning, and by allowing subjective inputs and outputs?
A. Decision support systems.
B. Expert systems.
C. Multi-networking.
D. Teleprocessing.

Answer 47

Answer (B) is correct.
An expert system is software designed to perceive, reason, and understand. An expert system is an
interactive system that asks a series of questions and uses knowledge gained from a human expert to
analyze answers and come to a decision. The system is developed by using a continuous process of
revision. As new knowledge or decision-making strategies become available, the information can be
incorporated into the system.

Question 48

48In an effort to recognize improvement opportunities, a company is reviewing its in-house systems.
The best reason for the company to consider switching to cloud computing as a solution is that it
A. Is the best way to secure sensitive corporate information.
B. Is accessible only from within the company on its intranet.
C. Usually has lower upfront costs for equipment and maintenance.
D. Provides better program modification options.

Answer 48

Answer (C) is correct.
With cloud computing, organizations are relieved of the need to manage the storage of both application
and data. It is typically pay-per-use and self serviced. Hence, it usually has lower upfront costs for
equipment and maintenance.

Question 49

49Cloud computing can best be defined as a model that
A. Streamlines business processes onto a well-secured and highly available in-house e-commerce platform
to optimize customers’ online experience.
B. Is designed for rapid application deployment by making several virtual servers run on one physical host.
C. Allows users to access network resources from remote locations through a virtual private network.
D. Allows organizations to use the Internet to access and use services and applications that run on remote
third-party technology infrastructure.

Answer 49

Answer (D) is correct.
Cloud computing can be used for management and storage of both applications and data where all the
software and data are stored via the Internet. It allows organizations to access services and applications
that run on remote third-party hosts.

Question 50

50A company has abandoned the large array of dedicated servers it formerly used to store and provide
access to its database. The company has entered into a contract with a provider who will guarantee storage of the
database at its own location along with access over the Internet. This arrangement is an example of
A. Distributed computing.
B. Cloud computing.
C. Wide area network.
D. Ethernet.

Answer 50

Answer (B) is correct.
Cloud computing is a popular term relating to on-demand access to resources that are accessed on the
Internet and shared by others. The entity has the ability to choose and pay for only the applications
needed from the array (cloud) of resources, reducing the need for a large investment in IT
infrastructure.

Question 51

51A company is considering a move to a Software-as-a-Service (SaaS) offering instead of a
traditional in-house application. Which of the following concerns is unique to SaaS?
A. Disaster recovery capabilities and documented recovery procedures.
B. User credential setup and control over the actions that employees can perform.
C. Allocation of software expenses and overhead charged to departments.
D. Ownership of processed data and costs of data migrations.

Answer 51

Answer (D) is correct.
Software-as-a-Service is one of the three primary cloud services. A concern for companies considering
SaaS is ownership of processed data because, compared to traditional in-house systems, cloud services
are not as stringent in the maintenance of ownership and are more susceptible to unauthorized access
through hacking. Additionally, unlike a traditional in-house system, the use of cloud computing will
likely incur additional costs when data migrations occur.