Unit 5 Test Flashcards
How are vendors able to reduce the unit cost of general accounting systems to a fraction of in-house development costs?
By mass producing a standard system By allowing users to customize their system By providing flexibility through modules By producing a specialized system
By mass producing a standard system
The correct answer is “By mass producing a standard system.” By mass producing a standard system, the vendor can reduce the unit cost of these systems to a fraction of in-house development costs.
Which systems come with all primary processing modules programmed and are basic system structures on which to build?
Backbone systems General accounting systems Office automation systems Special-purpose systems
Backbone systems
The correct answer is “Backbone systems.” Backbone systems provide a basic system structure on which to build, and they come with all the primary processing modules programmed.
What is the outcome of a formal and well-controlled systems development process?
- Accounting information systems applications that concentrate on only external controls.
- Accounting information systems applications that are designed to store data but not report data.
- Accounting information systems applications that are free from internal control weaknesses.
- Accounting information systems applications that need internal control support.
Accounting information systems applications that are free from internal control weaknesses.
The correct answer is “Accounting information systems applications that are free from internal control weaknesses.” A materially flawed financial application can corrupt financial data, which may then be incorrectly reported in financial statements.
Which systems development participants are outside consultants who work with a development team to ensure that the systems development process is properly implemented and controlled?
Database designers End users Stakeholders Systems professionals
Stakeholders
The correct answer is “Stakeholders.” Stakeholders work with the development team to ensure that users’ needs are met, that adequate internal controls are designed into the information systems under construction, and that the systems development process itself is properly implemented and controlled.
What is a drawback of a backbone system such as an enterprise resource planning (ERP) system?
Small array of modules Large cost Little help for dealing with many business processes Bulky interface into a single system
Large cost
The correct answer is “Large cost.” Customizing a commercial system can be expensive and time consuming.
What is a characteristic incorporated into a disaster recovery plan of a vendor-supported system?
Backup of programs Application installation Troubleshooting System maintenance
The correct answer is “Backup of programs.” Storing and retrieving data is part of an organization’s disaster recovery plan.
Which type of system would an organization purchase if it is looking for a commercial system that is developed and maintained by a provider?
In-house system Vendor-supported system Backbone system Special-purpose system
Vendor-supported system
The correct answer is “Vendor-supported system.” A vendor-supported system is a system that a vendor develops and maintains for a client organization.
What might a vendor-supported system offer?
- Backup and recovery of programs and data as part of an organization’s disaster recovery plan
- Backup and recovery of programs and data as part of an organization’s social responsibility plan
- Backup and recovery of programs and data as part of an organization’s succession plan
- Backup and recovery of programs and data as part of an organization’s start-up plan
Backup and recovery of programs and data as part of an organization’s disaster recovery plan
The correct answer is “Backup and recovery of programs and data as part of an organization’s disaster recovery plan.” This is one of the available options for organizations purchasing vendor-supported systems.
All business processes are examined to identify waste and non-value-added activities and to take steps to eliminate them.
Which non-value-added activity can a responsive, user-oriented information system eliminate?
Ordering materials Entering orders Counting inventory Processing raw materials
Counting inventory
The correct answer is “Counting inventory.” The responsive, user-oriented information system can eliminate counting of items and inventory. Counting does not add value.
What causes system failures?
System-organization fit End-user involvement in development System design System requirements
System design
The correct answer is “System design.” A poorly designed system will fail.
How do accountants provide technical support during the systems development phase?
By formulating a solution to solve problems By building the system By gathering facts about problems with the current system By choosing the correct depreciation method
By choosing the correct depreciation method
The correct answer is “By choosing the correct depreciation method.” The accountant must provide expertise to the systems design process.
Which system should be selected if a firm needs to implement software immediately?
Commercial system In-house system System patch Customized system
Commercial system
The correct answer is “Commercial system.” Commercial systems can be implemented immediately.
Which individuals have an interest in a system but are not formal end users?
Operations personnel Management Stakeholders Systems professionals
Stakeholders
The correct answer is “Stakeholders.” Stakeholders are individuals who have an interest in a system but are not formal end users. These include the internal steering committee that oversees systems development, internal auditors including IT auditors, and external auditors acting as consultants or serving in the role of internal auditor.
Who oversees systems development?
An internal steering committee Auditors Systems professionals Accountants
An internal steering committee
The correct answer is “An internal steering committee.” The internal steering committee oversees systems development.
A type of backbone, enterprise resource planning (ERP), offers a vast array of modules for dealing with almost every conceivable business process.
What is a major drawback of a system with such extensive customization?
A drawback of extensive customization is integration. A drawback of extensive customization is lack of storage. A drawback of extensive customization is lack of user friendliness. A drawback of extensive customization is expense.
A drawback of extensive customization is expense.
The correct answer is “ A drawback of extensive customization is expense.” Customizing a commercial system can be expensive.
Which systems often have long development timelines for firms?
Custom in-house systems Office automation systems Turnkey systems General accounting systems
Custom in-house systems
The correct answer is “Custom in-house systems.” Months or even years of development may pass before a custom system can be fully implemented.
What do stronger application controls translate into?
Lower financial reporting risk Higher financial reporting errors Lower financial reporting standards Higher financial reporting risk
Lower financial reporting risk
The correct answer is “Lower financial reporting risk.” There is less room for risk.
Which systems development participants are outside consultants who work with a development team to ensure that the systems development process is properly implemented and controlled?
Stakeholders Database designers Systems professionals End users
Stakeholders
The correct answer is “ Stakeholders.” Stakeholders work with the development team to ensure that users’ needs are met, that adequate internal controls are designed into the information systems under construction, and that the systems development process itself is properly implemented and controlled.
What is a drawback of a backbone system such as an enterprise resource planning (ERP) system?
Large cost Small array of modules Little help for dealing with many business processes Bulky interface into a single system
Large cost
The correct answer is “ Large cost.” Customizing a commercial system can be expensive and time consuming.
What might a vendor-supported system offer?
- Backup and recovery of programs and data as part of an organization’s succession plan
- Backup and recovery of programs and data as part of an organization’s start-up plan
- Backup and recovery of programs and data as part of an organization’s social responsibility plan
- Backup and recovery of programs and data as part of an organization’s disaster recovery plan
Backup and recovery of programs and data as part of an organization’s disaster recovery plan
The correct answer is “ Backup and recovery of programs and data as part of an organization’s disaster recovery plan.” This is one of the available options for organizations purchasing vendor-supported systems.
Which systems have long implementation timelines?
Custom in-house systems Office automation systems Turnkey systems Backbone systems
Custom in-house systems
The correct answer is “ Custom in-house systems.” Months or even years may pass before a custom system can be fully implemented.
All business processes are examined to identify waste and non-value-added activities and to take steps to eliminate them.
Which non-value-added activity can a responsive, user-oriented information system eliminate?
Entering orders Ordering materials Processing raw materials Counting inventory
Counting inventory
The correct answer is “Counting inventory.” A responsive, user-oriented information system can eliminate counting of items and inventory. Counting does not add value.
How does implementation affect the success of a system?
Improper implementation increases reliance on strategy. Improper implementation leads to system failure. Improper implementation increases non-value-added activities. Improper implementation decreases integration time.
Improper implementation leads to system failure.
The correct answer is “ Improper implementation leads to system failure.” Most system failures are due to poor designs and improper implementation.
If a firm purchases an accounts payable module, which type of system is it purchasing?
General accounting system Office automation system Special purpose system In-house system
General accounting system
The correct answer is “ General accounting system.” Accounts payable is an example of a general accounting system module.
Which process are planning, authorizing, scheduling, accounting for, and controlling necessary parts of?
Financial management process Business management process Systems development process Human resource management process
Systems development process
The correct answer is “ Systems development process.” A manufacturing process produces a complex product through a series of stages.
A vendor-supported system provides the development and maintenance of database tables for an application.
What is being provided when a vendor does this?
Database conversion Database training Database interfacing Database support
Database support
The correct answer is “ Database support.” Database support involves developing and maintaining database tables for an application.
The applications that emerge from the systems development life cycle (SDLC) must possess controls that are in accordance with the provisions of which Statement on Auditing Standards?
Statement on Auditing Standards No. 109 Statement on Auditing Standards No. 137 Statement on Auditing Standards No. 134 Statement on Auditing Standards No. 122
Statement on Auditing Standards No. 109
The correct answer is “Statement on Auditing Standards No. 109.” The applications that emerge from the SDLC must possess controls that are in accordance with the provisions of Statement on Auditing Standards No. 109.
What is the multistage process that guides an organization’s management through the in-house development or purchase of information systems?
Acquisition process (AP) Information collection (IC) Systems development life cycle (SDLC) Procurement process (PP)
Systems development life cycle (SDLC)
The correct answer is “Systems development life cycle (SDLC).” The systems development life cycle is the process of acquiring new information systems.
