Assignment
Chapter 6: DEVELOPING AND IMPLEMENTING EFFECTIVE ACCOUNTING INFORMATION SYSTEMS
True-False Questions:
1. The first stage in the systems development life cycle is analyzing the company's current system.
2. The first stage in the systems development life cycle is planning the systems study itself.
3. Most systems development life cycles consist of mutually exclusive activities, with little overlap between the stages.
4. Accountants do not have to worry much about systems studies-they are rarely affected by them.
5. The search for more efficient ways to serve customers is an important reason why business organizations perform systems studies.
6. One way to help ensure a systems study uses a "broad point of view" is to assemble an interdisciplinary study team.
7. A study team should approach a systems study with a narrow point of view in order to focus directly on the system and not be distracted by peripheral issues.
8. The members of a systems study team should be from the same discipline or area so that they can work together well.
9. An important first step in the systems analysis phase of a systems study is a preliminary investigation of the system under study.
10. Top management involvement is critical to the success of a systems study.
11. When a waitress delivers food late to a customer because the kitchen is backed up, the "late food" is an example of a symptom while the "kitchen being backed up" is the real cause of the problem.
12. "Analysis paralysis" means "analyzing a system to death" at the expense of reaching a conclusion.
13. The three major types of organizational goals discussed in the chapter are (1) general systems goals, (2) computer goals, and (3) salary goals.
14. "Cost" is rarely a concern in developing information system. What is more important is that the anticipated benefits of a new AIS exceed its costs.
15. In the context of systems analysis, the goal of developing a "flexible AIS" means that the system should be able to process a variety of transactions and produce a variety of outputs.
16. It is not important to satisfy top management goals when creating a new information system because most such systems are used by operating employees, not top managers.
17. The information needs of top managers tend to be the most detailed, and focus on short range planning and budgeting.
18. The information needs of operating managers are normally easier to determine than those of top managers because their decision making tends to be better defined and narrower in scope.
19. The developers of new accounting information systems should not be concerned with non-monetary figures because these are mostly irrelevant to accountants.
20. One method of studying a current AIS is to observe the system in operation.
21. Employee behavioral problems are rarely important in systems analysis and design work because most systems are computer-based, not human-based.
22. Systems survey work might include gathering data on an existing information system or observing the current system in operation.
23. An important deliverable from the analysis portion of a systems study is the final systems analysis report, which should be sent to the company's steering committee.
24. When considering the design of a new system, four types of feasibility concerns are (1) technical feasibility, (2) operational feasibility, (3) schedule feasibility, and (4) legal feasibility.
25. An example of "legal feasibility" is whether or not a proposed computer system can comply with state and federal statutes.
26. "Schedule feasibility" is not important to a study team if a company already has an automated system.
27. "Economic feasibility" refers to whether a company can afford a proposed system.
28. "Schedule feasibility" refers to whether or not computer vendors can provide bids in a timely manner.
29. Unless the human element of a systems change is considered, the best designed system "on paper" will often be an operational failure when it is implemented.
30. In designing an AIS, system developers should design the outputs of the system first, not the inputs.
31. The term "cost/benefit" is most closely associated with the economic feasibility of a proposed accounting information system.
32. For a system to be totally feasible, all feasibility areas must be considered in the
process.
33. When developing a new AIS, it is important for designers to delay developing controls for it so that they can retrofit controls after the new system is best understood.
34. When developing the specifications for a new AIS, designers begin with outputs-not inputs or processing requirements.
35. Within the context of systems design, an example of a "demand report" is one that shows anticipated demand for a new product.
36. Within the context of systems design, an example of an "exception report" is one that identifies exceptional employees, as judged by popular vote.
37. An example of a soft-copy report is one that identifies slow-moving items where demand is soft.
38. Prototyping is an approach to systems design whereby a design team develops a simplified shell of working software for a proposed information system.
39. An advantage of prototyping is that models are usually developed without the aid of a computer.
40. Within the context of systems design, the "make or buy" decision refers to whether an organization should purchase an existing system, or develop its own system.
41. Another common term for "prewritten software" is "canned software."
42. The term "RFP" stands for "reference project."
43. The term "RFP" stands for "relative forthcoming price."
44. The term "RFP" stands for "request for proposal."
45. When comparing computer vendor proposals, the reputations of these vendors should also be evaluated.
46. An alternative to developing its own AIS, an organization might consider outsourcing the processing to an external company.
47. An example of knowledge process outsourcing (KPO) is processing tax returns.
48. Knowledge process outsourcing (KPO) mainly refers to outsourcing to offshore companies in places where labor is cheap.
49. One goal that outsourcing rarely achieves is saving money.
50. In selecting a vendor finalist, a steering committee can use a point-scoring analysis to evaluate the proposals of alternate computer vendors.
51. Systems study work ends when the follow up analysis shows that no further adjustments need to be made to the newly implemented system.
52. The implementation and initial operation phase of a systems study is also known as the "action" phase of a systems study.
53. One implementation problem is installing a new system that is not adequately documented or tested.
54. PERT is an acronym for "Project Expert and Resource Technique."
55. The purpose of PERT is to coordinate the activities in a project, such as a systems implementation project.
56. One thing that can go wrong during systems implementation is implementing a system that has not been completely tested.
57. A PERT network diagram reflects the logical sequence of systems implementation activities.
58. The "slack time" for a PERT activity represents the amount of time the activity can be delayed without delaying the entire project.
59. The critical path represents the longest path through a PERT network diagram.
60. Gantt charts are the same as PERT charts.
61. Project management software allows users to perform "what-if" analysis for example, to determine how different work schedules might lower the time to install a new computer system.
62. Controls are rarely established during the implementation of a new computer system-this must wait for the first audit of the system.
63. During systems implementation, "converting computer files" is only necessary if the files are currently in manual formats.
64. A "turnkey" computer system is a complete set of computer hardware and software that allows the user to avoid technical decisions and to begin operating quickly.
65. The terms "parallel conversion" and "direct conversion" are different terms for the same thing.
66. As part of the systems follow up work, an implementation team can watch employees perform their work activities to ascertain whether the employees are executing their assigned job functions correctly.
67. At the conclusion of the initial follow-up study, a project leader will prepare a report called a post-implementation review report.
68. The tasks involved in "systems maintenance" are normally performed by external vendors, and rarely by a company's internal information systems department.
69. When using outsourcing, a company needing data processing services hires an outside organization to handle all or part of these services.
70. A possible advantage of outsourcing is that it frees corporate assets for other projects.
71. Outsourcing can help a company avoid seasonal fluctuations in its business.
72. Outsourcing facilitates downsizing.
73. A disadvantage of outsourcing is that a company can lose control of its IT systems and data processing.
Multiple-Choice Questions:
74. Which of these is not a stage in the systems development life cycle?
a) Planning and investigation
b) Analysis
c) Design and acquisition
d) Implementation, followup, and maintenance
e) All of these are stages in the systems development life cycle
75. The acronym SDLC stands for
a) Systems design and logic for computers
b) Study, dedication, life, and conviction
c) Systems development life cycle
d) Secondary development and allocation
76. The totality of computer systems in a firm is called its:
a) Applications portfolio
b) Systems burden
c) BPR collection
d) IT department
77. Which of these should come first when performing a systems study?
a) Systems analysis
b) Systems design
c) Preliminary investigation
d) Systems audit
78. Which of these acronyms is not normally associated with the systems studies?
a) SDLC
b) RFP
c) PERT
d) SOX
79. Which of these individuals is least likely to participate in a system's study?
a) Internal auditor
b) External auditor
c) Top manager
d) Member of the IT department
80. An intensive investigation of a company's present information system in order to discover systems weaknesses is termed a:
a) Systems study
b) Systems follow up
c) Systems design
d) Systems survey
81. Which of these is not a phase in the life cycle of an information system?
a) Planning
b) Analysis
c) Control
d) Implementation
82. The four phases of the systems development life cycle end with this phase:
a) Analysis
b) Design
c) Implementation, follow-up, and maintenance
d) Development
83. Which of these is most likely to be the first task in a systems study?
a) Systems analysis
b) Systems design
c) Preliminary investigation
d) any of these are possible-it depends upon the system under study
84. According to the chapter, which of these comes closest in meaning to the term "systems approach?"
a) Narrow point of view
b) Broad point of view
c) Focus on achieving those goals important to computerized systems
d) Focus first and foremost on computerization
85. Which of the following is least likely to be a member of a study team?
a) CEO of a company
b) Internal auditor or accountant
c) IT specialist
d) Middle-level manager who uses the system
86. Which of these statements is true?
a) Accountants need not bother with systems studies-they are mostly performed by IT specialists
b) System studies enable bright accountants to express ideas for improving a system
c) Systems studies rarely involve accounting information systems
d) all of these are true
87. A poorly-planned information system can result in:
a) Employee resistance and even sabotage
b) Inflexible systems that are hard to maintain or modify
c) Systems that solve the wrong problems
d) all of these are true
88. A waitress brings cold food to a customer, who complains. Which of these is most likely to be the cause of the problem and not a symptom of this problem?
a) The angry customer
b) An irritable waitress
c) The cold food itself
d) The inability of the kitchen staff to keep up with many orders at once
89. A student fails a course at his university. Which of these is most likely to be the cause of the problem and not a symptom of this problem?
a) An angry student
b) The student gets placed on probation
c) The student's mother pays an angry visit to the dean of students
d) The student did not study for the course
90. Which of these is not a general systems goal?
a) Relevant output
b) Cost awareness
c) Flexible structure
d) Higher salaries
91. The systems goals of a company's operating management include:
a) Cost awareness
b) Relevant output
c) Flexible structure
d) all of the above
e) none of the above
92. Compared to top management's system information goals, obtaining the information needs of operating management is normally:
a) Easier
b) More difficult
c) No different
d) Not required
93. One mistake that a study team can make when performing a systems analysis is to:
a) Perform a preliminary investigation first
b) Have employees participate in the systems study work
c) Utilize a "systems approach" in performing the systems study
d) Ignore the strong points of the present system
94. Which of the following is an objective of a systems survey?
a) To understand management information needs
b) To understand the human element and gain cooperation from people involved with the system
c) To enlist management participation and cooperation
d) all of the above are objectives of a systems survey
95. The steering committee in a systems study:
a) Consists entirely of outside consultants
b) Represents management in a systems study
c) Should include external auditors
d) Is typically composed entirely of end users
96. This type of survey instrument best allows employees to answer in their own words:
a) Open-ended questionnaire
b) Closed-ended questionnaire
c) Multiple-choice questionnaire
d) Fill-in-the-blank questionnaire
97. This is a common method for reviewing a company's internal control procedures:
a) Use an informant
b) Consult historical records
c) Get top management's opinions
d) Use internal control questionnaires
98. Which of these is not a logical procedure that is followed in the systems analysis phase of a systems study?
a) Define the problem(s) in the current system
b) Identify the company's goals
c) Perform a systems survey to acquire information about the current system
d) Generate possible solutions to solve the company's problem(s)
e) all of the above are systems analysis procedures
99. Once all facts and data have been collected in the systems survey, this activity can begin:
a) The preliminary investigation
b) Appoint a steering committee
c) Perform the data analysis
d) Perform the systems implementation
100. Systems design usually comes after:
a) Systems analysis
b) Systems funding
c) Systems deletion
d) Systems implementation
101. Which of these is not a common dimension in a feasibility study?
a) Technical
b) Operational
c) Schedule
d) all of these are common dimensions
102. The most important factor in planning for a major change in a computer-based system is:
a) The organization of the IT department
b) The ability of the systems programmers to write appropriate software
c) The selection of the most advanced computer equipment
d) Giving the systems people a free hand in all changes
e) The participation of top management in the planning process
103. In conducting a feasibility study, operational feasibility refers to whether:
a) A proposed system is attainable given the existing technology
b) A manager can coordinate and control the activities of the systems department
c) An adequate computer site exists for the proposed system
d) The proposed system will produce economic benefits that exceed its costs
e) The system can be used effectively within the operating environment of an organization
104. Which of these are the five feasibility areas that a design team should examine?
a) Technical, legal, social, economic, schedule
b) Economic, software, legal, hardware, schedule
c) Organizational, hardware, operational, legal, economic
d) Schedule, economic, operational, technical, legal
105. Which one of these design feasibility areas is typically performed by accountants?
a) Economic
b) Organizational
c) Hardware
d) Schedule
e) Social
106. Which of the following is not a general objective when designing an AIS?
a) A system should provide information that is timely and relevant for decision making by management and operating personnel
b) The output of a system should be highly accurate
c) A system should have sufficient capacity to accommodate levels of normal activity; any additional capacity proves too costly in the long run
d) A system should be as simple as permitted so that its structure and operation can be easily understood and its procedures easily accomplished
e) A system should be flexible to accommodate changes of a reasonable magnitude when required
107. Converting to a new computerized system will typically entail large dollar expenditures to make the new system operative. These monetary expenditures normally are incurred for:
a) Transferring a company's financial data from its present storage media to computerized storage media
b) Testing the operations of the new system before it replaces the old system
c) Establishing good internal controls for the new computerized system
d) all of the above
108. Which of these is true when designing control procedures for a computer system?
a) Control procedures are irrelevant
b) Control procedures should be designed and implemented after the proposed system is functioning properly
c) Control procedures should be built into the system as it is designed
d) Control procedures should be implemented regardless of their costs
109. All of these are examples of typical benefits that a company might enjoy when switching to a new computer system except:
a) Reduced clerical costs
b) Enhanced sales
c) Better customer service
d) Lower hardware and software costs
110. All of these are examples of typical costs that a company will usually incur when switching to a new computer system except the costs of:
a) New computer hardware and software
b) Hiring additional employees
c) Operating the new system
d) Site preparation
e) Lost customers
111. When designing a computer based information system, the initial step in the systems design process is to identify:
a) The required outputs
b) The source documents that serve as the basis for input
c) The processing required
d) The computers that will be used
e) The data required for input
112. A complete, ready-to-go system of computer hardware and software is also often called a(n):
a) Turnkey system
b) Canned system
c) Kitchen-sink system
d) All-in-one system
113. Which of these best describes prototyping as used in practice?
a) Reiterative process
b) One-time trial
c) Top management exercise
d) all of these describe prototyping
114. All of these are advantages of prototyping except:
a) Involves end users and therefore obtains a better definition of user needs
b) Involves top management and therefore better achieves strategic goals
c) Requires a comparatively short period of time
d) all of these are typically advantages of prototyping
115. Which of these is a disadvantage of prototyping?
a) Requires inputs from end users
b) Requires inputs from top management
c) Requires an iterative testing process that takes some time and patience
d) all of these are common disadvantages with prototyping
116. All of these are common selection criteria for choosing a final software package from a vendor except:
a) Evaluate the performance capabilities of each proposed system
b) Weigh the costs and benefits of each proposed system
c) Evaluate the maintainability of each proposed system
d) all of these are common selection criteria for selection
117. Within the context of systems studies, a point-scoring system is commonly used:
a) Selecting employees to use for such studies
b) To identify the most productive employees
c) To rank processing alternatives for a given task
d) To rank competing systems when purchasing a system
118. The choice of developing its own system or acquiring a software package from an external vendor is also called this type of decision:
a) Point-scoring decision
b) Make-or-buy decision
c) Overall feasibility decision
d) PERT decision
119. Which of these is not a common selection criterion when choosing an AIS?
a) Performance capabilities of each proposed system
b) Compatibility of each proposed system with existing systems
c) Vendor stability and support
d) The costs and benefits of each proposed system
e) all of these are common selection criteria
120. Which of these is an alternative to purchasing an AIS or developing one inhouse?
a) Prototyping
b) BPO
c) Change management
d) Direct conversion
121. When using a point-scoring system, the winner is usually the choice with:
a) The lowest score
b) The highest score
c) The median score
d) The vendor with the most resources
122. All of the following are things that might go wrong when implementing a new system except:
a) An untested system is installed anyway
b) Complete documentation is lacking
c) Not enough resources are allocated for subsequent maintenance
d) all of these are common missteps in systems implementation
123. After successfully implementing a new system, what activities should the implementation team normally perform in their follow-up work?
a) Evaluate the control procedures of the new system
b) Determine if output schedules for reports are being met under the new system
c) Observe some of the employees' work performances under the new system
d) all of the above activities should normally be performed
124. The most time consuming path in a PERT network is called the:
a) Slack path
b) Completion path
c) Critical path
d) none of the above
125. In a PERT network diagram, the amount of delay time that can occur in a non-critical activity and still not delay the estimated completion time of a systems implementation project is called:
a) Slack time
b) Noncritical time
c) Critical time
d) none of the above
126. A simple diagram that shows estimated completion times versus actual completion
times for the various activities in a systems implementation project is a(n):
a) E-R diagram
b) PERT chart
c) Gantt chart
d) Data flow diagram
127. With the use of this, a company hires an outside organization to handle all or part of its data processing services.
a) Turnkey system
b) Gantt chart
c) Slack time
d) Outsourcing
128. Which of these is not generally a reason to outsource:
a) Retain control over data
b) Attractive business solution
c) Lower data processing costs
d) Avoid seasonal fluctuations
Questions 129 - 139 refer to the following chart. Numbers to the right of equal signs are in "weeks."
129. This diagram is an example of a:
a) PERT chart
b) Gantt chart
c) System flowchart
d) Waterfall model
130. In this chart, the letters represent:
a) Activities
b) Milestones
c) Employees
d) Data values
e) Position numbers
131. In this chart, the circles represent:
a) Activities
b) Milestones
c) Employees
d) Data values
e) References to other charts
132. In this chart, note that two arrows point to circle 5. This means that:
a) Activity E requires two subsequent activities
b) Activity H requires two precedent activities
c) Both activities C and D require activity H to be completed first
d) none of these
133. In PERT diagrams the shortest completion time of the entire project is equal to:
a) The shortest path through the network
b) The longest path through the network
c) The easiest path through the network
d) The most difficult path through the network
e) The path of least resistance
134. Which of the following is the critical path in this network?
a) ACH b) BFI c) EG d) EDH e) ABDG
135. The latest starting time for activity H is the beginning of week:
a) 2 b) 4 c) 6 d) 9 e) none of these
136. The earliest starting time for activity G is the beginning of week:
a) 2 b) 4 c) 5 d) 9 e) none of these
137. The slack time for activity D is:
a) 2 b) 4 c) 6 d) 9 e) none of these
138. If the project leader now believes that C should be 6 (not 4), the critical path is now:
a) EG b) ACH c) BFI d) ABC e) none of these
139. The information in this chart is commonly summarized in a second, bar chart called a:
a) Gantt chart
b) Organization chart
c) Control chart
d) Data flow diagram
e) Scatter chart
Matching Questions
For the following terms find the correct definition below and place the letter of that response in the blank space next to the term. Each definition is used only once - there are two terms that are not used.
140. ______ modular conversion
141. ______ direct conversion
142. ______ legal feasibility
143. ______ scope creep
144. ______ applications portfolio
145. ______ feasibility evaluation
146. ______ critical path
147. ______ operational feasibility
148. ______ prototype
149. ______ slack time
150. ______ technical feasibility
151. ______ change management
152. ______ parallel conversion
153. ______ Gantt chart
154. ______ benchmark test
155. ______ economic feasibility
156. ______ PERT
157. ______ preliminary investigation
158. ______ schedule feasibility
159. ______ turnkey system
Definitions:
A. Computer experts typically work on this phase of the feasibility evaluation because a thorough understanding of IT is essential
B. The design team attempts to assess whether the anticipated benefits of the system exceed its projected costs
C. Systems work where the design team determines the practicality of alternative proposals
D. This phase of a systems study requires the design team to estimate how long it will take a new or revised system to become operational
E. Software that interfaces with suppliers and customers
F. Software from independent vendors that comes bundled (i.e., combined) with hardware
G. Includes an enterprise system, any specialized information systems, or other separate systems for functional areas such as accounting, marketing, and human resources
H. The longest-path to project completion and also the shortest completion time of the entire project
I. Conversion to a new system where the new system is implemented in stages
J. A scaled-down, experimental version of a nonexistent information system that a design team can develop cheaply and quickly for user-evaluation purposes
K. A new or revised system should comply with all applicable federal and state statutes about financial reporting requirements, as well as the company's contractual obligations
L. For this phase of the system study, the design team must analyze the capabilities of current employees to perform the specific functions required by each proposed system and determine to what extent employees will require specialized training
M. A project leader first prepares a list of systems implementation activities, identifies the prerequisite activities that must be completed before others can start, and estimates the amount of time required to complete each activity
N. The most difficult issue in implementing a new system
O. The phrase used to describe delays in meeting the schedule for delivering a systems project
P. Conversion to a new system where the organization operates both the new and the old system for some period of time
Q. Conversion to a new system where the organization immediately discontinues use of the old system and uses the new system
R. The amount of delay time that can occur in each non-critical activity and still not delay the project
S. Useful for both scheduling and tracking the activities of systems implementation projects because actual progress can be contrasted with the planned progress
T. One way to examine the operating efficiency of a particular system
U. One important part of this work is to separate symptoms from causes
V. One of the four stages in the SDLC
Short Answer Questions
160. What is the purpose of a Systems Steering Committee if an outside consultant is hired to perform the system study?
161. Name several conditions when prototyping a system is useful.
162. What is a PERT chart and why is it helpful in planning a project?