Test bank accounting information system by turner 06 chapter

In order to match company strategy to IT systems, the company needs to have an IT governance committee and a formal process to select, design, and implement IT systems.. Either the IT go

ACCOUNTING INFORMATION SYSTEMS

CONTROLS AND PROCESSES

TURNER / WEICKGENANNT

CHAPTER 6: IT Governance

TEST BANK - CHAPTER 6 - TRUE / FALSE

1 IT governance is an issue for executives and top management Lower level managers and the

board of directors are outsiders in the process

2 In order to meets it obligation of corporate governance, the board of directors must oversee

IT

3 In order to match company strategy to IT systems, the company needs to have an IT

governance committee and a formal process to select, design, and implement IT systems

4 Either the IT governance or the system development life cycle are necessary in the strategic

management of IT systems

5 Once the system development life cycle has determined the priority it places on IT systems,

the IT governance committee will manage the development, implementation, and use of the systems

6 The IT governance committee should constantly assess the long-term strategy of the company

and determine the type of IT systems to purchase, develop and use

7 The systems development life cycle is responsible for the oversight and management of the IT

governance committee

8 Accounting software was often not available in the early days of computers which required

that the organization would develop, program, and implement their in-house accounting

software

9 Once the systems development life cycle (SDLC) is complete, it is not necessary to restart the

cycle unless something is brought to the attention of the IT governance committee to indicate that another cycle is required

10 It is likely that the IT governance committee will go back through the phases of the SDLC to

design new and improved IT systems

11 In the modern IT environment, it is necessary for an organization to follow each of the steps

in the SDLC in the order presented

12 The exact steps in the SDLC and/or their sequence are not as important as is the need to

formalize and conduct those steps completely and consistently

13 The IT governance committee will be constantly monitoring the IT system to look for fraud

and system abuse

14 If the operational feasibility determines that the operation will require new training of

employees, then the proposed upgrade or modification should be rejected

15 The economic feasibility study would answer the question about whether the benefits of the

proposed IT system outweigh the costs

16 When the IT governance committee uses both the strategic match and the feasibility study,

they will be better able to prioritize proposed changes to the IT systems

17 When the IT governance committee has made the decision as to which IT upgrades and/or

modifications are to made, their job is complete

18 Data collection in the system survey step of systems analysis involves documentation review

only

19 The purpose of observation in the system survey is to enable the project team to gain an

understanding of the processing steps within the system

20 During a documentation review, the team would examine only relevant documentation of the

proposed upgrade or modification

21 In order to gain a complete understanding of the system under study, the project team should

seek the opinions and thoughts of those who use the system in addition to observation and documentation review

22 The face-to-face nature of an interview is advantageous due to the fact that the interviewer

can clear up any misunderstandings as they occur and can follow up with more questions, depending on the response of the interviewee

23 One advantage of the interview process is efficiency

24 One advantage to the use of questionnaires is that they can be answered anonymously, which

allows the respondent to be more truthful without fear of negative consequences

25 The determination of user requirements is often discovered through the use of observation

and documentation review

26 The analysis phase is the critical-thinking stage of systems analysis

27 IT and business process reengineering have mutually enhancing relationships The business

processes should be supported by the IT capabilities

28 Business process reengineering takes place at the systems design stage of the SDLC

29 The last step of the systems analysis phase is to prepare a systems analysis report that will be

delivered to the IT governance committee

30 The steps within the design phase of the SDLC is the same, whether the organization intends

to purchase software or to design the software in-house

31 In general, purchased software is more costly but more reliable than software designed

in-house

32 While it is not necessary to hire a consulting firm, many organizations find that the special

expertise of consulting firms is most beneficial in the design and implementation of accounting system software

33 When in the systems design phase and creating an in-house accounting software, the

feasibility aspect is the same as in the systems planning stage

34 In general, designs that require more complex technology have a higher feasibility than

designs with less complex technology

35 When a company is revising systems, there are intangible benefits that are difficult to estimate

in dollars These intangible benefits should be included in the project team’s report

36 Because the users of reports need the reports on an ongoing basis as part of their jobs, it is

critical to have user feedback in the design of the details of the output reports

37 In general, the manual input method is less error prone that the electronic methods

38 In the detailed design phase, all of the individual steps within a process must be identified and

designed

39 The internal controls within a system must be designed in the implementation stage

40 It would not be necessary for the programming staff to have interaction with the accounting

staff during the systems implementation process, as all systems design was previously

completed

41 Software should never be implemented before it is tested

42 It is essential that accountants oversee the data conversion from the old system to the new

system to make sure that all accounting data is completely and correctly converted

43 The file or database storage for the new accounting system may not be different from the old

system

44 The longest and most costly part of the SDLC is the operation and maintenance

45 During the operation phase of the IT system, it is necessary that management receive regular

reports that will enable management to determine whether IT is aligned with business

strategy and meeting the objectives of the IT system

46 Once the SDLC has identified which types of IT systems are appropriate for the company, the

IT governance committee becomes the mechanism to properly manage the development, acquisition, and implementation of the IT system

47 Each organization may approach IT governance in a different manner, but each organization

should establish procedures for IT governance

48 The AICPA Trust Principles failed to include any reference to the internal control structure of

the IT systems

49 Diligent adherence to the SDLC process, by management, is part of fulfilling its ethical

obligations of stewardship and fraud prevention

50 As the result of the passage of the Sarbanes-Oxley Act, CPA firms have unlimited ability to

provide non-audit services to their audit clients

ANSWERS TO TEST BANK – CHAPTER 6 – TRUE / FALSE:

TEST BANK - CHAPTER 6 - MULTIPLE CHOICE

51 The process of determining the strategic vision for the organization, developing the long-term objectives, creating the strategies that will achieve the vision and objections, and implementing those strategies is referred to as

53 To fulfill the management obligations that are an integral part of IT governance, management need not focus on:

A Aligning IT strategy with the business strategy

B Hiring an acceptable IT manager

C Measuring IT’s performance

D Insisting that an IT control framework be adopted and implemented

54 Which of the following is not one of the approaches used to achieve the management of an IT control framework?

A Information Systems Audit and Control Association control objectives for IT

B The International Organization for Standardization 17799, Code of Practice for Information

Security Management

C The Information Technology Infrastructure Library

D Sarbanes-Oxley Act section on IT Controls

55 A group of senior managers selected to oversee the strategic management of IT is called:

A Systems Development Life Cycle

B Control Objectives for IT

C Practice for Security Management

D Information Technology Development

57 The IT governance committee is made up of many different individuals within the organization Which of the following would not be one of those individuals?

A Chief Information Officer

B Chief External Auditor

C Chief Executive Officer

D Top Managers from User Departments

58 The evaluation of long-term, strategic objectives and prioritization of the IT systems in order to assist the organizations in achieving its objectives is called:

60 This phase of SDLC involves the planning and continuing oversight of the design,

implementation, and use of the IT systems

A Systems Analysis

B Systems Implementation

C Systems Planning

D Systems Design

61 The study of the current system to determine the strengths and weaknesses and the user needs

of that system is called:

63 The creation of the system that meets user needs and incorporates the improvements identified

by the systems analysis phase is called:

A Systems Planning

B Systems Design

C Systems Analysis

D Operation and Maintenance

64 The set of steps undertaken to program, test, and activate the IT system as designed in the system design phase is called:

67 The expanded SDLC presented in the textbook expands the processes within the system design phase This is necessary because:

A It necessary for most companies to create their own software

B The design phase needs to include the programming activities of self-created software

C There is usually more than one software or system type that will meet the needs of the

A Design or buy the system selected

B Identify the alternative system approaches

C Evaluate the fit of each of the alternatives to company needs

D Implement the alternative selected

69 The process of matching alternatives system models to the needs identified in the system analysis phase is called:

A Conceptual Design

B Systems Analysis

C Systems Planning

D Evaluation and Selection

70 The process of assessing the feasibility and fit of each of the alternative conceptual approaches and selecting the one that best meets the organization’s needs is termed:

72 When attempting to prioritize IT projects, the IT governance committee needs to consider:

A The assessment of IT systems and their match to strategic organizational objectives

B The feasibility of each of the requested modifications or upgrades

C Both of the above

D None of the above

73 A company has stated that the main strategic objective is to improve the accounts payable

function within the organization There are limited resources for IT upgrades and modifications The IT governance committee has received IT update requests from the public relations

department, human services, and vendor satisfaction department Given this information, which would be the likely be the first upgrade implemented?

A Public relations would be first because it would include all areas of the business - vendors,

employees, and customers

B Vendor satisfaction would be first because it would be most in line with the strategic

objective of the company

C Human services would be the first because the employees are the ones who are most

affected by changes in the IT departments

D It is not possible to make a decision without further information

74 The need to match IT systems to organizational objectives emphasizes the need for the IT

governance committee to include top management as its members because:

A These managers establish strategic objectives and are in the best position to assess the fit

of the IT systems to those objectives

B These managers are in a position to allocate resources and or time to the projects

C Both of the above

D None of the above

75 The realistic possibility of affording, implementing, and using the IT systems being considered is referred to as:

76 The assessment of the realism of the possibility that technology exists to meet the need

identified in the proposed change to the IT system is called:

A Operational Feasibility

B Economic Feasibility

C Schedule Feasibility

D Technical Feasibility

77 The assessment of the realism of the possibility that the current employees will be able to

operate the proposed IT system is referred to as:

79 The assessment of the realistic possibility that the proposed IT system can be implemented within a reasonable amount of time is called:

D Determination of User Information Needs

81 The purpose of this step in the systems analysis phase is to determine whether the problem or deficiency in the current system really exists and to make a “go” or a “no-go” decision

A Survey of the Current System

B Determination of User Information Needs

C Business Process Reengineering

D Determination of User Information Needs

83 Watching the steps that employees take as they process transactions in the system is referred

84 The detailed examination of documentation that exists about the system to gain an

understanding of the system under study is called a(n):

86 This type of question is designed such that the format and range of the answer is known ahead

C Business Analysis and Design

D Business Process Design and Analysis

91 The many sets of activities within the organization performed to accomplish the functions

necessary to continue the daily operations are referred to as:

A The results of the systems survey

B User needs determination

C Detailed design

D Recommendations regarding the continuation of the project

93 This document is sent to each software vendor offering a software package that meets the user and system needs and is sent to solicit proposals

A Requested Software Package

B Request for Proposal

C System Software Request

D Software Vendor Needs

94 When a vendor returns a request for proposal, it will include all of the following, except:

A Match of the system and user needs

B Description of the software

C The technical support it intends to provide

D Prices for the software

95 After all of the RFPs have been received, either the IT governance committee or the project team will evaluate the proposals in order to select the best software package Things that must

be considered would include:

A The match of the system and the user needs to the features of the software

B Testimonials from other customers who use the software

C Reputation and reliability of the vendor

D All of the above

96 This phase of the systems design for in-house development of software involves the identifying the alternative approaches to systems that will meet the needs identified in the system analysis phase

A Request for proposal

100 In this feasibility, the project team must estimate the total amount of time necessary to

implement the each alternative design

A Operational feasibility

B Technical feasibility

C Economic feasibility

D Schedule feasibility

101 The purpose of this phase of systems design is to create the entire set of specifications

necessary to build and implement the system

D Inputs of the system

104 The forms, documents, screens, or electronic means used to put data into the accounting system are called:

A Outputs of the system

B Data storage

C Internal controls

D Inputs of the system

105 Which of the following is not a method of data input?

A Keying in data with a keyboard from data on a paper form

B Electronic data interchange

C Bar code scanning

D Viewed on the screen

106 There are many different types of documentation necessary to operate and maintain an

accounting system These types of documentation include all of the following, except:

107 A system conversion method in which the old and the new systems are operated simultaneously for a short time

A Direct cutover conversion

111 When the manager of the primary users of the system is satisfied with the system, an

acceptance agreement will be signed, the enforcement of which makes it much more likely that project teams will seek user input and that the project team will work hard to meet user needs

A System Conversion

B Post-Implementation Acceptance

C User Review

D User Acceptance

112 A review of the feasibility assessments and other estimates made during the projects, the

purpose of which is to help the organization learn from any mistakes that were made and help the company avoid those same errors in the future

A System Design Life Cycle

B Post-Implementation Review

C User Acceptance

D System Conversion Review