Deck 5: Systems Development and Program Change Activities

Question 1

Intangible benefits are not physical, but can be measured and expressed in financial terms.

Answer 1

False

Question 2

Programs in their compiled state are very susceptible to the threat of unauthorized modification.

Answer 2

False

Question 3

Recurring costs include: hardware maintenance, software acquisition, software maintenance, insurance, supplies and personnel costs.

Answer 3

False

Question 4

All of the steps in the Systems Development Life Cycle apply to software that is developed in-house and to commercial software.

Question 5

A tangible benefit can be measured and expressed in financial terms.

Question 6

Instead of implementing an application in a single big-bang release, modern systems are delivered in parts continuously and quickly

Question 7

Legal feasibility identifies conflicts between the proposed system and the company's ability to discharge its legal responsibilities

Question 8

When determining the operational feasibility of a new system, the expected ease of transition from the old system to the new system should be considered.

Question 9

Maintenance access to systems increases the risk that logic will be corrupted either by the accident or intent to defraud.

Question 10

When preparing a cost-benefit analysis, design costs incurred in the systems planning, systems analysis and conceptual design phases of the Systems Development Life Cycle are relevant costs.

Question 11

Source program library controls should prevent and detect unauthorized access to application programs.

Question 12

An accountant's responsibility in the SDLC is to ensure that the system applies proper accounting conventions and rules and possesses adequate control.

Question 13

The objective of systems planning is to link systems projects to the strategic objectives of the firm.

Question 14

One-time costs include operating and maintenance costs.

Question 15

During the detailed feasibility study of the project, the systems professional who proposed the project should be involved in performing the study.

Question 16

When the nature of the project and the needs of the user permit, most organizations will seek a pre-coded commercial software package rather than develop a system in-house.

Question 17

In the conceptual design phase of the Systems Development Life Cycle (SDLC), task force members are focused on selecting the new system design.

Question 18

The payback method is often more useful than the net present value method for evaluating systems projects because the effective lives of information system tend to be short and shorter payback projects are often desirable.

Question 19

The Systems Development Life Cycle (SDLC) concept applies to specific applications and not to strategic systems planning.

Question 20

The user test and acceptance procedure is the last point at which the user can determine the system's acceptability prior to it going into service.

Question 21

A cost-benefit analysis is a part of the detailed

A) operational feasibility study
B) schedule feasibility study
C) legal feasibility study
D) economic feasibility study

Question 22

The output of the detailed design phase of the Systems Development Life Cycle (SDLC) is a

A) fully documented system report
B) systems selection report
C) detailed system design report
D) systems analysis report

Question 23

Evaluators of the detailed feasibility study should not include

A) the internal auditor
B) the project manager
C) a user representative
D) the system designer

Question 24

Which control ensures that production files cannot be accessed without specific permission?

A) Database Management System
B) Recovery Operations Function
C) Source Program Library Management System
D) Computer Services Function

Question 25

Which statement is correct?

A) compiled programs are very susceptible to unauthorized modification
B) the source program library stores application programs in source code form
C) modifications are made to programs in machine code language
D) the source program library management system increases operating efficiency

Question 26

Which step is least likely to occur when choosing a commercial software package?

A) a detailed review of the source code
B) contact with user groups
C) preparation of a request for proposal
D) comparison of the results of a benchmark problem

Question 27

The benefits of the object-oriented approach to systems design include all of the following except

A) this approach does not require input from accountants and auditors
B) development time is reduced
C) a standard module once tested does not have to be retested until changes are made
D) system maintenance activities are simplified

Question 28

Which is not a level of a data flow diagram?

A) conceptual level
B) context level
C) intermediate level
D) elementary level

Question 29

Examples of one-time costs include all of the following except

A) hardware acquisition
B) insurance
C) site preparation
D) programming

Question 30

A commercial software system that is completely finished, tested, and ready for implementation is called a

A) backbone system
B) vendor-supported system
C) benchmark system
D) turnkey system

Question 31

Which test of controls will provide evidence that the system as originally implemented was free from material errors and free from fraud? Review of the documentation indicates that

A) a cost-benefit analysis was conducted
B) the detailed design was an appropriate solution to the user's problem
C) tests were conducted at the individual module and total system levels prior to implementation
D) problems detected during the conversion period were corrected in the maintenance phase

Question 32

Which control is not associated with new systems development activities?

A) reconciling program version numbers
B) program testing
C) user involvement
D) internal audit participation

Question 33

Examples of recurring costs include

A) software acquisition
B) data conversion
C) personnel costs
D) systems design

Question 34

Which of the following is not an advantage of commercial software? Commercial software

A) can be installed faster than a custom system
B) can be easily modified to the user's exact specifications
C) is significantly less expensive than a system developed in-house
D) is less likely to have errors than an equivalent system developed in-house

Question 35

Which statement is not correct? The structured design approach

A) is a top-down approach
B) is documented by data flow diagrams and structure diagrams
C) assembles reusable modules rather than creating systems from scratch
D) starts with an abstract description of the system and redefines it to produce a more detailed description of the system

Question 36

Program testing

A) involves individual modules only, not the full system
B) requires creation of meaningful test data
C) need not be repeated once the system is implemented
D) is primarily concerned with usability

Question 37

When the auditor reconciles the program version numbers, which audit objective is being tested?

A) protect applications from unauthorized changes
B) ensure applications are free from error
C) protect production libraries from unauthorized access
D) ensure incompatible functions have been identified and segregated

Question 38

Routine maintenance activities require all of the following controls except

A) documentation updates
B) testing
C) formal authorization
D) internal audit approval

Question 39

The detailed design report contains all of the following except

A) input screen formats
B) alternative conceptual designs
C) report layouts
D) process logic

Question 40

Which statement is not true?

A) An audit objective for systems maintenance is to detect unauthorized access to application databases.
B) An audit objective for systems maintenance is to ensure that applications are free from errors.
C) An audit objective for systems maintenance is to verify that user requests for maintenance reconcile to program version numbers.
D) An audit objective for systems maintenance is to ensure that the production libraries are protected from unauthorized access.

Question 41

Which task is not essential during a data conversion procedure?

A) decomposing the system
B) validating the database
C) reconciliation of new and old databases
D) backing up the original files

Question 42

Typical contents of a run manual include all of the following except

A) run schedule
B) logic flowchart
C) file requirements
D) explanation of error messages

Question 43

When converting to a new system, which cutover method is the most conservative?

A) cold turkey cutover
B) phased cutover
C) parallel operation cutover
D) data coupling cutover

Question 44

An example of a tangible benefit is

A) increased customer satisfaction
B) more current information
C) reduced inventories
D) faster response to competitor actions

Question 45

The testing of individual program modules is a part of

A) software acquisition costs
B) systems design costs
C) data conversion costs
D) programming costs

Question 46

Typically a systems analysis

A) results in a formal project schedule
B) does not include a review of the current system
C) identifies user needs and specifies system requirements
D) is performed by the internal auditor

Question 47

System documentation is designed for all of the following groups except

A) systems designers and programmers
B) end users
C) accountants
D) all of the above require systems documentation

Question 48

A tangible benefit

A) can be measured and expressed in financial terms
B) might increase revenues
C) might decrease costs
D) all of the above

Question 49

Intangible benefits

A) are easily measured
B) are of relatively little importance in making information system decisions
C) are sometimes estimated using customer satisfaction surveys
D) when measured, do not lend themselves to manipulation

Question 50

Site preparation costs include all of the following except

A) crane used to install equipment
B) freight charges
C) supplies
D) reinforcement of the building floor

Question 51

The systems analysis report does not

A) identify user needs
B) specify requirements for the new system
C) formally state the goals and objectives of the system
D) specify the system processing methods

Question 52

Computer operators should have access to all of the following types of documentation except

A) a list of users who receive output
B) a program code listing
C) a list of all master files used in the system
D) a list of required hardware devices

Question 53

Which type of documentation shows the detailed relationship of input files, programs, and output files?

A) structure diagrams
B) overview diagram
C) system flowchart
D) program flowchart

Question 54

Which technique is least likely to be used to quantify intangible benefits?

A) opinion surveys
B) simulation models
C) professional judgment
D) review of accounting transaction data

Question 55

Systems analysis involves all of the following except

A) gathering facts
B) surveying the current system
C) redesigning bottleneck activities
D) reviewing key documents

Question 56

When implementing a new system, the costs associated with transferring data from one storage medium to another is an example of

A) a recurring cost
B) a data conversion cost
C) a systems design cost
D) a programming cost

Question 57

A disadvantage of surveying the current system is

A) it constrains the generation of ideas about the new system
B) it highlights elements of the current system that are worth preserving
C) it pinpoints the causes of the current problems
D) all of the above are advantages of surveying the current system

Question 58

The role of the steering committee includes

A) designing the system outputs
B) resolving conflicts that arise from a new system
C) selecting the programming techniques to be used
D) approving the accounting procedures to be implemented

Question 59

An example of an intangible benefit is

A) expansion into other markets
B) reduction in supplies and overhead
C) more efficient operations
D) reduced equipment maintenance

Question 60

The formal product of the systems evaluation and selection phase of the Systems Development Life Cycle is

A) the report of systems analysis
B) the systems selection report
C) the detailed system design
D) the systems plan

Question 61

Which of the following is not a tool of systems analysts?

A) observation
B) task participation
C) audit reports
D) personal interviews

Question 62

Describe a test of controls that would provide evidence that only authorized program maintenance is occurring.

Question 63

When developing the conceptual design of a system,

A) all similarities and differences between competing systems are highlighted
B) structure diagrams are commonly used
C) the format for input screens and source documents is decided
D) inputs, processes, and outputs that distinguish one alternative from another are identified

Question 64

List three advantages and one disadvantage of commercial software.

Question 65

What is a systems selection report?

Question 66

List three methods used to control the source program library.

Question 67

____________________ benefits can be measured and expressed in financial terms, while ____________________ benefits cannot be easily measured and/or quantified.

Question 68

New system development activity controls must focus on the authorization, development, and implementation of new systems and its maintenance. Discuss at least five control activities that are found in an effective system development life cycle.

Question 69

Why is it important that the systems professionals who design a project not perform the detailed feasibility study of the project?

Question 70

Explain why accountants are interested in the legal feasibility of a new systems project.

Question 71

What are program version numbers and how are the used?

Question 72

The role of the accountant/internal auditor in the conceptual design phase of the Systems Development Life Cycle includes all of the following except

A) the accountant is responsible for designing the physical system
B) the accountant is responsible to ensure that audit trails are preserved
C) the internal auditor is responsible to confirm that embedded audit modules are included in the conceptual design
D) the accountant is responsible to make sure that the accounting conventions that apply to the module are considered by the system designers

Question 73

Strategic systems planning is important because the plan

A) provides authorization control for the Systems Development Life Cycle
B) will eliminate any crisis component in systems development
C) provides a static goal to be attained within a five-year period
D) all of the above

Question 74

Project feasibility includes all of the following except

A) technical feasibility
B) conceptual feasibility
C) operational feasibility
D) schedule feasibility

Question 75

Why is the payback method often more useful than the net present value method for evaluating systems projects?

Question 76

What are the auditor's objectives relating to systems development?

Question 77

Aspects of project feasibility include all of the following except

A) technical feasibility
B) economic feasibility
C) logistic feasibility
D) schedule feasibility

Question 78

Project planning includes all of the following except

A) specifying system objectives
B) preparing a formal project proposal
C) selecting hardware vendors
D) producing a project schedule

Question 79

Describe a risk associated with the phased cutover procedure for data conversion.

Question 80

Contrast the source program library (SPL) management system to the database management system (DBMS).