Chapter 17—Acquiring and Implementing Accounting Information Systems

TRUE/FALSE

1. A rapidly developing segment of the outsourcing market is the application service provider which are
similar to service bureaus and provide services via Web browsers over public networks.

ANS: T

2. The purpose of AIS selection is to develop specifications for a new AIS.

ANS: F

3. The purpose of AIS implementation is to successfully switch from the old to the new AIS.

ANS: T

4. Some of the tasks of AIS operation are to conduct post implementation review and to perform systems
maintenance.

ANS: T

5. The accountant as an implementer can become involved with systems survey and needs analysis tasks.

ANS: F

6. As an analyst, the accountant could be involved in change management issues and/or technical aspects
of converting data, software, and hardware from the old to the new AIS.

ANS: F

7. The internal auditor may review acquisition projects to ensure that systems are acquired efficiently and
effectively, that the systems purchased have adequate internal controls, and will be auditable.

ANS: T

8. The external auditor may perform an independent review of the systems that produce financial
statements and their internal controls.

ANS: T

9. A problem has an economically feasible solution if it can be solved with existing software and
hardware technology.

ANS: F

10. Users, managers, and auditors are required to participate in the systems development project. These
people generally provide approvals, often called signoffs, at preestablished management control points.

ANS: T
11. Structured systems analysis is a set of procedures conducted to generate the specifications for a new
(or modified) information system or subsystem.

ANS: T

12. Specific reports and other documentation, called process documents, must be produced periodically
during systems development to make development personnel accountable for faithful execution of
systems development tasks

ANS: F

13. Within the characteristics of systems development methodology, deliverables signify approval of the
development process and the system being developed.

ANS: F

14. The logical specification, physical requirements, and budget and schedule are all part of the systems
analysis deliverable called an approved systems analysis document.

ANS: T

15. The organization’s management or IT steering committee approves the project for further systems
development.

ANS: T

16. The analysis team conducts a cost/effectiveness study which provides quantitative and certain
qualitative information concerning each of the system alternatives.

ANS: T

17. The cost/benefit study attempts to answer the question, "which alternative accomplishes the user's
goals for the least cost (or greatest benefit)?"

ANS: F

18. The cost/effectiveness study attempts to answer the question, "which alternative best accomplishes the
user's goals for the system being developed?"

ANS: T

19. A indirect cost is one that can be traced to the system or the system change in an economically feasible
way.

ANS: F

20. A tangible cost is one that can be reasonably quantified, such as software purchase and insurance.

ANS: T

21. An intangible cost is one that cannot be reasonably quantified, such as productivity losses caused by
low employee morale.

ANS: T
22. A direct cost is one that is directly attributable to the system or the system change, such as reduced
overhead costs.

ANS: F

23. Indirect benefits are not directly attributable to the system or the system change.

ANS: T

24. Tangible benefits are those that can be reasonably quantified, such as reduced equipment costs and
increased revenues.

ANS: T

25. Intangible benefits are those that cannot be reasonably quantified, such as those that result from having
improved information.

ANS: T

26. The logical specifications are a DFD and narrative outlining the major features, objectives, benefits,
and design constraints of the new system.

ANS: F

27. The logical specifications and physical requirements become the criteria by which the user will accept
the new or modified system.

ANS: T

28. Systems design is a set of procedures performed to choose the software specifications and hardware
resources for an information system.

ANS: F

29. As depicted in the text, the approved configuration plan is the final output of the software and
hardware study.

ANS: F

30. A service bureau is a firm that owns and manages computer equipment located on its property and uses
that equipment to provide data processing services to client organizations for a fee.

ANS: T

31. Outsourcing is a term that describes an organization's assigning any of its internal functions (e.g.,
accounting, legal, data processing) to an outside vendor.

ANS: T

ANS: T 39. ANS: F 41. The approved systems design document documents the system design and summarizes the implementation training and test plans. ANS: T 33. a training manual is included that provides instructions on how to use the new system. an organization will assess both a system's functional characteristics and its performance. ANS: T 34. To validate vendor proposals for supplying computer resources. and services.32. to obtain comparative throughput measures. Within the approved systems design document. software. ANS: T . Structured systems design is a set of procedures performed to convert the logical specifications into a design that can be implemented on the organization's computer system. Systems operation includes the post implementation review. An RFP is a document used to solicit from prospective vendors their plans for providing hardware. ANS: F 37. ANS: T 35. processed on each vendor's proposed system configuration. ANS: F 40. Within the approved systems design document. The design of conversions involves how the new or revised information system will talk with the existing system ANS: F 36. a user manual is included that describes the training program required for system users and personnel who will operate the system. The design of interfaces involves how to reformat data from the old system to the new system. ANS: T 38. A benchmark is a representative workload.

ANS: T 44. ANS: F 43. ANS: F 45. ANS: T 46. and begin to use the new/revised information system. The modular approach forces the users to learn the new system without the old system to fall back on. Enterprise systems are often implemented using the direct approach. The modular approach is also referred to as the phased approach. or help plan. The direct approach is also known as the big bang or cold turkey approach. and evaluate the system tests. In the parallel approach to systems implementation. ANS: T 51. ANS: T 50. install. ANS: T 48. Of the three approaches to systems implementation presented in the text.42. ANS: F 49. the parallel approach is the riskiest. the accountant could be the development team member who completes the systems design. ANS: T 47. As an internal auditor the accountant could be called in to complete the design. With the modular approach to systems implementation. As an analyst. help prepare the contracts. ANS: F . the new system either is implemented one subsystem at a time or is introduced into one organizational unit at a time. conduct. Systems maintenance is a set of procedures performed to complete the design contained in the approved systems design document and to test. both the new and old systems operate together for a period of time.

ANS: T 57. ANS: T 59. correcting errors in the programs. then the programmer codes the program. The user. and indicates the field (attribute) names and lengths. As a user.52. ANS: T 53. The project completion report usually includes a summary of requirements satisfied by the new system as well as system and program documentation. conducted soon after the system's implementation. The development team must layout the database which depicts a physical view of each database record. The post implementation review is an examination of a working system. and another member of the programming team do a walkthrough of the module specifications and the test plan to determine that the test plan is adequate. and adding enhancements to the programs is called systems development. or specify testing criteria. ANS: F 55. . ANS: T 56. the programmer. The user-directed test runs a subset of the system in the actual production environment. ANS: T 54. The removal of program errors is called debugging. ANS: F 60. The system test verifies the new system against the original specifications. An operations test of the complete system in a test environment is called an acceptance test. ANS: F 58. the accountant could become deeply involved in systems implementation helping to design system inputs and outputs. Making program changes. ANS: F 61.

ANS: T 63. Corrective maintenance is conducted to improve the performance of an application. ANS: F . Perfective maintenance is performed to fix errors. ANS: T 62. ANS: F 64. Systems maintenance is the modification of existing applications.

AIS analysis b. Adaptive maintenance adjusts applications to reflect changing business needs and environmental challenges. benchmarking ANS: B 3. operation . all of these functions can be outsourced ANS: D 4. outsourcing b. insourcing d. AIS operations ANS: B 5. accounting b. design c. The Sarbanes-Oxley Act prohibits CPA firms from serving as system consultants to companies they do not audit. implementation d. outsourcing b. application service provider c. AIS selection c. legal c. benchmarking ANS: A 2. AIS implementation d. ANS: F MULTIPLE CHOICE 1. insourcing d. 65. Which of the following is the assignment of selected business functions to a vendor? a. analysis b. Which of the following has the task of evaluating alternative AIS solutions? a. Which of the following provides services through an easy to use Web browser over public networks rather than private lines? a. data processing d. Which of the following functions can not be outsourced? a. Which development phase has the purpose of developing specifications for the new or revised system? a. application service provider c. ANS: T 66.

ANS: A .

user b. analyst c. Which of the accountant roles involves contributing to systems survey and needs analysis? a. In which role might the accountant types help meet the organization’s AIS needs by selecting the final system for purchase? a. analysis b. Which of the following involves the successful switch from the old to the new AIS? a. design c. programmer b. In which role might the accountant be the person who initiates the AIS acquisition cycle. internal auditor c. operation ANS: C 8. analyst c. 6. implementer ANS: B 9. purchaser d. operation ANS: D 7. accounting. implementer ANS: D 10. user b. and is in a prime position to recognize deficiencies and incompatibilities related to the existing AIS? a. purchaser d. implementer ANS: A 11. and technology? a. purchaser d. Which development phase has the task of post implementation review? a. consultant b. none of the above ANS: D . design c. analyst c. analysis b. Which role in the AIS Development/Acquisition process requires the accountant to be equally adept at dealing with people. external auditor d. implementation d. implementation d.

.

develop the system survey ANS: D 16. Determination of user requirements in the analysis step of systems development is more difficult in an e-business implementation because: a. Which of the following would be the likely trigger for the systems analysis step of systems development? a. the systems logical specifications c. an approved feasibility document d. users are more resistant to change to an e-business implementation c.12. systems survey d. systems implementation and operations c. the logical specifications for the selected system design alternative c. Outputs of the systems analysis phase of development typically would include all of the following except: a. e-business software is inherently more complex d. selected hardware and software b. users fear e-business implementations will negatively impact their jobs ANS: A 17. Which of the following is not a systems analysis goal? a. logical specification c. requests for proposal (RFPs) for software/hardware acquisition b. The system development phase that precedes the system design phase is: a. the systems physical requirements ANS: C . systems selection ANS: A 14. develop logical specifications for the select design d. project completion plan ANS: B 15. Which of the following is a deliverable from the analysis phase of systems development? a. systems analysis b. develop the budget for the next two system development phases c. a request for proposal (RFP) b. a budget for the systems design and systems implementation phases of development ANS: A 13. the physical requirements for the selected system design alternative d. develop the physical requirements for the selected design b. approved configuration d. user requirements inside and outside the organization must be determined b.

.

IV c. the analysis preferably should start with an analysis and documentation of: a. IV. IV. IV. A joint effort in creative aspects of the analysis can lead to a better analysis than if one person was left to his or her own devices. In structured systems analysis. b. I. study and document the current logical system b. Tasks can be completed in a longer time. the current physical system description b. control activities ANS: A . Study the current physical system. III. Design the future physical system. Define the future logical system. II. define user requirements for the new/modified system c. I d. ANS: B 19. III. the current logical DFD should be modified to reflect the components of the future system. II. III b. internal entities b. I. III. design alternative future physical systems d. The work requires a variety of skills one individual seldom possesses. II. Team members can exercise a quality control function over one another's work. II. I. IV ANS: B 22. The following is a jumbled list of the four steps in systems analysis that were presented in the text: I. Document the current logical system. Which of the following is the logically correct sequence of steps? a. the future logical system description d.18. the current logical system description c. The development team may propose logical design alternatives for the future logical system that may involve derivatives of the following except: a. III. determine the cost of the new/modified system ANS: B 21. c. data stores d. d. After defining the requirements for the new system. II. activities c. After the analysis team studies and documents the current physical system they should next: a. the future physical system description ANS: A 20. Which of the following is not a reason for using a team in systems analysis? a.

.

the cost/effectiveness study b. a. a. indirect cost c. indirect cost c. a. recurring cost ANS: A 25. direct benefits b. the effectiveness analysis d. direct cost b. variable ANS: A 28. the cost/benefits analysis c. indeterminate d.23. Which of the following benefits can be reasonably quantified? a. nonrecurring cost b. intangible c. Which of the following is a cost that cannot be reasonably quantified? a. indirect cost c. The cost of computer hardware to be purchased for a new system is an example of a(n) ____ cost for that system. Which of the following ranks each alternative on its relative capability to satisfy the user’s requirements (goals) for the system? a. intangible cost d. tangible cost . indirect benefits d. Productivity losses caused by reduced employee morale are an example of a(n) ____ cost. direct cost b. direct cost b. intangible benefits ANS: B 27. tangible b. nonrecurring cost ANS: B 26. the intangible benefits analysis ANS: C 24. tangible benefits c. intangible cost d. a. intangible cost d. recurring cost c. Personnel fringe benefits are an example of a(n) ____ cost. Insurance on a computer installation is an example of a(n) ____ cost. nonrecurring cost ANS: C 29.

The systems selection tasks include all of the following except: a. a. chosen software configuration and expected performance specifications b. indirect c. information requirements d. executive summary c. The physical requirements of a proposed system would include all of the following except: a. drafting the blueprints and other construction-related plans b. estimating the construction costs and preparing the forecasted construction schedule ANS: A 34. electrical and plumbing requirements. functional layouts for computer inquiry screens and reports b. determine what computer hardware will satisfy the physical requirements established in structured systems analysis c. direct b. intangible cost ANS: D 30. Reduced salaries and wages that will result from a systems change are an example of a(n) ____ benefit. Which of the following is specified in the approved configuration plan? a. executive summary b. determine appropriate acquisition ancillaries ANS: C 35. required room sizes. determine what computer software design will implement the logical specification developed in structured systems analysis b. d. the architect's determining each building's specific use. application description c. d. a. Structured systems design is to the systems development process what ____ is to the tasks required in constructing an industrial park. budget and schedule ANS: D 32. results of testing alternative software design and hardware resources . etc. determine miscellaneous environmental needs d. choosing the construction contractors c. amount of data to be stored ANS: B 33. processing response time requirements d. nonrecurring ANS: A 31. intangible d. The logical specification items might include all of the following except: a.

assessment of financing and outsourcing activities d. appropriate acquisition ancillaries ANS: D .c.

Which of the following triggers the systems selection process? a. management and staff are provided c. a service bureau is more expensive than using an in-house computer c. neither a nor b ANS: C 37. costs are mainly fixed b. logical specification b. costs are mainly fixed b. choose financing methods c. management and staff are provided c. to avoid time and expense of preparing RFP's and evaluating responses c. An organization might request bids for computer resources from only one vendor for all of the following reasons except: a. to reduce training cost by staying with its present vendor b. Which of the following issues is not a task of systems selection? a. to improve its bargaining position by maintaining a competitive selection posture d. physical requirements c. additional capacity may be available d. costs are mainly variable ANS: A 38. a service bureau can provide both hardware and software for a fee d. a service bureau provides information processing services b. can determine the level of control. prepare request for proposal ANS: D 40. a service bureau contract generally include company involvement with the system. Which of the following is a characteristic of external hardware sources? a. capacity is limited d. both a and c d. Which of the following statement regarding use of a service bureau is false? a. determine appropriate acquisition ancillaries d. determine software and hardware acquisition alternatives b.36. ANS: B . Which of the following is a characteristic of internal hardware sources? a. to minimize conversion cost by staying with its present vendor ANS: C 41. security and privacy ANS: B 39.

systems analysis test ANS: A 46. cost of typical configuration c. when a suitable software package is available for purchase. which vendors offer proposed systems that meet the organization's requirements d. determine to which vendors the RFPs will be sent b. The process of evaluating the vendor proposals include all of the following except: a. The number of sales that can be entered within a specified period of time is a measure of the computer system's: a. suggest resources ANS: A 44. benchmark b. to obtain comparative throughput measures is called a(n) a. benchmark results . Which of the following statements regarding software acquisition (purchase vs. validate vendor proposals c. which vendor should be selected ANS: C 45.42. which vendor proposal costs the least c. whereas the annual maintenance of purchased software is typically 50% of the purchase price d. time trial d. outsource production d. software developed in house can cost 10 times more than purchased software b. throughput b. consider other data and criteria d. documentation volume b. the annual maintenance of in-house software is typically 25% of its cost. A representative workload. it is better to buy it rather than try to reinvent it in-house c. maximum number of workstations d. The goal of validating vendor proposals is to determine: a. computing capacity c. performance ratio ANS: A 47. in-house development) is false? a. none of the statements are false ANS: C 43. A detailed vendor comparison would normally include all of the following except: a. which vendor has the equipment that is easiest to use b. RFP test c. processed on a vendor’s proposed system configuration.

systems implementation. maintainable design c. systems maintenance. systems design. to develop a plan and budget that will ensure an orderly and controlled implementation of the new system d. Typically. post-implementation review d. to develop a user manual which facilitates efficient and effective use of the new system ANS: A 49. Which of the following statements regarding SDLC methodology is false? a. the approved systems design document b. all of the following are goals of structured systems design except: a. c. Following this type of methodology should ensure that development efforts are efficient and consistently lead to information systems that meet organizational needs. Specific reports and other documentation. These guidelines are appropriate only when an organization is going to acquire an AIS. post-implementation review c. ____ and ____. ANS: A 48. called deliverables. To write computer programs and interfaces. systems implementation ANS: B 52. the approved systems analysis document c. post-implementation review d. Making repairs and modifications to the system is known as a. b. As presented in this text. ANS: B 50. A building inspection shortly after completing the construction of an industrial park is analogous to the ____ step in the systems development process. a. systems implementation. systems operation comprises two steps--namely. systems operation ANS: C 53. not when they plan to develop it in-house. programmers use: a. systems implementation . a. the approved feasibility document d. to convert the structured specification into a reliable. Systems analysis is the first phase of the SDLC. d. must be produced periodically during systems development. to recommend which computer hardware to use for the new system b. the approved configuration plan ANS: A 51. . systems maintenance c. systems maintenance b. systems implementation b.

systems operation ANS: B . systems maintenance c. post-implementation review d.b.

such as enterprise systems. systems maintenance c. The parallel system terminates the operation of the old system and then compares the outputs of the two systems c. Checking to see if the new system is doing what it is supposed to do is part of a. this is an example of the ____ approach to systems implementation. If a new payroll system is installed for the employees of plant 1 at time A. The direct approach is the riskiest of the three approaches. indirect ANS: C . and finally plant 3 at time C. Which of the following is not a goal of systems implementation? a. followed by plant 2 at time B. direct c. it is often best to take the parallel approach. c. test. Which of the following statements related to implementation approaches is false? a. b. parallel b. complete the preparation of user manuals d. determine. In very large implementations. Which of the following statements related to implementation approaches is true? a. The modular approach can only be combined with the direct approach. complete the design contained in the approved systems design document b. systems operation ANS: C 55. The direct approach is the riskiest of the three approaches ANS: D 58. a. The parallel approach provides a high level of control. ANS: B 57. d. systems implementation b. that the system satisfies the programmer’s requirements ANS: D 56. post-implementation review d. The parallel system significantly decreases employee's work load during the conversion period. d. The modular approach can be combined with either of the other two approaches. modular d. by thoroughly testing the system with programmers. and document the programs and procedures required by the approved systems design document c. b.54. write.

The following picture from the text illustrates the ____ approach to systems implementation: a. parallel b.59. direct c. direct c. modular d. Indirect ANS: A 60. indirect ANS: B . parallel b. modular d. The following picture from the text illustrates the ____ approach to systems implementation: a.

ANS: C 63. the user manual(s) ANS: B 65. The project completion report will include all of the following except: a.61. The final step in the in the implementation process is to write: a. It is also referred to as the phased approach. Which of the following is not a potential role for the accountant in a system’s implementation? a. direct c. Which of the following statements regarding the modular approach is false? a. It can combine the safety and control of a parallel implementation with cost/time savings of the direct approach. It can be combined with the parallel or the direct approach. The following picture from the text illustrates the ____ approach to systems implementation: a. estimated and actual duration of each development stage d. modular d. b. the project completion report c. It is always a faster approach than parallel. indirect ANS: C 62. analyst d. the post-implementation review report d. system documentation . consultant ANS: B 64. parallel b. programmer c. d. summary of requirements satisfied by the new system b. the approved configuration plan b. request for proposals c. c. user b.

Systems implementation is triggered by: a. cost/benefit study. A user-directed test of the complete system in a test environment is called a(n) ____ test. integration test c. documents. the design of the input and output reports. A formal procedure for submitting change requests should be adopted. unit b. the approved system design document c. a. High-quality documentation must be created and maintained. system maintenance c. systems test d. and approvals for each development step. the contract negotiation ANS: D 69. site preparation ANS: B 67. acceptance ANS: D 70. computer screens b. b. Which of the following statements regarding systems maintenance is false? a. It should include analysis. neither a or b ANS: C 68. d. a. integration c. When completing the design of the system we need to complete all of the following except: a. c. design. computer resource acquisition b. laying out the database c. Which of the following is not a significant activity during the systems implementation phase? a. the approved configuration plan b. The ____ runs a subset of the system in the actual production environment. . both a and b d. To ensure that all necessary maintenance requests are submitted. implementation. unit test b. users should never be charged for maintenance costs. operations test ANS: D 71. stub d. software and hardware installation d. ANS: B 66. the specifications for the manual and automated processes d.

ANS: B .

perfective c. adaptive d. corrective ANS: B 75. preventive b. perfective c. ANS: Outsourcing . preventive b. a systems survey d. systems maintenance c. ensure a correct conversion by planning. determine if the user is satisfied with the new system c. review the performance of the new system d. troubleshooting ANS: A 73. 72. All of the following would be tasks of post-implementation review except: a. The type of maintenance that is conducted to fix errors of an application is referred to as: a. corrective ANS: D 76. Which of the following is conducted as a follow up to a system’s recent implementation? a. ____________________ is the assignment of an internal function to an outside vendor. The type of maintenance that is conducted to improve the performance of an application is referred to as: a. adaptive d. a post-implementation review b. evaluate the quality of the new system’s documentation ANS: A 74. and conducting an orderly installation of the new system b. controlling. perfective c. corrective ANS: C COMPLETION 1. preventive b. The type of maintenance that is conducted to adjust applications for changing business needs of an application is referred to as: a. adaptive d.

ANS: consultant 8. ANS: application service provider (ASP) 3. ANS: External auditors . ANS: analysis 4. ANS: implementation 6. 2. and provides access to application software and hardware over the Internet to multiple customers. The purpose of the Information System Development ____________________ phase is to develop specifications for a new or revised system. ANS: system selection 5. ANS: implementer 9. The outcome of the _________________ process will support either the purchase or development of an AIS. ______________________________ review the acquisition cycle and assess if and how internal controls have been impacted. intricate knowledge of accounting and information technology helps the accountant be successful in the role of _______________________. In particular. manages. ANS: internal auditors 10. One task of the _________________________ phase is to convert to the new or revised system. A(n)_________________________________ offers a traditional outsourcing mechanism whereby it hosts. As agents of management and the board of directors. ANS: operation 7. the accountant can become involved with any or all of the AIS acquisition phases. ____________________ ensure that the acquisition team has followed the organization’s standard procedures for systems acquisition and that the process has been efficient and effective. Tasks of the _________________________ phase are to conduct post implementation review and to perform systems maintenance. As a(n)_________________.

ANS: Structured systems analysis 14. If the payback and internal rate of return estimates are sufficient to allow the development project to proceed it is said to have ____________________ feasibility. The ____________________ analysis or study is performed first because the data are relatively easy to obtain and are more objective than the data on effectiveness. ANS: approved systems analysis document 15. ANS: technically 12. A problem has a(n) ____________________ feasible solution if it can be solved with existing technology. ___________________________________ reflects a set of procedures conducted to generate the specifications for a new (or modified) information system or subsystem. ANS: Indirect . ____________________ costs are associate with but not directly attributable to the system or the system change. ANS: cost/benefit 18. The logical specification. ANS: direct 19. A(n) ____________________ cost is one that is directly attributable to the system or the system change. The organization’s management or IT _________________________ approves the project for further systems development. ANS: cost/effectiveness study 17.11. physical requirements. ANS: steering committee 16. The systems analysis team conducts a(n) _________________________ which provides quantitative and certain qualitative information concerning each of the system alternatives. ANS: economic 13. budget and schedule are all part of the systems analysis deliverable called a(n) ___________________________________.

ANS: intangible 22. such as software purchase and insurance. such as productivity losses caused by low employee morale. _________________________ are incurred only once to get the system operational.20. A(n) ____________________ cost is one that can be reasonably quantified. ANS: Nonrecurring costs . ANS: tangible 21. A(n) ____________________ cost is one that cannot be reasonably quantified.

23. A(n) ____________________ benefit is one that is directly attributable to the system or the system change. including hardware and software for a fee ANS: service bureau 30. such as reduced personnel costs. A(n) ______________________________ is a document used to solicit from prospective vendors their plans for providing hardware. ANS: throughput 32. ANS: logical specification 28. ANS: Intangible 27. ____________________ benefits are not directly attributable to the system or the system change. and services. processed on each vendor's proposed system configuration. and processing response times are part of developing the __________________ for the selected design. Defining requirements such as the amount of data to be stored. ____________________ benefits are those that cannot be reasonably quantified. such as reduced equipment costs and increased revenues. ANS: request for proposal (RFP) 31. Structured system design is a set of procedures performed to convert the _____________________ into a design that can be implemented on the organization’s computer system. software. ANS: direct 24. . A computer system's ____________________ is the quantity of work performed in a period of time. to obtain comparative throughput measures. functional layouts for computer inquiry screens and reports. ANS: physical requirements 29. such as those that result from having improved information. ____________________ benefits are those that can be reasonably quantified. ANS: Indirect 25. ANS: Tangible 26. A(n) ____________________ is a representative user workload. A(n) _________________________ is a firm providing information processing services.

and begin to use the new or revised information system. ANS: approved systems design document 35. it is often capacity or cost prohibitive to take the parallel approach. Of the three approaches to systems implementation presented in the text. Interviews that are conducted with personnel outside the organization are called ______________________________. ANS: parallel 38. ANS: benchmark 33. When implementing ___________________ systems. training. ___________________________________ reflects a set of procedures performed to complete the design contained in the approved systems design document and to test. ANS: enterprise 41. ANS: Systems implementation 37. The direct approach is also known as the _________________________ or _________________________ approach. Systems operation includes systems maintenance and __________________________________. With the ____________________ approach to systems implementation. the ____________________ approach is the riskiest. ANS: . ANS: external interviews 34. both the new and old systems operate together for a period of time. In the ____________________ approach to systems implementation. and test plans. ANS: modular 40. ANS: post-implementation review 36. install. ANS: direct 39. The ________________________________________ documents the system design and summarizes the implementation. the new system either is implemented one subsystem at a time or is introduced into one organizational unit at a time.

The two main inputs that trigger systems implementation are the ___________________________________ and the ______________________________________. The removal of program errors is called ____________________. ANS: modular 44. cold turkey OR cold turkey. ANS: direct 43. ANS: debugging 49. then the programmer codes the program. big bang. ANS: project completion report 46. approved systems design document 47. Making program changes. the accountant could be the person who initiates the AIS acquisition cycle because (s)he will be in a prime position to recognize deficiencies and incompatibilities related to the existing AIS. ANS: user 45. The ____________________ approach is also referred to as the phased approach. ANS: maintenance . and another member of the programming team do a(n) _______________ of the module specifications and the test plan to determine that the test plan is adequate. correcting errors in the programs. ANS: walkthrough 48. The ______________________________ summarizes the implementation activities and provides documentation for operating the new system and for conducting the post-implementation review and systems maintenance. ANS: approved configuration plan. and adding enhancements to the programs is called ____________________. big bang 42. The user. The ____________________ approach forces the users to learn the new system without the old system to fall back on. the programmer. As a(n) ____________________.

ANS: Operations OR environmental 53. ANS: Adaptive ESSAY 1. ____________________ maintenance is conducted to improve the performance of an application. Briefly discuss application service providers (ASP) and Software as a Service (SaaS). . The _________________________ verifies the new system against the original specifications. ______________________________ is the modification of existing applications. ANS: post-implementation review 54. ANS: acceptance 52. ANS: user manual 50. The ____________________ test runs a subset of the system in the actual production environment. ____________________ maintenance is performed to fix errors. ANS: Systems maintenance 55. The _________________________ should describe operating procedures for both manual and automated systems functions. ANS: Corrective 56. ANS: Perfective 57. conducted soon after the system's implementation. ANS: system test 51. A user-directed test of the complete system in a test environment is called a(n) ____________________ test. ____________________ maintenance adjusts applications to reflect changing business needs and environmental challenges. The ___________________________________ is an examination of a working system. 49.

. e-mail (Gmail). The fee is really a rental based on usage. or customer billing data). whereas SaaS applications may be hosted by third parties unrelated to the software provider or developer. general ledger. The user does not need the technical resources to install or support the application. net-based document creation and management (Docs). Some ASPs provide service for free. SaaS is in its infancy. ASPs are generally traditional applications with Web-interfaces. both from Intuit. With an ASP. Discuss four ways that an accountant is often involved with the AIS acquisition? ANS: Students should discuss four of the following items: User Analyst Purchaser Implementer Consultant Internal auditor External auditor User: Whether as a staff accountant. One of the more widely adopted examples of SaaS is Google Apps. SaaS provides similar results to an ASP. the accountant very well could be the person who initiates the AIS acquisition cycle because (s)he will be in prime position to recognize deficiencies and incompatibilities related to the existing AIS. Because ASPs are accessed over the Internet. a user needs only a Web browser and a basic PC or other method of accessing the Internet (such as a browser-enabled mobile phone) to obtain the ASP service. an accountant will be using an AIS on a regular basis. with some underlying differences. Software as a Service (SaaS) is a Web-based model of software distribution where multiple users may simultaneously use the software. and provides access to application software and hardware over the Internet to multiple customers. Inc.a Google Apps’ offerings include on-demand. which means that (s)he will be responsible for (or own) certain data sets (such as payroll. ANS: An application service provider (ASP) offers a traditional outsourcing mechanism whereby it hosts. (s)he might be a business process owner as well. When using an ASP. whereas SaaSs are typically created for the Web environment. 2. In any of these roles. a user obtains constantly updated software. ASPs are a good choice for applications where the user does not want to purchase and maintain the application or simply wants access from any Internet access point. obtaining revenue from advertising and the sale of other services. the hosting site may have application knowledge as well as hardware configured to optimize the software. manages. ASPs relieve the organization of the burden of developing or buying and installing software and hardware. or CFO. . QuickBooks Online Edition and TurboTax. controller. are two consumer products that traditionally have been sold as “purchase and install” but are now available as an ASP service. As such. and sharing capabilities (Sites). but many vendors are exploring the technology.

As consultant 3. intricate knowledge of accounting and information technology will help the accountant be successful in this role. As a consultant. Also. Consultant: Although the Sarbanes-Oxley Act prohibits CPA firms who audit a public company to also serve as systems consultants for the same company. During the assessment. the accountant will conduct an internal control assessment. accounting. as agents of management and the board of directors. Implementer: After the AIS is purchased. external auditors will review the acquisition cycle and assess if and how internal controls have been impacted. In this capacity. The accountant could become involved with this delicate and vitally important hase of the acquisition cycle. As a user 4. Discuss the accountant’s involvement in systems selection including: 1. they often serve as advisors or consultants during the acquisition cycle. CPA firms still consult (they often call themselves “business advisors”). Purchaser: The accountant could also become a member of the AIS selection team. Analyst: Because the accountant is intimately familiar with functionality and controllability aspects of accounting systems. (s)he can contribute skills in acquiring and documenting descriptions of processes. (s)he will have to match the organization’s requirements with the capability of various commercially available accounting systems. If so. External auditor: As an external auditor. just not for their audit clients. 3. Also. these new consulting companies continue to need accountants. (s)he will have to determine how changes in the AIS might have affected overall audit risk. (s)he will have to be equally adept at dealing with people. which is much easier said than done.” Thus. and help to make the final purchase selection. Internal auditor: Because internal auditors are knowledgeable about AIS function and control requirements. In particular. an accountant can become involved with any or all of the AIS acquisition phases. it is time to switch the old with the new. evaluate a set of potential AIS solutions. As an internal auditor ANS: . Even though all but one major CPA firm (Deloitte Touche Tohmatsu) has spun-off their consulting divisions into separate entities. As an analyst 2. entitled “The Effect of Information Technology on the Auditor’s Consideration of Internal Control in a Financial Statement Audit. and technology. Even when the accountant is not familiar with a particular business process. Professional guidance in this regard is found in the Statement on Auditing Standards (SAS) 94. AIS consulting is nevertheless alive and well. (s)he could be asked to participate on a systems analysis team to conduct a preliminary survey used to determine what is needed in a new AIS. internal auditors ensure that the acquisition team has followed the organization’s standard procedures for systems acquisition and that the process has been efficient and effective.

The accountant as an internal auditor could be a member of the evaluation team regarding auditability and controllability of the system. the accountant could be responsible for reviewing and reporting on the efficiency and effectiveness of the system.An accountant might become involved in systems selection in a number of ways. . the accountant might be called on to provide such expertise. as an internal auditor. The accountant might also be called upon to comment on the adequacy of the proposed resource choices. the accountant could be the evaluation team member with the most expertise in internal control and possess expertise in computer applications for the AIS. As a consultant. the accountant could provide guidance on the tax and financial implications of alternative financing methods. The accountant has a great deal of knowledge in making software and hardware selections for the AIS. As an analyst. Also. as well as objectivity. As a user of the system.

2 by constructing an example from the GSU scenario to explain (in one paragraph for each) how each approach might be applied at GSU.2 is the start of the 20X8 fall semester.2 is reproduced from Chapter 17 and shows three possible system implementation approaches. Required: Demonstrate your understanding of the three approaches in TB Figure 17.PROBLEMS 1. Make and state any other assumptions you feel are necessary. The partial organization chart for GSU appears in TB Figure 17. Be specific as to which of GSU's organizational units would convert to OGRS and when. TB Figure TB 17.1. . Growing State University (GSU) is planning to change from its batch-oriented grade reporting system (BGRS) to a new. online grade reporting system (OGRS). Assume that time X in TB Figure 17.

Sections 002 through 005 continue to use BGRS as before. Also in spring 20X9. Therefore. if satisfactory. BGRS is abandoned and OGRS is adopted for section 001. sections 001 through 005 of AIS. without any pilot project to compare the old and new systems in parallel operation. section 001 of AIS only reports grades on both the old (BGRS) and new (OGRS) systems. effective with the spring 20X9 semester. The following solution assumes that GSU wants to isolate any conversion problems that might arise by confining them to the smallest population possible. Similar pilot projects could then be extended to higher levels in the organization in spring 20X9. several alternative solutions are possible and acceptable.ANS: INSTRUCTOR NOTE: Obviously. if satisfactory. . The output results for section 001 under both the old and new systems are compared and. effective with the spring 20X9 semester. 20X8. all AIS sections report grades on both the old (BGRS) and new (OGRS) systems. BGRS is abandoned and OGRS is adopted for all AIS sections. If the results for 002 are also satisfactory. it switches to OGRS in summer 20X9 and so on. Modular Approach: For the fall semester. Direct Approach: All sections of AIS abandon BGRS and adopt OGRS for fall 20X8. Parallel Approach: For the fall semester. GSU decides to start the conversion at the lowest level in the organization chart--namely. section 002 (perhaps all other AIS sections) runs BGRS and OGRS in parallel. The output results are compared and. 20X8.

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3 is taken from the text figure showing the systems selection task and documents.2. The data flows for available hardware and physical requirements are listed twice because these data flows will each appear twice in the Level 1 DFD.0 Systems Selection into a Level 1 DFD. Process bubbles . The DFD should include the items listed below. Required: Explode bubble 3. TB Figure 17.

2 Evaluate vendor proposals 3.4 Complete configuration plan External entities External sources Hardware/ software vendors Data flows Approved configuration plan Available hardware Available hardware Logical specification Physical requirements Physical requirements Request for proposal Software specifications Suggested hardware resources Vendor proposals ANS: .1 Prepare requests for proposal 3.3.3 Assess software plan 3.

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5 is the DFD of the systems development life cycle as presented in the text. Required Explode bubble 4.0 Structured Systems Design into a Level 1 DFD. Figure TB 17. All of the process bubbles and data flows are presented below. .3. The data flows for implementation plan and budget and logical specification are listed twice because these data flows will appear twice in the Level 1 DFD.

2 Develop implementation plan and budget 4.1 Specify modules 4.3 Develop implementation test plan 4.6 Complete systems design document Data Flows Approved configuration plan Approved systems design document Design specifications Implementation plan and budget Implementation test plan Implementation plan and budget Logical specification Logical specification Training plan User manual ANS: .Process Bubbles 4.5 Develop training program 4.4 Develop user manual 4.

TB Figure 17.6 .