Chapter 5 Systems Development and Program Change Activities

TRUE/FALSE
1. The objective of systems planning is to link systems projects to the strategic
objectives of the firm.
ANS: T PTS: 1
2. The Systems Development Life Cycle (SDLC) concept applies to specific
applications and not to strategic systems planning.
ANS: F PTS: 1
3. An accountants responsibility in the SDLC is to ensure that the system applies
proper accounting conventions and rules and possesses adequate control.
ANS: T PTS: 1
4. In the conceptual design phase of the Systems Development Life Cycle (SDLC),
task force members are focused on selecting the new system design.
ANS: F PTS: 1
5. 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.
ANS: T PTS: 1
6. One-time costs include operating and maintenance costs.
ANS: F PTS: 1
7. 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.
ANS: F PTS: 1
8. A tangible benefit can be measured and expressed in financial terms.
ANS: T PTS: 1
9. Instead of implementing an application in a single big-bang release, modern
systems are delivered in parts continuously and quickly
ANS: T PTS: 1
10. 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.
ANS: T PTS: 1
11. All of the steps in the Systems Development Life Cycle apply to software that is
developed in-house and to commercial software.
ANS: F PTS: 1
12. Mixing technologies from many vendors improves technical feasibility.
ANS: F PTS: 1
13. The first step in the SDLC is to develop a systems strategy
ANS: T PTS: 1
14. System maintenance is often viewed as the first phase of a new development
cycle.
ANS: T PTS: 1
15. During the detailed feasibility study of the project, the systems professional who
proposed the project should be involved in performing the study.
ANS: F PTS: 1
16. Recurring costs include: hardware maintenance, software acquisition, software
maintenance, insurance, supplies, personnel costs.
ANS: F PTS: 1

17. 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.
ANS: T PTS: 1
18. Intangible benefits are not physical, but can be measured and expressed in
financial terms.
ANS: F PTS: 1
19. Legal feasibility identifies conflicts between the proposed system and the
companys ability to discharge its legal responsibilities
ANS: T PTS: 1
20. Programs in their compiled state are very susceptible to the threat of
unauthorized modification.
ANS: F PTS: 1
21. Maintenance access to systems increases the risk that logic will be corrupted
either by the accident or intent to defraud.
ANS: T PTS: 1
22. Source program library controls should prevent and detect unauthorized access
to application programs.
ANS: T PTS:
23. The user test and acceptance procedure is the last point at which the user can
determine the systems acceptability prior to it going into service.
ANS: T PTS: 1
24. The presence of a SPLMS effectively guarantees program integrity.
ANS: F PTS: 1
25. Firms with an independent internal audit staff may conduct tests of the system
development life cycle on an ongoing basis.
ANS: T PTS: 1
MULTIPLE CHOICES
1. Which control is not associated with new systems development activities?
a. reconciling program version numbers
2. 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
c. tests were conducted at the individual module and total system levels
prior to implementation
3. Routine maintenance activities require all of the following controls except
d. internal audit approval
4. Which statement is correct?
b. the source program library stores application programs in source code
form
5. Which control is not a part of the source program library management system?
c. combining access to the development and maintenance test libraries
6. Which control ensures that production files cannot be accessed without specific
permission?
c. Source Program Library Management System
7. Program testing
b. requires creation of meaningful test data
8. Which statement is not true?

a. An audit objective for systems maintenance is to detect unauthorized

access to application databases.
9. When the auditor reconciles the program version numbers, which audit objective
is being tested?
a. protect applications from unauthorized changes
10. Which is not a level of a data flow diagram?
a. conceptual level
11. Which statement is not correct? The structured design approach
c. assembles reusable modules rather than creating systems from scratch
12. 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
13. Which level of a data flow diagram is used to produce program code and
database tables?
b. elementary level
14. Evaluators of the detailed feasibility study should not include
d. the system designer
15. A cost-benefit analysis is a part of the detailed
d. economic feasibility study
16. Examples of one-time costs include all of the following except
b. insurance
17. Examples of recurring costs include
c. personnel costs
18. A commercial software system that is completely finished, tested, and ready for
implementation is called a
d. turnkey system
19. Which of the following is not an advantage of commercial software? Commercial
software
b. can be easily modified to the users exact specifications
20. Which step is least likely to occur when choosing a commercial software
package?
a. a detailed review of the source code
21. The output of the detailed design phase of the Systems Development Life Cycle
(SDLC) is a
c. detailed system design report
22. The detailed design report contains all of the following except
b. alternative conceptual designs
23. System documentation is designed for all of the following groups except
d. all of the above require systems documentation
24. Which type of documentation shows the detailed relationship of input files,
programs, and output files?
c. system flowchart
25. Typical contents of a run manual include all of the following except
b. logic flowchart
26. Computer operators should have access to all of the following types of
documentation except
b. a program code listing
27. Which task is not essential during a data conversion procedure?
a. decomposing the system

28. When converting to a new system, which cutover method is the most
conservative?
c. parallel operation cutover
29. Site preparation costs include all of the following except
c. supplies
30. The testing of individual program modules is a part of
d. programming costs
31. When implementing a new system, the costs associated with transferring data
from one storage medium to another is an example of
b. a data conversion cost
32. An example of a tangible benefit is
c. reduced inventories
33. An example of an intangible benefit is
c. more efficient operations
34. 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
35. Intangible benefits
c. are sometimes estimated using customer satisfaction surveys
36. Which technique is least likely to be used to quantify intangible benefits?
d. review of accounting transaction data
37. The formal product of the systems evaluation and selection phase of the
Systems Development Life Cycle is
b. the systems selection report
38. One-time costs include all of the following except
b. insurance
39. Typically a systems analysis
c. identifies user needs and specifies system requirements
40. A disadvantage of surveying the current system is
a. it constrains the generation of ideas about the new system
41. Systems analysis involves all of the following except
c. redesigning bottleneck activities
42. The systems analysis report does not
d. specify the system processing methods
43. After the systems analysis phase of the System Development Life Cycle (SDLC)
is complete, the company will have a formal systems analysis report on
c. users needs and requirements for the new system
44. The accountants role in systems analysis includes all of the following except
b. prepare data gathering questionnaires
45. The role of the steering committee includes
b. resolving conflicts that arise from a new system
46. Project planning includes all of the following except
c. selecting hardware vendors
47. Aspects of project feasibility include all of the following except
c. logistic feasibility
47. Which of the following is not a tool of systems analysts?
c. audit reports

49. When developing the conceptual design of a system,

d. inputs, processes, and outputs that distinguish one alternative from
another are identified
50. 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
51. Recurring costs include all of the following except
a. data conversion
52. Strategic systems planning is important because the plan
a. provides authorization control for the Systems Development Life Cycle
53. Project feasibility includes all of the following except
b. conceptual feasibility