Information Systems Roles and Strategies

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Questions and Answers

What is one of the advantages of strategic systems planning?

It always guarantees project approval.

It reduces project costs significantly.

It eliminates the need for crisis management.

It provides authorization control for the SDLC. (correct)

Which technique is NOT used for gathering facts during the survey step?

Data Mining (correct)

Personal Interviews

Observation

Task Participation

What is a potential disadvantage of surveying the current system?

Gaining comprehensive user feedback.

Improving new system approaches.

Thinking inside the box. (correct)

Identifying root problems effectively.

Which statement reflects a key feature of strategic planning in systems development?

It helps reduce the crisis component. Signup and view all the answers

Why is an accountant considered a stakeholder in the proposed system analysis?

They can provide financial projections. Signup and view all the answers

Which role is NOT considered a systems professional in the context provided?

Operations personnel Signup and view all the answers

What is one of the objectives of systems planning?

To link projects to the strategic objectives of the firm Signup and view all the answers

Which of the following is NOT a characteristic of low-cost commercial systems?

Complex customization Signup and view all the answers

Who among the following is considered a stakeholder in the system development process?

External auditors Signup and view all the answers

One disadvantage of commercial software is:

Dependence on vendor support Signup and view all the answers

What do accountants and internal auditors primarily help ensure in relation to system design?

Control and auditability Signup and view all the answers

Which aspect of the software development life cycle (SDLC) primarily influences the quality of Accounting Information Systems (AIS)?

SDLC activities producing the systems Signup and view all the answers

Which statement best describes a primary trend in commercial system development?

Emergence of a thriving software industry Signup and view all the answers

What is the main focus of the Structured Design Approach?

To start with the big picture and decompose into smaller parts Signup and view all the answers

Which of the following is a type of feasibility study?

Technical Feasibility Signup and view all the answers

What is an essential benefit of the Object Oriented Approach?

Improved user support and flexibility Signup and view all the answers

During the testing phase, who should participate in testing program modules?

Users, internal audit staff, and systems professionals Signup and view all the answers

Which of the following is NOT part of the cost-benefit analysis?

Conducting operational feasibility Signup and view all the answers

Which type of feasibility focuses on the availability of funds?

Economic Feasibility Signup and view all the answers

Which of the following is an example of a tangible benefit?

Lower operational costs Signup and view all the answers

What is the role of internal auditors in system development?

To participate as stakeholders in the development process Signup and view all the answers

What is the purpose of retaining test data during the software testing process?

To provide a frame of reference for auditors Signup and view all the answers

What is one of the main advantages of following a modular approach in programming the system?

Increases programming efficiency Signup and view all the answers

Which of the following is considered the riskiest method of converting to a new system?

Cold turkey cutover Signup and view all the answers

What should the auditor verify during the system implementation?

Adequacy of control and compliance with regulations Signup and view all the answers

What is included in the system documentation review?

Outputs, reports, and operational documents Signup and view all the answers

Which programming languages are categorized as procedural languages?

COBOL, Fortran, and C Signup and view all the answers

What is a significant cost associated with system maintenance after development?

Changing user needs and requirements Signup and view all the answers

What does the term 'processing logic' refer to in system documentation?

Flow charts and algorithms Signup and view all the answers

What percentage of the entire cost of a system can maintenance account for?

80-90% Signup and view all the answers

Which of the following is NOT a requirement for maintaining systems?

User training Signup and view all the answers

What is one of the auditing objectives concerning the SDLC activities?

To ensure that management's policies are followed Signup and view all the answers

Which of the following is part of source program library controls?

Storing programs on the SPL Signup and view all the answers

What must be completed before the implementation of all program modules?

Thorough testing Signup and view all the answers

Which step is NOT part of the audit procedures for new systems?

Ignoring cost-benefit analysis Signup and view all the answers

What do auditors reconcile to verify the need for and accuracy of programs?

Maintenance requests and program listings Signup and view all the answers

What type of control is needed to prevent unauthorized program maintenance?

Password control Signup and view all the answers

Study Notes

Roles in Information Systems

Systems Professionals: Includes systems analysts, designers, and programmers for internal system development.
End Users: Comprises managers, operations personnel, accountants, and internal auditors who interact with the systems.
Stakeholders: Accountants, internal auditors, and external auditors play critical roles in assessing and utilizing information systems.

Resource Implications

Creation and purchase of Information Systems (IS) involve substantial financial resources.
Quality of Accounting Information Systems (AIS) directly tied to Software Development Life Cycle (SDLC) activities.

Systems Strategy and Design

Systems Strategy aims to mitigate risks associated with inefficient or unnecessary system creation.
Conceptual Design focuses on control implications and the system's auditability.
Systems Selection evaluates economic feasibility and potential benefits.

Development Approaches

In-house development and commercial systems are common methods for system creation.
Trends in commercial software include low-cost options, growth of the software industry, and increased business demand for technology.

Commercial Software Considerations

Advantages: Cost-effective implementation and reliability.
Disadvantages: Dependency on vendors and challenges in achieving customized solutions.

Systems Planning

Objective: Align individual projects with organizational strategic goals.
Strategic Systems Planning minimizes crises and provides controls for SDLC processes, including cost management and resource allocation.

System Analysis

The Survey Step establishes a foundation for the SDLC, analyzing the current system's limitations and advantages.
Various fact-gathering techniques include observation, interviews, questionnaires, and document reviews.

System Design and Auditing

Accountants and auditors must be involved early in systems analysis to address user needs effectively.
Testing individual system modules is crucial before rollout, ensuring quality and functionality.

Feasibility Assessment

A comprehensive feasibility study evaluates technical, economic, legal, operational, and schedule aspects.
Cost-benefit analysis includes identifying one-time versus recurring costs and ensuring tangible and intangible benefits are analyzed.

Programming and Testing

Emphasizes the modular approach to programming for efficiency in performance and maintenance.
Testing methodology focuses on identifying and addressing programming errors before systems go live.

Implementation Challenges

User engagement is critical throughout the implementation phase, including extensive documentation and training.
Various cutover strategies exist, such as cold turkey, phased, and parallel operations, each with distinct risks and benefits.

Auditor's Role

Auditors provide technical expertise, specify documentation standards, verify compliance, and assess system design adequacy.
Post-implementation reviews ensure systems meet specifications and assess the accuracy of initial cost and benefit estimates.

Maintenance Insights

Maintenance is often the most extensive phase of the SDLC, consuming 80-90% of the total system cost.
Proper change management involves technical specifications, testing, documentation updates, and formal authorizations.

Auditing Objectives

Auditing ensures adherence to SDLC policies, verifies absence of errors, assesses system necessity at checkpoints, and confirms documentation accuracy for audits and maintenance.
Source Program Library (SPL) controls are critical for managing application program source code, including storage, retrieval, and documentation of program changes.

Compliance and Documentation

Auditors ensure new systems are authorized, feasibility studies are completed, user needs are assessed, and thorough testing is performed before implementation.
Continuous reconciliation of program version numbers and changes verifies the integrity and accuracy of system maintenance activities.

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Description

This quiz explores the various roles in information systems, detailing the responsibilities of systems professionals, end users, and stakeholders. It also examines resource implications and development approaches within the context of systems strategy and design. Test your understanding of the critical aspects of information systems management.