Question 1

ELH Corporation's process for buying inventory is well defined; the process also has metrics that establish goals for the process.Which level of the capability maturity model best describes ELH's inventory purchase process?

Accepted Answer

A) Repeatable 
B) Defined 
C) Managed 
D) Optimized

Question 2

MCL Corporation recently hired a consultant to design and implement a new information system.The consultant was trying to decide whether to discard the old system all at once and put the new system in its place, or to make the transition more gradual.After making that choice, which of the following should the consultant do based on the steps in the systems development life cycle?

Accepted Answer

A) Present MCL with an invoice. 
B) Teach MCL employees how the system works. 
C) Arrange for the system to be audited. 
D) Determine which level of the capability maturity model describes the system.

Question 3

The chapter discussed four macro-level and four micro-level factors that should be considered when evaluating information technology for use in the accounting information system.It also discussed Sylla and Wen's three-stage process for evaluating information technology investments.Which of the following best pairs a micro-level factor with a level from the Sylla and Wen framework?

Accepted Answer

A) Strategic fit, intangible benefits evaluation 
B) Cost, tangible benefits evaluation 
C) Both strategic fit, intangible benefits evaluation and cost, tangible benefits evaluation 
D) Neither strategic fit, intangible benefits evaluation nor cost, tangible benefits evaluation

Question 4

You have been asked to develop a system that will track your company's short-term investments.Outline and discuss, in a general way, the steps you would use to accomplish that goal.

Accepted Answer

The answer of You have been asked to develop a...

Question 5

Consider the table below as you respond to the questions:  Based on the usual order of the seven-step process QRM is using, which of the following should occur last?

Accepted Answer

A) Item A in the table 
B) Item F in the table 
C) Item C in the table 
D) Item D in the table

Question 6

Which of the following questions best relates to a macro-level factor for choosing information technology for the accounting information system?

Accepted Answer

A) What will the technology cost? 
B) Should we borrow money to purchase the technology? 
C) How many employees will have to learn to use the new system? 
D) All of these relate to macro-level factors.

Question 7

Liam has developed a good process for safeguarding his company's information technology assets.He has completed the following actions with respect to the process: (i) talked about his methodology with some of his co-workers, (ii) created a schedule for applying his process to various kinds of information technology assets, (iii) explained how his process relates to similar processes in his company.Which of the following best pairs one of Liam's actions with a level of the capability maturity model?

Accepted Answer

A) I, chaotic 
B) I, optimized 
C) III, defined 
D) None of these, since the CMM cannot be applied in this situation.

Question 8

Liam has developed a good process for safeguarding his company's information technology assets.He has completed the following actions with respect to the process: (i) talked about his methodology with some of his co-workers, (ii) created a schedule for applying his process to various kinds of information technology assets, (iii) explained how his process relates to similar processes in his company.To move the process up one level in the capability maturity model, Liam should:

Accepted Answer

A) Publish the details of his process in the company newsletter. 
B) Publish the details of his process in a practitioner journal article. 
C) Establish a budget for the process. 
D) Relate it to the four purposes of internal control.

Question 9

Raul was leading a team charged with developing a new system for budgeting.If he decides to use the systems development life cycle, which of the following questions would he most likely ask during its second step?

Accepted Answer

A) Do we really need a new budgeting system? 
B) How many people should be on the team? 
C) What goals should the new budgeting system achieve? 
D) Should we use Excel or some other information technology tool?

Question 10

Consider the table below as you respond to the questions:  Which of the following is the best choice for Item D in the table?

Accepted Answer

A) Initiation/planning 
B) Build 
C) Implementation 
D) Operations and maintenance

Question 11

RSP Corporation started developing its internal audit process five years ago.When the process started, every internal auditor did things differently.But, the process has progressed until now, many employees at RSP think about ways to improve both the internal audit process and other business processes continually.Which level of the capability maturity model best describes RSP's internal audit process?

Accepted Answer

A) Repeatable 
B) Defined 
C) Managed 
D) Optimized

Question 12

Consider the table below as you respond to the questions:  Which of the following is the best choice for Item E in the table?

Accepted Answer

A) Based on feedback from employee interviews, plan the organization and appearance of each module. 
B) State law mandates annual safety training for all employees. 
C) Review the relevant law to determine its specifications. 
D) Require all employees to complete the training.

Question 13

All of the following are levels of the capability maturity model except:

Accepted Answer

A) Analytical 
B) Repeatable 
C) Defined 
D) Managed

Question 14

As part of your company's effort to design an enterprise risk management plan using the COSO framework, you have been asked to develop an information technology tool that will monitor the plan.Use the steps in the systems development life cycle to explain how you would proceed; ensure that your discussion includes ideas specific to monitoring the ERM plan.

Accepted Answer

The answer of As part of your company's effort to...

Question 15

Although CPK Corporation had a process for paying vendor invoices, Lindsay thought it didn't work well.So, she used her own system without telling her supervisor or co-workers.Assume the process would be classified as "chaotic" using the capability maturity model.For each subsequent level of the CMM, suggest one action Lindsay should take to improve the process.

Accepted Answer

The answer of Although CPK Corporation had a process for...

Question 16

Consider the table below as you respond to the questions:  Based on the usual order of the seven-step process QRM is using, which of the following should occur first?

Accepted Answer

A) Item A in the table 
B) Item F in the table 
C) Item C in the table 
D) Item D in the table

Question 17

Consider the table below as you respond to the questions:  Which of the following is the best choice for Item F in the table?

Accepted Answer

A) Initiation/planning 
B) Build 
C) Implementation 
D) Operations and maintenance

Question 18

The chapter discussed four macro-level and four micro-level factors that should be considered when evaluating information technology for use in the accounting information system.It also discussed Sylla and Wen's three-stage process for evaluating information technology investments.Which of the following best pairs a macro-level factor with a level from the Sylla and Wen framework?

Accepted Answer

A) Strategic fit, intangible benefits evaluation 
B) Need, IT investment risk analysis 
C) Vendor reliability, tangible benefits evaluation 
D) None of these.

Question 19

Jack and Lindsay were choosing a new general ledger system for the company they own.They decided to use three factors for the evaluation: adaptability, strategic fit and training.They considered training three times more important than strategic fit; they considered adaptability twice as important as strategic fit.To keep their evaluation simple, they assigned a weight of "1" to strategic fit.If software package A had scores of 5 on adaptability, 8 on strategic fit and 9 on training, its score using the weighted-rating technique will be:

Accepted Answer

A) 6. 
B) 22. 
C) 45. 
D) Some other number.

Question 20

Please consider these independent cases as you respond to the question: • Austin is the managing partner of a small CPA firm.In an effort to standardize certain internal business processes, Austin formed a team that developed a set of guidelines for tasks such as expense reimbursements and information technology purchases.After developing the guidelines, the team devised ways to determine if the processes are performing as expected.• Julie is the chief financial officer of PSC Corporation.She recently worked with a team to develop a broad set of principles that should characterize PSC's business processes.The team has applied those principles to some tasks in the accounting department; their next task is to teach other PSC employees about the principles.• Rob is an accountant at CTR Company.The owners of CTR, Lynn and Mark, don't know much about accounting, so Rob completes accounting tasks in whatever way seems best to him.For Julie to move her company's business processes forward one level in the capability maturity model, she should:

Accepted Answer

A) Make sure all PSC employees can list the principles her team developed. 
B) Develop a written procedures manual that will help manage the processes. 
C) Set benchmarks for each business process related to cost and time. 
D) None of these; PSC's business processes are already at the highest level of the capability maturity model.

Exam 6: Information Systems Concepts

ELH Corporation's process for buying inventory is well defined; the process also has metrics that establish goals for the process.Which level of the capability maturity model best describes ELH's inventory purchase process?

You have been asked to develop a system that will track your company's short-term investments.Outline and discuss, in a general way, the steps you would use to accomplish that goal.

Consider the table below as you respond to the questions: Based on the usual order of the seven-step process QRM is using, which of the following should occur last?

Which of the following questions best relates to a macro-level factor for choosing information technology for the accounting information system?

Raul was leading a team charged with developing a new system for budgeting.If he decides to use the systems development life cycle, which of the following questions would he most likely ask during its second step?

Consider the table below as you respond to the questions: Which of the following is the best choice for Item D in the table?

Consider the table below as you respond to the questions: Which of the following is the best choice for Item E in the table?

All of the following are levels of the capability maturity model except:

Consider the table below as you respond to the questions: Based on the usual order of the seven-step process QRM is using, which of the following should occur first?

Consider the table below as you respond to the questions: Which of the following is the best choice for Item F in the table?