Chapter 5: Systems development
Multiple-choice questions
1. Organisations face the need for systems development for various reasons. Which of
the following is one of these reasons?
a. New accounting requirements.
b. A new strategic opportunity has been identified that will allow the business to
improve its strategic position.
c. New regulatory requirements.
*d. All of the options are correct.
Correct answer: d
Learning objective 5.1 – exhibit judgement in explaining how business size and complexity
may influence the choice of systems development strategy for an organisation.
2. Which of the following statements regarding accounting systems is not true is not
true?
a. Large organisations will find simple accounting system hard to satisfy their
needs.
*b. ERP systems are also suitable for small organisations.
c. Medium-sized organisations are better off using mid-range accounting
systems.
d. None of the options is correct.
Correct answer: b
Learning objective 5.1 – exhibit judgement in explaining how business size and complexity
may influence the choice of systems development strategy for an organisation.
3. A successful implementation of an ERP system is:
a. complex.
b. time-consuming.
c. expensive.
*d. all of the options are correct.
Correct answer: d
Learning objective 5.1 – exhibit judgement in explaining how business size and complexity
may influence the choice of systems development strategy for an organisation.
, Chapter 5: Systems development
4. Which of the following must be involved in each stage of systems development to
ensure that adequate internal controls are built into the new system as it is designed?
a. Executives.
*b. Internal auditors.
c. External auditors.
d. All of the options are correct.
Correct answer: b
Learning objective 5.2 – summarise the stages of the systems development life cycle and
critically evaluate the importance of organisational strategy as the basis for systems
development.
5. What is the advantage of adopting the system development lifecycle (SDLC)
approach?
a. Development is very rapid.
b. It is the cheapest approach.
*c. The final system is well documented.
d. It is flexible if the user changes the requirements.
Correct answer: c
Learning objective 5.2 – summarise the stages of the systems development life cycle and
critically evaluate the importance of organisational strategy as the basis for systems
development.
6. When considering new opportunities for technology within the organisation, it is
critical to consider:
a. whether the technology is the latest available.
*b. whether the technology aligns with the overall organisational strategy.
c. whether the technology is user friendly.
d. all of the options are correct.
Correct answer: b
Learning objective 5.2 – summarise the stages of the systems development life cycle and
critically evaluate the importance of organisational strategy as the basis for systems
development.
5.1
, 7. Systems problems and opportunities cannot be identified through:
a. user and stakeholder feedback.
b. a periodic review of system operations.
c. observing the system in action by watching users.
*d. examining system documentations.
Correct answer: d
Learning objective 5.2 – summarise the stages of the systems development life cycle and
critically evaluate the importance of organisational strategy as the basis for systems
development.
8. Customers complain to an organisation about a system that bills them incorrectly. As
a result, the organisation decided to implement a new billing system. This is an
example of identifying system development opportunities through:
*a. user and stakeholder feedback.
b. a periodic review of system operations.
c. observing the system in action by watching users.
d. all of the options are correct.
Correct answer: a
Learning objective 5.2 – summarise the stages of the systems development life cycle and
critically evaluate the importance of organisational strategy as the basis for systems
development.
9. Which of the following statement is not true?
a. A new system should reserve a reasonable amount of computing power and
data storage capacity for future needs.
b. Identifying the key events that occur within a business process and how well
the current system handles these events can be a powerful way to identify
problems in the current system.
*c. Adding new and more powerful hardware to a system can always improve the
system's performance.
d. Sometimes a new software system, even if it still operates on existing
hardware, can bring about significant increase in transaction processing speed.
Correct answer: c
Learning objective 5.2 – summarise the stages of the systems development life cycle and
critically evaluate the importance of organisational strategy as the basis for systems
development.
5.2
Multiple-choice questions
1. Organisations face the need for systems development for various reasons. Which of
the following is one of these reasons?
a. New accounting requirements.
b. A new strategic opportunity has been identified that will allow the business to
improve its strategic position.
c. New regulatory requirements.
*d. All of the options are correct.
Correct answer: d
Learning objective 5.1 – exhibit judgement in explaining how business size and complexity
may influence the choice of systems development strategy for an organisation.
2. Which of the following statements regarding accounting systems is not true is not
true?
a. Large organisations will find simple accounting system hard to satisfy their
needs.
*b. ERP systems are also suitable for small organisations.
c. Medium-sized organisations are better off using mid-range accounting
systems.
d. None of the options is correct.
Correct answer: b
Learning objective 5.1 – exhibit judgement in explaining how business size and complexity
may influence the choice of systems development strategy for an organisation.
3. A successful implementation of an ERP system is:
a. complex.
b. time-consuming.
c. expensive.
*d. all of the options are correct.
Correct answer: d
Learning objective 5.1 – exhibit judgement in explaining how business size and complexity
may influence the choice of systems development strategy for an organisation.
, Chapter 5: Systems development
4. Which of the following must be involved in each stage of systems development to
ensure that adequate internal controls are built into the new system as it is designed?
a. Executives.
*b. Internal auditors.
c. External auditors.
d. All of the options are correct.
Correct answer: b
Learning objective 5.2 – summarise the stages of the systems development life cycle and
critically evaluate the importance of organisational strategy as the basis for systems
development.
5. What is the advantage of adopting the system development lifecycle (SDLC)
approach?
a. Development is very rapid.
b. It is the cheapest approach.
*c. The final system is well documented.
d. It is flexible if the user changes the requirements.
Correct answer: c
Learning objective 5.2 – summarise the stages of the systems development life cycle and
critically evaluate the importance of organisational strategy as the basis for systems
development.
6. When considering new opportunities for technology within the organisation, it is
critical to consider:
a. whether the technology is the latest available.
*b. whether the technology aligns with the overall organisational strategy.
c. whether the technology is user friendly.
d. all of the options are correct.
Correct answer: b
Learning objective 5.2 – summarise the stages of the systems development life cycle and
critically evaluate the importance of organisational strategy as the basis for systems
development.
5.1
, 7. Systems problems and opportunities cannot be identified through:
a. user and stakeholder feedback.
b. a periodic review of system operations.
c. observing the system in action by watching users.
*d. examining system documentations.
Correct answer: d
Learning objective 5.2 – summarise the stages of the systems development life cycle and
critically evaluate the importance of organisational strategy as the basis for systems
development.
8. Customers complain to an organisation about a system that bills them incorrectly. As
a result, the organisation decided to implement a new billing system. This is an
example of identifying system development opportunities through:
*a. user and stakeholder feedback.
b. a periodic review of system operations.
c. observing the system in action by watching users.
d. all of the options are correct.
Correct answer: a
Learning objective 5.2 – summarise the stages of the systems development life cycle and
critically evaluate the importance of organisational strategy as the basis for systems
development.
9. Which of the following statement is not true?
a. A new system should reserve a reasonable amount of computing power and
data storage capacity for future needs.
b. Identifying the key events that occur within a business process and how well
the current system handles these events can be a powerful way to identify
problems in the current system.
*c. Adding new and more powerful hardware to a system can always improve the
system's performance.
d. Sometimes a new software system, even if it still operates on existing
hardware, can bring about significant increase in transaction processing speed.
Correct answer: c
Learning objective 5.2 – summarise the stages of the systems development life cycle and
critically evaluate the importance of organisational strategy as the basis for systems
development.
5.2
