RSM427H1 Lecture Notes - Lecture 4: Object Code, Economic Evaluation, Competitive Advantage
Document Summary
Lecture 4 it general controls: system development controls i. Why do we test systems development controls: to support reliance on application controls, to modify the nature, extent and timing of substantive test procedures. Computers do as they are told: the reliability of a computer system is only as good as the change management controls surrounding its development. Insufficient or inappropriate controls lead to errors in programming logic and consequently, errors in output. Some statistics on project failures: 40% of projects are not completed, 70% of projects are behind schedule or over budget, 80% of projects fail to deliver all of the expected benefits. Inaccurate record keeping: erroneous management decisions, unacceptable accounting policies, business interruption, built-in fraud, violation of legal statutes, excessive operating costs, budget overruns: costs go over, unfulfilled objectives: users need not adjusted. Incompetent personnel: system design errors, poor communication, no project kill points, consider incremental cost/benefits, temptations to computer abuse.
