FiddleWare Limited Uses a Purchased Software Package to Handle the Processing

question 41

Multiple Choice

FiddleWare Limited uses a purchased software package to handle the processing of its transactions.An important control that management should implement with respect to information systems is the

• A)use of a formal systems development methodology.
• B)evaluation of potential new systems against organizational objectives.
• C)use of appropriate checkpoints and milestones during development.
• D)tracking of routine program maintenance changes.

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Definitions:

Average Annual Return

The compound annual growth rate of an investment over a specified period of time.

Fama and French

A multifactored model developed by Eugene Fama and Kenneth French to describe stock returns, incorporating market, size, and value factors among others.

Efficient-Market Hypothesis

A theory that suggests that financial markets fully absorb and reflect all available information, making it impossible to consistently achieve higher returns than the market average.

Small Investor

An individual investor who makes relatively small amounts of investments in the stock market or other financial markets, often with limited resources.