[Amay]

What the heck are they talking about here? Can someone please explain this to me?? IT baffles me :/

Which of the following items would be most critical to include in a systems specification document for a financial report?

a. Communication change management considerations.

b. Data elements needed.

c. Training requirements.

d. Cost-benefit analysis.

Explanation

Choice “b” is correct. Data elements should always be included in the system specification document for a financial report. Data elements define the building blocks of the information provided in a financial report.

Choice “d” is incorrect. Cost-benefit analysis would not be included in the system specification document. The determination that the benefits outweigh the costs of a particular system is determined before the development of specifications.

Choice “c” is incorrect. Training requirements would not be included in the systems specification document for a financial report. Training requirements associated with generating the report would be found in an implementation plan, but not in a systems specifications document.

Choice “a” is incorrect. Communication change management considerations would not be included in the specification document for a financial report. Change management contemplates the control monitoring procedures of the system, not the specifications of a financial report.

BEC: 73, 81
AUD: 85
FAR: 71, 77
REG: 74, 75...finally DONE! 😀

*This is my 2nd attempt at the CPA exam. For all of you who have failed this exam many times, given up on it, or taken a break like me, remember that it is still possible to finish what you started...failure is the opportunity to begin again more intelligently 🙂

[SeattleAccountant]

@Yama

Accounting department specifies what needs to be in the system (so accountants can issue financial reports), for example, list of report item titles, types of revenues/expenditures, type of reports, closing procedure and so on and IT department builds/implements/modifies system appropriately.

Now let's go back to the question. Do you see a phrase “for a financial report” and above it “most critical to include”? Out of all presented options, the most critical to include in system specification would be the list provided by the accounting department describing needed data elements that are routinely used to produce financial statement. For an example, there must be “Revenue” or “Gross Sales” or other to reflect data element that corresponds to operating inflows and so.

Becker Class of Jan - Aug 2013: FARB DONE!!!!
CPA license pending 🙂

[Amay]

OK thanks so much! It is easy to miss the link between IT and financial side with all these IT terms being thrown at you.

BEC: 73, 81
AUD: 85
FAR: 71, 77
REG: 74, 75...finally DONE! 😀

*This is my 2nd attempt at the CPA exam. For all of you who have failed this exam many times, given up on it, or taken a break like me, remember that it is still possible to finish what you started...failure is the opportunity to begin again more intelligently 🙂

[SeattleAccountant]

@Yama

Yeah, I figured that you somehow missed the part about financial report specifications!

Looks like you have exam in July, how far are you so into those 6 chapters?

I'm on chapter 5 MCQ 1/2 done. So, 1 lecture remains to be viewed + MCQ. After that review for second time and start preparing for WC which I fear.

Becker Class of Jan - Aug 2013: FARB DONE!!!!
CPA license pending 🙂

[Amay]

Yes I am cramming for this test and IT was not something I have spent too much time going over….I am going to need a miracle tomorrow!

BEC: 73, 81
AUD: 85
FAR: 71, 77
REG: 74, 75...finally DONE! 😀

*This is my 2nd attempt at the CPA exam. For all of you who have failed this exam many times, given up on it, or taken a break like me, remember that it is still possible to finish what you started...failure is the opportunity to begin again more intelligently 🙂

[SeattleAccountant]

IT is actually my strength 🙂

But WC gives me nightmares!

Good luck on your test, you can do it! If not sure, pick an educated guess and move on.

Becker Class of Jan - Aug 2013: FARB DONE!!!!
CPA license pending 🙂

[Amay]

Thank you! That's the plan! 😉

BEC: 73, 81
AUD: 85
FAR: 71, 77
REG: 74, 75...finally DONE! 😀

*This is my 2nd attempt at the CPA exam. For all of you who have failed this exam many times, given up on it, or taken a break like me, remember that it is still possible to finish what you started...failure is the opportunity to begin again more intelligently 🙂

[Author]

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