Question 1

Explain how IT outsourcing can lead to loss of strategic advantage.

Accepted Answer

Alignment between IT strategy and busine

Question 2

External auditing is an independent appraisal function established within an organization to examine and evaluate its activities as a service to the organization.

Accepted Answer

A) True 
 B)False

Question 3

The least important item to store off-site in case of an emergency is

Accepted Answer

A)  backups of systems software 
B)  backups of application software 
C)  documentation and blank forms 
D)  results of the latest test of the disaster recovery program 
A)  backups of systems software 
B)  backups of application software 
C)  documentation and blank forms 
D)  results of the latest test of the disaster recovery program

Question 4

Name three forms of computer fraud.

Accepted Answer

Computer fraud includes: The theft,misus

Question 5

All of the following tests of controls will provide evidence about the adequacy of the disaster recovery plan except

Accepted Answer

A)  inspection of the second site backup 
B)  analysis of the fire detection system at the primary site 
C)  review of the critical applications list 
D)  composition of the disaster recovery team 
A)  inspection of the second site backup 
B)  analysis of the fire detection system at the primary site 
C)  review of the critical applications list 
D)  composition of the disaster recovery team

Question 6

Define database management fraud.

Accepted Answer

Database management fraud incl

Question 7

Transaction cost economics (TCE)theory suggests that firms should outsource specific non-core IT assets.

Accepted Answer

A) True 
 B)False

Question 8

Define general controls.

Accepted Answer

General controls apply to all systems.Th

Question 9

In a computer-based information system,which of the following duties needs to be separated?

Accepted Answer

A)  program coding from program operations 
B)  program operations from program maintenance 
C)  program maintenance from program coding 
D)  all of the above duties should be separated 
A)  program coding from program operations 
B)  program operations from program maintenance 
C)  program maintenance from program coding 
D)  all of the above duties should be separated

Question 10

Briefly outline transaction cost economics as it relates to IT outsourcing.

Accepted Answer

Transaction cost economics theory is in

Question 11

Both the SEC and the PCAOB require management to use the COBIT framework for assessing internal control adequacy.

Accepted Answer

A) True 
 B)False

Question 12

A cold site backup approach is also known as

Accepted Answer

A)  internally provided backup 
B)  recovery operations center 
C)  empty shell 
D)  mutual aid pact 
A)  internally provided backup 
B)  recovery operations center 
C)  empty shell 
D)  mutual aid pact

Question 13

What control framework is recommended by the PCAOB?

Accepted Answer

The PCAOB's Auditing Standard

Question 14

Distinguish between errors and irregularities.Which do you think concern the auditors the most?

Accepted Answer

Errors are unintentional mistakes; while

Question 15

Briefly explain the core competency theory.

Accepted Answer

Core competency theory argues that an or

Question 16

What is an auditor looking for when testing computer center controls?

Accepted Answer

When testing computer center controls,th

Question 17

Prior to SOX,external auditors were required to be familiar with the client organization's internal controls,but not test them.Explain.

Accepted Answer

Auditors had the option of not relying o

Question 18

Discuss the key features of Section 404 of the Sarbanes-Oxley Act.

Accepted Answer

Section 404 requires the management of p

Question 19

All of the following are steps in an IT audit except

Accepted Answer

A)  substantive testing 
B)  tests of controls 
C)  post-audit testing 
D)  audit planning 
A)  substantive testing 
B)  tests of controls 
C)  post-audit testing 
D)  audit planning

Question 20

The Sarbanes-Oxley Act contains many sections.Which sections are the focus of this chapter?

Accepted Answer

The chapter concentrates on in

Explain how IT outsourcing can lead to loss of strategic advantage.

External auditing is an independent appraisal function established within an organization to examine and evaluate its activities as a service to the organization.

The least important item to store off-site in case of an emergency is

Name three forms of computer fraud.

All of the following tests of controls will provide evidence about the adequacy of the disaster recovery plan except

Define database management fraud.

Transaction cost economics (TCE)theory suggests that firms should outsource specific non-core IT assets.

Define general controls.

In a computer-based information system,which of the following duties needs to be separated?

Briefly outline transaction cost economics as it relates to IT outsourcing.

Both the SEC and the PCAOB require management to use the COBIT framework for assessing internal control adequacy.

A cold site backup approach is also known as

What control framework is recommended by the PCAOB?

Distinguish between errors and irregularities.Which do you think concern the auditors the most?

Briefly explain the core competency theory.

What is an auditor looking for when testing computer center controls?

Prior to SOX,external auditors were required to be familiar with the client organization's internal controls,but not test them.Explain.

Discuss the key features of Section 404 of the Sarbanes-Oxley Act.

All of the following are steps in an IT audit except

The Sarbanes-Oxley Act contains many sections.Which sections are the focus of this chapter?

The Information System: an Accountants Perspective

Introduction to Transaction Processing

Ethics,fraud,and Internal Control

The Revenue Cycle

The Expenditure Cycle Part I: Purchases and Cash Disbursements Procedures

The Expenditure Cycle Part Ii: Payroll Processing and Fixed Asset Procedures

The Conversion Cycle

General Ledger,financial Reporting,and Management Reporting Systems

Database Management Systems

The Rea Approach to Business Process Modeling

Enterprise Resource Planning Systems

Electronic Commerce Systems

Managing the Systems Development Life Cycle

Construct,deliver,and Maintain Systems Projects

IT Controls Part II: Security and Access

IT Controls Part III: Systems Development, program Changes, and Application Controls

Filters

Exam 15: IT Controls Part I: Sarbanes-Oxley and It Governance

Explain how IT outsourcing can lead to loss of strategic advantage.

External auditing is an independent appraisal function established within an organization to examine and evaluate its activities as a service to the organization.

The least important item to store off-site in case of an emergency is

Name three forms of computer fraud.

All of the following tests of controls will provide evidence about the adequacy of the disaster recovery plan except

Define database management fraud.

Transaction cost economics (TCE)theory suggests that firms should outsource specific non-core IT assets.

Define general controls.

In a computer-based information system,which of the following duties needs to be separated?

Briefly outline transaction cost economics as it relates to IT outsourcing.

Both the SEC and the PCAOB require management to use the COBIT framework for assessing internal control adequacy.

A cold site backup approach is also known as

What control framework is recommended by the PCAOB?

Distinguish between errors and irregularities.Which do you think concern the auditors the most?

Briefly explain the core competency theory.

What is an auditor looking for when testing computer center controls?

Prior to SOX,external auditors were required to be familiar with the client organization's internal controls,but not test them.Explain.

Discuss the key features of Section 404 of the Sarbanes-Oxley Act.

All of the following are steps in an IT audit except

The Sarbanes-Oxley Act contains many sections.Which sections are the focus of this chapter?

The Information System: an Accountants Perspective

Introduction to Transaction Processing

Ethics,fraud,and Internal Control

The Revenue Cycle

The Expenditure Cycle Part I: Purchases and Cash Disbursements Procedures

The Expenditure Cycle Part Ii: Payroll Processing and Fixed Asset Procedures

The Conversion Cycle

General Ledger,financial Reporting,and Management Reporting Systems

Database Management Systems

The Rea Approach to Business Process Modeling

Enterprise Resource Planning Systems

Electronic Commerce Systems

Managing the Systems Development Life Cycle

Construct,deliver,and Maintain Systems Projects

IT Controls Part II: Security and Access

IT Controls Part III: Systems Development, program Changes, and Application Controls

Filters