Question 1

Which of the following is not true?

Accepted Answer

A) Large-scale IT outsourcing involves transferring specific assets to a vendor 
B) Specific assets,while valuable to the client,are of little value to the vendor 
C) Once an organization outsources its specific assets,it may not be able to return to its pre-outsource state. 
D) Specific assets are of value to vendors because,once acquired,vendors can achieve economies of scale by employing them with other clients 
A) Large-scale IT outsourcing involves transferring specific assets to a vendor 
B) Specific assets,while valuable to the client,are of little value to the vendor 
C) Once an organization outsources its specific assets,it may not be able to return to its pre-outsource state. 
D) Specific assets are of value to vendors because,once acquired,vendors can achieve economies of scale by employing them with other clients

Question 2

A strong internal control system will reduce the amount of substantive testing that must be performed.

Accepted Answer

A) True 
 B)False

Question 3

All of the following tests of controls will provide evidence about the physical security of the computer center except

Accepted Answer

A)  review of fire marshal records 
B)  review of the test of the backup power supply 
C)  verification of the second site backup location 
D)  observation of procedures surrounding visitor access to the computer center 
A)  review of fire marshal records 
B)  review of the test of the backup power supply 
C)  verification of the second site backup location 
D)  observation of procedures surrounding visitor access to the computer center

Question 4

Which of the following is true?

Accepted Answer

A)  In the CBIS environment,auditors gather evidence relating only to the contents of databases,not the reliability of the computer system. 
B)  Conducting an audit is a systematic and logical process that applies to all forms of information systems. 
C)  Substantive tests establish whether internal controls are functioning properly. 
D)  IT auditors prepare the audit report if the system is computerized. 
A)  In the CBIS environment,auditors gather evidence relating only to the contents of databases,not the reliability of the computer system. 
B)  Conducting an audit is a systematic and logical process that applies to all forms of information systems. 
C)  Substantive tests establish whether internal controls are functioning properly. 
D)  IT auditors prepare the audit report if the system is computerized.

Question 5

Changing the Hours Worked field in an otherwise legitimate payroll transaction to increase the amount of the paycheck is an example of data collection fraud.

Accepted Answer

A) True 
 B)False

Question 6

What is a mirrored data center?

Accepted Answer

A mirrored data center duplica

Question 7

Discuss the advantages and disadvantages of the second site backup options.

Accepted Answer

Second site backups include mutual aid p

Question 8

Segregation of duties in the computer-based information system includes

Accepted Answer

A)  separating the programmer from the computer operator 
B)  preventing management override 
C)  separating the inventory process from the billing process 
D)  performing independent verifications by the computer operator 
A)  separating the programmer from the computer operator 
B)  preventing management override 
C)  separating the inventory process from the billing process 
D)  performing independent verifications by the computer operator

Question 9

Which of the following is true?

Accepted Answer

A) Core competency theory argues that an organization should outsource specific core assets. 
B) Core competency theory argues that an organization should focus exclusively on its core business competencies 
C) Core competency theory argues that an organization should not outsource specific commodity assets. 
D) Core competency theory argues that an organization should retain certain specific non-core assets in-house. 
A) Core competency theory argues that an organization should outsource specific core assets. 
B) Core competency theory argues that an organization should focus exclusively on its core business competencies 
C) Core competency theory argues that an organization should not outsource specific commodity assets. 
D) Core competency theory argues that an organization should retain certain specific non-core assets in-house.

Question 10

For most companies,which of the following is the least critical application for disaster recovery purposes?

Accepted Answer

A)  month-end adjustments 
B)  accounts receivable 
C)  accounts payable 
D)  order entry/billing 
A)  month-end adjustments 
B)  accounts receivable 
C)  accounts payable 
D)  order entry/billing

Question 11

Contrast internal and external auditing.

Accepted Answer

Internal auditing is an independent appr

Question 12

Explain why certain duties that are deemed incompatible in a manual system may be combined in an automated environment? Give an example.

Accepted Answer

In an automated environment it would be

Question 13

Typically,internal auditors perform all of the following tasks except

Accepted Answer

A)  IT audits 
B)  evaluation of operational efficiency 
C)  review of compliance with legal obligations 
D)  internal auditors perform all of the above tasks 
A)  IT audits 
B)  evaluation of operational efficiency 
C)  review of compliance with legal obligations 
D)  internal auditors perform all of the above tasks

Question 14

What is IT Governance?

Accepted Answer

IT governance is a broad concept relatin

Question 15

Computer fraud is easiest at the data collection stage.Why?

Accepted Answer

Computer fraud is easiest at the data co

Question 16

Application controls apply to a wide range of exposures that threaten the integrity of all programs processed within the computer environment.

Accepted Answer

A) True 
 B)False

Question 17

All of the following are issues of computer security except

Accepted Answer

A)  releasing incorrect data to authorized individuals 
B)  permitting computer operators unlimited access to the computer room 
C)  permitting access to data by unauthorized individuals 
D)  providing correct data to unauthorized individuals 
A)  releasing incorrect data to authorized individuals 
B)  permitting computer operators unlimited access to the computer room 
C)  permitting access to data by unauthorized individuals 
D)  providing correct data to unauthorized individuals

Question 18

Inherent risk

Accepted Answer

A)  exists because all control structures are flawed in some ways. 
B)  is the likelihood that material misstatements exist in the financial statements of the firm. 
C)  is associated with the unique characteristics of the business or industry of the client. 
D)  is the likelihood that the auditor will not find material misstatements. 
A)  exists because all control structures are flawed in some ways. 
B)  is the likelihood that material misstatements exist in the financial statements of the firm. 
C)  is associated with the unique characteristics of the business or industry of the client. 
D)  is the likelihood that the auditor will not find material misstatements.

Question 19

The major disadvantage of an empty shell solution as a second site backup is

Accepted Answer

A)  the host site may be unwilling to disrupt its processing needs to process the critical applications of the disaster stricken company 
B)  intense competition for shell resources during a widespread disaster 
C)  maintenance of excess hardware capacity 
D)  the control of the shell site is an administrative drain on the company 
A)  the host site may be unwilling to disrupt its processing needs to process the critical applications of the disaster stricken company 
B)  intense competition for shell resources during a widespread disaster 
C)  maintenance of excess hardware capacity 
D)  the control of the shell site is an administrative drain on the company

Question 20

What is a disaster recovery plan? What are the key features?

Accepted Answer

A disaster recovery plan is a comprehens

Which of the following is not true?

A strong internal control system will reduce the amount of substantive testing that must be performed.

All of the following tests of controls will provide evidence about the physical security of the computer center except

Which of the following is true?

Changing the Hours Worked field in an otherwise legitimate payroll transaction to increase the amount of the paycheck is an example of data collection fraud.

What is a mirrored data center?

Discuss the advantages and disadvantages of the second site backup options.

Segregation of duties in the computer-based information system includes

Which of the following is true?

For most companies,which of the following is the least critical application for disaster recovery purposes?

Contrast internal and external auditing.

Explain why certain duties that are deemed incompatible in a manual system may be combined in an automated environment? Give an example.

Typically,internal auditors perform all of the following tasks except

What is IT Governance?

Computer fraud is easiest at the data collection stage.Why?

Application controls apply to a wide range of exposures that threaten the integrity of all programs processed within the computer environment.

All of the following are issues of computer security except

Inherent risk

The major disadvantage of an empty shell solution as a second site backup is

What is a disaster recovery plan? What are the key features?

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

Which of the following is not true?

A strong internal control system will reduce the amount of substantive testing that must be performed.

All of the following tests of controls will provide evidence about the physical security of the computer center except

Which of the following is true?

Changing the Hours Worked field in an otherwise legitimate payroll transaction to increase the amount of the paycheck is an example of data collection fraud.

What is a mirrored data center?

Discuss the advantages and disadvantages of the second site backup options.

Segregation of duties in the computer-based information system includes

Which of the following is true?

For most companies,which of the following is the least critical application for disaster recovery purposes?

Contrast internal and external auditing.

Explain why certain duties that are deemed incompatible in a manual system may be combined in an automated environment? Give an example.

Typically,internal auditors perform all of the following tasks except

What is IT Governance?

Computer fraud is easiest at the data collection stage.Why?

Application controls apply to a wide range of exposures that threaten the integrity of all programs processed within the computer environment.

All of the following are issues of computer security except

Inherent risk

The major disadvantage of an empty shell solution as a second site backup is

What is a disaster recovery plan? What are the key features?

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