Question 1

Explain why reduced security is an outsourcing risk.

Accepted Answer

Information outsourced to off-shore IT v

Question 2

An advantage of a recovery operations center is that

Accepted Answer

A)  this is an inexpensive solution 
B)  the initial recovery period is very quick 
C)  the company has sole control over the administration of the center 
D)  none of the above are advantages of the recovery operations center 
A)  this is an inexpensive solution 
B)  the initial recovery period is very quick 
C)  the company has sole control over the administration of the center 
D)  none of the above are advantages of the recovery operations center

Question 3

The following are examples of commodity assets except

Accepted Answer

A)  network management 
B)  systems operations 
C)  systems development 
D)  server maintenance 
A)  network management 
B)  systems operations 
C)  systems development 
D)  server maintenance

Question 4

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

Accepted Answer

Transaction cost economics theory is in

Question 5

What are the often cited benefits of IT outsourcing?

Accepted Answer

Oft-cited benefits of IT outso

Question 6

Which of the following is not true?

Accepted Answer

A)  When management outsources their organization's IT functions, they also outsource responsibility for internal control. 
B)  Once a client firm has outsourced specific IT assets, its performance becomes linked to the vendor's performance. 
C)  IT outsourcing may affect incongruence between a firm's IT strategic planning and its business planning functions. 
D)  The financial justification for IT outsourcing depends upon the vendor achieving economies of scale. 
A)  When management outsources their organization's IT functions, they also outsource responsibility for internal control. 
B)  Once a client firm has outsourced specific IT assets, its performance becomes linked to the vendor's performance. 
C)  IT outsourcing may affect incongruence between a firm's IT strategic planning and its business planning functions. 
D)  The financial justification for IT outsourcing depends upon the vendor achieving economies of scale.

Question 7

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

Accepted Answer

When testing computer center controls, t

Question 8

Distributed data processing places the control IT recourses under end users.

Accepted Answer

A) True 
 B)False

Question 9

Why is poor-quality systems documentation a prevalent problem?

Accepted Answer

Systems professionals do not find this d

Question 10

Explain vendor exploitation.

Accepted Answer

Once the client firm has divested itself

Question 11

To ensure sound internal control, program coding and program processing should be separated.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

A ROC is generally shared with multiple companies.

Accepted Answer

A) True 
 B)False

Question 14

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 15

Participation in system development activities include:

Accepted Answer

A)  system analysts, database designers and programmers 
B)  managers and operating personnel who work directly with the system 
C)  accountants and auditors 
D)  all of the above 
A)  system analysts, database designers and programmers 
B)  managers and operating personnel who work directly with the system 
C)  accountants and auditors 
D)  all of the above

Question 16

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 17

What are the objectives of IT Governance?

Accepted Answer

Key objectives of IT governanc

Question 18

All of the following are recommended features of a fire protection system for a computer center except

Accepted Answer

A)  clearly marked exits 
B)  an elaborate water sprinkler system 
C)  manual fire extinguishers in strategic locations 
D)  automatic and manual alarms in strategic locations 
A)  clearly marked exits 
B)  an elaborate water sprinkler system 
C)  manual fire extinguishers in strategic locations 
D)  automatic and manual alarms in strategic locations

Question 19

Commodity IT assets include such things are network management.

Accepted Answer

A) True 
 B)False

Question 20

What are the advantages of separting new systems development from systems maintenance?

Accepted Answer

Documentation standards are improved bec

Explain why reduced security is an outsourcing risk.

An advantage of a recovery operations center is that

The following are examples of commodity assets except

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

What are the often cited benefits of IT outsourcing?

Which of the following is not true?

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

Distributed data processing places the control IT recourses under end users.

Why is poor-quality systems documentation a prevalent problem?

Explain vendor exploitation.

To ensure sound internal control, program coding and program processing should be separated.

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

A ROC is generally shared with multiple companies.

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

Participation in system development activities include:

Which of the following is not true?

What are the objectives of IT Governance?

All of the following are recommended features of a fire protection system for a computer center except

Commodity IT assets include such things are network management.

What are the advantages of separting new systems development from systems maintenance?

Auditing and Internal Control

Auditing Operating Systems and Networks

Auditing Database Systems

Systems Development and Program Change Activities

Transaction Processing and Financial Reporting Systems Overview

Computer Assisted Audit Tools and Techniques

Data Structures and Caatts for Data Extraction

Auditing the Revenue Cycle

Auditing the Expenditure Cycle

Enterprise Resource Planning Systems

Business Ethics, Fraud, and Fraud Detection

Filters

Exam 2: Auditing IT Governance Controls

Explain why reduced security is an outsourcing risk.

An advantage of a recovery operations center is that

The following are examples of commodity assets except

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

What are the often cited benefits of IT outsourcing?

Which of the following is not true?

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

Distributed data processing places the control IT recourses under end users.

Why is poor-quality systems documentation a prevalent problem?

Explain vendor exploitation.

To ensure sound internal control, program coding and program processing should be separated.

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

A ROC is generally shared with multiple companies.

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

Participation in system development activities include:

Which of the following is not true?

What are the objectives of IT Governance?

All of the following are recommended features of a fire protection system for a computer center except

Commodity IT assets include such things are network management.

What are the advantages of separting new systems development from systems maintenance?

Auditing and Internal Control

Auditing Operating Systems and Networks

Auditing Database Systems

Systems Development and Program Change Activities

Transaction Processing and Financial Reporting Systems Overview

Computer Assisted Audit Tools and Techniques

Data Structures and Caatts for Data Extraction

Auditing the Revenue Cycle

Auditing the Expenditure Cycle

Enterprise Resource Planning Systems

Business Ethics, Fraud, and Fraud Detection

Filters