Business Process & IT Missed Questions Flashcards
Which network configuration is distinguished by the possibility of spreading the cost of ownership among multiple organizations?
A. Local area network
B. Wide area network
C. Baseband network
D. Value-added network
B. Wide area network
Wide area networks consist of a conglomerate of local area networks (LANs) over widely separated locations. The key aspect here is that a WAN can be either publicly or privately owned.
The primary objective of data security controls is?
A. To establish a framework for controlling the design, security, and use of computer programs throughout an organization.
B. To monitor the use of system software to prevent unauthorized access to system software and computer programs.
C. To formalize standards, rules, and procedures to ensure the organization’s controls are properly executed.
D. To ensure that storage media are subject to authorization prior to access, change, or destruction.
D. To ensure that storage media are subject to authorization prior to access, change, or destruction.
The primary objective of data security is to protect data. This includes ensuring that storage media are subject to authorization prior to access, change, or destruction.
Which of the following statements is true concerning internal control in an electronic data interchange (EDI) system?
A. Preventive controls generally are more important than detective controls in EDI systems.
B. Internal controls in EDI systems rarely permit control risk to be assessed at below the maximum.
C. Internal controls related to the segregation of duties generally are the most important controls in EDI systems.
D. Control objectives for EDI systems generally are different from the objectives for other information systems.
A. Preventive controls generally are more important than detective controls in EDI systems.
Preventive controls are more important than detective controls because the benefits typically outweigh the costs. In electronic processing, once a transaction is accepted, there is often little opportunity to apply detective controls. Thus, it is important to prevent errors or frauds before they happen.
The description of a data attribute reads, “This forecast is prepared with the aid of a financial expert.” To which of the following elements regarding the completeness and accuracy criterion provided by the Assurance Services Executive Committee (ASEC) to define a dataset does the above statement relate?
A. Accuracy, correctness, or precision.
B. Nature of the data element.
C. Source of data.
D. Uncertainty.
D. Uncertainty.
The uncertainty or confidence interval refers to the potential deviation of an estimate and the person determining the estimate. The statement suggests both the fact of an estimate (forecast) and the person determining the estimate (with the aid of a financial expert).
After reviewing the end-user computing (EUC) policy of an organization, an internal auditor audits the actuarial function and notices that some minimum control requirements are missing. Which of the following is a risk of using potentially incorrect end-user developed files?
A. Management is unable to respond to competitive pressures quickly.
B. Management receives limited information for decision making due to a lack of flexibility in EUC files.
C. Management continues to incur additional cost because it takes more hours to do the tasks using EUC.
D. Management places the same degree of reliance on the files as they do on files generated from mainframe systems.
D. Management places the same degree of reliance on the files as they do on files generated from mainframe systems.
End-user developed applications may not be subject to an independent outside review by systems analysts and are not created in the context of a formal development methodology. These applications may lack appropriate standards, controls, quality assurance procedures, and documentation. A risk of end-user applications is that management may rely on them as much as traditional applications.
A local area network (LAN) is best described as a(n)
A. Method to offer specialized software, hardware, and data-handling techniques that improve effectiveness and reduce costs.
B. System to allow computer users to meet and share ideas and information.
C. Computer system that connects computers of all sizes, workstations, terminals, and other devices within a limited proximity.
D. Electronic library containing millions of items of data that can be reviewed, retrieved, and analyzed.
C. Computer system that connects computers of all sizes, workstations, terminals, and other devices within a limited proximity.
A LAN is a local distributed computer system, often housed within a single building. Computers, communication devices, and other equipment are linked by cable. Special software facilitates efficient data communication among the hardware devices.
A threat to an information system with a total potential dollar loss impact of $7 million has been discovered. The risk of loss to the identified threat is currently 10%. The following four proposed controls are under consideration to mitigate the risk of loss:
Based on a cost-benefit analysis, which control provides the greatest net benefit?
A. Control Y
B. Control Z
C. Control X
D. Control W
A. Control Y
One of the data definition criteria identified by the Assurance Services Executive Committee (ASEC) is that the description identifies information that has not been included in the data set but is necessary for understanding the data. Which of the following is not an example of this criterion?
A. A description of the grading scale used by a gemstone company.
B. The regression model used when only the independent variable is presented.
C. The formula used to convert a measurement to different scales.
D. The analyst report from which the data are retrieved.
D. The analyst report from which the data are retrieved.
The source of the data is included in the data description to help users understand where and how the data are collected and how they are transformed.
Cryptocurrency transactions are recorded on a(n)
A. General ledger
B. Distributed ledger
C. Private blockchain ledger
D. Encryption ledger
B. Distributed ledger
Blockchain ledgers are encrypted, public, and shared among participants.
Which of the following is considered an application input control?
A. Run control total
B. Exception report
C. Report distribution log
D. Edit check
D. Edit check
An edit (field) check is an application input control that prevents invalid characters from being accepted. Some data elements can only contain certain characters, and any transaction that attempts to use an invalid character is rejected.
The most accurate statement regarding the differences between LANs and WANs is?
A. LANs experience more congestion than WANs.
B. WANs are more difficult to secure than LANs.
C. Organizations that use WANs will incur lower setup costs than those that use LANs.
D. WANs are easier to maintain than LANs.
B. WANs are more difficult to secure than LANs.
WANs consist of a conglomerate of LANs over widely separated locations, making the transmission of information more vulnerable to information interception and other security risks.
An online data entry program is used for original entry of vendor invoices. A batch check-writing program occasionally prepares a check for a vendor not yet included in the vendor file. Checks for such vendors contain nonsense characters in the payee field. The most effective programmed control to prevent this kind of error is to perform
A. A batch control total check on vendor payments.
B. A completeness test on fields in the check-writing program.
C. A record lookup for vendors during data entry.
D. A verification of vendors in the check-writing program.
C. A record lookup for vendors during data entry.
Verifying valid vendors at the point of entry is the most cost-effective means of preventing incorrect data from entering the system.
A distributed processing environment is most beneficial in which of the following situations?
A. Large volumes of data are generated at many locations and fast access is required.
B. Large volumes of data are generated centrally and fast access is not required.
C. Small volumes of data are generated centrally, fast access is required, and summaries are needed monthly at many locations.
D. Small volumes of data are generated at many locations, fast access is required, and summaries of the data are needed promptly at a central site.
A. Large volumes of data are generated at many locations and fast access is required.
Distributed processing involves decentralizing processing tasks and data storage and assigning these functions to multiple computers, often in separate locations. Therefore, a situation in which large volumes of data are generated at many locations, with fast access being a necessity, would be benefited by a distributed processing environment.
In a traditional ERP system, the receipt of a customer order may result in:
I. Customer tracking of the order’s progress
II. Automatic replenishment of inventory by a supplier
III. Hiring or reassigning of employees
IV. Automatic adjustment of output schedules
A. I and III only.
B. I, II, and IV only.
C. I, II, III, and IV.
D. III and IV only.
D. III and IV only.
The traditional ERP system is one in which subsystems share data and coordinate their activities. Thus, if sales receives an order, it can quickly verify that inventory is sufficient to notify shipping to process the order. Otherwise, production is notified to manufacture more of the product, with a consequent automatic adjustment of output schedules. If materials are inadequate for this purpose, the system will issue a purchase order. If more labor is needed, human resources will be instructed to reassign or hire employees. However, the subsystems in a traditional ERP system are internal to the organization. Hence, they are often called back-office functions. The information produced is principally (but not exclusively) intended for internal use by the organization’s managers.
The current generation of ERP software (ERP II) has added front-office functions. Consequently, ERP II (but not traditional ERP) is capable of customer tracking of the order’s progress and automatic replenishment of inventory by a supplier.
Which of the following statements regarding decision support systems is generally true?
A. Decision support systems facilitate solving relatively unstructured problems.
B. Decision support systems are usually developed most successfully by using a system development life cycle approach.
C. A decision support system should be designed to provide specific answers and a predefined sequence of analysis.
D. A decision support system best supports very structured applications.
A. Decision support systems facilitate solving relatively unstructured problems.
The decision support system (DSS) assists a decision maker by allowing him or her to access data and to test different solutions to the problem. This system only supplies support and should not take the place of the decision maker’s insights and judgment.
