Day 22 Flashcards
True or False: Internal Control - Integrated Framework define rules that must be followed throughout the organization
False
The Integrated Framework is built on PRINCIPLES not rules
MCQ-00372
Principles associated with the Risk Assessment
SAFR - SFRA
- Specify objectives
- Identify and Analyze risk
- Consider potential fraud
- Identify and Assess changes
MCQ-00392
Policy and procedure deployment falls under which Internal Control principle?
Existing Control Activities
MCQ-00502
The COSO Cube illustrates what?
Categories of objectives, internal control components, and entity organizational levels
MCQ-00373
What FS disclosures are required by Title IV of Sarbanes-Oxley ?
- Reconciliations of pro forma FS with GAAP basis FS
- Related party relationships
- The usage of Special Purpose Entities (SPEs)
- All MATERIAL correcting AJEs made by external Auditors
MCQ-00241
Ensure that external Auditors are aware of significant internal control issues - what principle?
Info and Comm
MCQ-00431
A company’s performance guidelines sets a lower limit of 3% unfavorable material usage variance - what ERM principle?
ERM = GO PRO
Strategy and Objective Setting
SOAR
MCQ-15782
Cost Benefit Analysis
Amount of Loss × (Risk of Loss Identified % – Risk of Loss with new Control) = Benefit
Benefit − Cost of Control = NET BENEFIT
MCQ-14816
Define: Program Modification Controls
Are controls over the modification of programs being used in production applications.
- Include both controls that attempt to prevent changes by unauthorized users & Track program changes *exact record of what program was running during production
- Program change control software includes a Software Change Mgmt Tool & a Change Request Tracking Tool
MCQ-05185
True or False: International Joint Ventures are setup to maximize comparative advantages of one or both of the participating firm’s
True
MCQ-07846
What is Top Mgmt’s most important role(s) in business process design?
- Providing support and encouragement for IT development projects
- Aligning Information Systems with corporate strategies
Note: Bc business process design often takes time away from other duties, Mgmt *MUST ensure that team members are given adequate time and support*
MCQ-09140
What responsibilities do the following groups have in regards to IT Governance Policies?
- Board of Directors
- Executives
- Middle Mgmt
- End Users
- Set the policies
- Ensures structure in place/executed efficiently
- Carry out IT Governance policies
- Follow the policies/procedures
MCQ-14518
Define: Veracity with regards to Big Data dimensions
Veracity - Represents the reliability, quality, or integrity of the data
MCQ-14522
Define: ETL regarding Big Data
Extract, Transform, and Load
Process in which data is captured from it’s source and manipulated in a way that allows it to be transferred to a format readable by another system so that it can be used or analyzed
MCQ-14784
Define: Descriptive Analytics
Indicate what happened
EX: Avg. sales by region
MCQ-14523
Define: Prescriptive Analytics
Analytics reveal HOW to achieve a desired event
MCQ-14523
Define: Diagnostic Analytics
Analytics reveal WHY an event happened
MCQ-14523
Define: Predictive Analytics
Help forecast future data points
MCQ-14523
What are the responsibilities of a Systems Analyst?
- Learning a purchased software package
- Would integrate new software into any existing software
- Responsible for training staff
- Responsible for adapting / integrating the newly purchased system into the business
*Note: Referred to as a “SYSTEMS INTEGRATOR”
MCQ-05037
What are the responsibilities of a Network Administrator?
- Manage the Local Area Networks (communications)
- Would NOT be responsible for leading the integration of new software
MCQ-05037
Define: Program-Level Policy
- Used for creating a Mgmt-Sponsored computer security program
- Program-Level Policy = at the Highest level
- May need information security and may delegate the creation and mgmt of the program
- This is the MISSION STMT for the IT Security Program
MCQ-14773
XYZ Company adopted new controls in its enterprise system. Within AP, the system is designed to compare individual transactions with previously recorded transactions to match certain designated fields. This is an example of what type of control?
Processing Control - ensure that processing data is ACCURATE and COMPLETE
MCQ-14775
What are the responsibilities of a Computer Operator?
- Responsible for Scheduling and running processing jobs
MCQ-14776
