IFTC

Question 1

Which of the following is not true? Relational databases

a. Are maintained on direct access devices.
b. Store data in table form.
c. Are flexible and useful for unplanned, ad hoc queries.
d. Use trees to store data in hierarchical structure.

Answer 1

Use trees to store data in hierarchical structure.

Question 2

Graphical notations that show the flow and transformation of data within system or business area are called

Answer 2

Data flow diagrams.

Question 3

Which of the following items would be most critical to include in systems specification document for financial report?

a. Cost-benefit analysis.
b. Training requirements.
c. Data elements needed.
d. Communication change management considerations.

Answer 3

Data elements needed.

Question 4

What type of computerized data processing system would be most appropriate for a company that is opening new retail location?

Answer 4

Real-time processing.

Question 5

First Federal has an on-line real-time system, with terminals installed in all of its branches. This system will not accept a customer’s cash withdrawal instructions in excess of $1,000 without the use of a “terminal audit key.” After the transaction is authorized by supervisor, the bank teller then pacesses the transaction with the audit key. This control can be strengthened by

Answer 5

Online recording of the transaction on an audit override sheet.

Question 6

Companies now can use electronic transfers to conduct regular business transactions. Which of the following terms best describes system where an agreement is made between two or more parties to electronically transfer purchase orders, sales orders, invoices, and/or other financial documents?

a. Electronic funds transfer (EFT).
b. Electronic data processing (EDP).
c. Electronic data interchange (EDI).
d. Electronic mail (E-mail).

Answer 6

Electronic data interchange (EDI).

Question 7

In an accounting information system, which of the following types of computer files most likely would be master file?

a. Cash receipts.
b. Cash disbursements.
c. Inventory subsidiary.
d. Payroll transactions.

Answer 7

Inventory subsidiary.

Question 8

The primary objective of security software is to

Answer 8

Control access to information system resources.

Question 9

A digital signature is used primarily to determine that a message is

Answer 9

Unaltered in transmission.

Question 10

A system in which the end user is responsible for the development and execution of the computer application that he or she uses is referred to as

Answer 10

End-user computing.

Question 11

An entity doing business on the Internet most likely could use any of the following methods to prevent unauthorized intruders from accessing proprietary information except:

a. Password management.
b. Digital certificates.
c. Data encryption.
d. Batch processing.

Answer 11

Batch processing.

Question 12

Parity checks, read-after-write checks, and duplicate circuitry are computer controls that are designed to detect

Answer 12

Erroneous internal handling of data.

Question 13

An overall description of database, including the names of data elements, their characteristics, and their relationship to one another, would be defined by using a

Answer 13

Data definition language.

Question 14

The use of header label in conjunction with magnetic tape is most likely to prevent errors by the

Answer 14

Computer operator.

Question 15

A brokerage firm has changed program so as to permit higher transaction volumes. After paper testing of the change, the revised programs were authorized and copied to the production library. This practice is an example of

Answer 15

Change control.

Question 16

Bacchus, Inc. is large multinational corporation with various business units around the world. After fire destroyed the corporate headquarters and largest manufacturing site, plans for which of the following would help Bacchus ensure timely recovery?

a. Backup power.
b. Daily backup.
c. Business continuity.
d. Network security.

Answer 16

Business continuity.

Question 17

When designing the physical layout of a data processing center, which of the following would be least likely to be necessary control?

a. Inclusions of an adequate power supply system with surge protection.
b. Consideration of risks related to other uses of electricity in the area.
c. Design of controls to restrict access.
d. Adequate physical layout space for the operating system.

Answer 17

Adequate physical layout space for the operating system.

Question 18

Which of the following statements best characterizes the function of physical access control?

a. Provides authentication of users attempting to log into the system.
b. Minimizes the risk of incurring power or hardware failure.
c. Protects systems from the transmission of Trojan horses.
d. Separates unauthorized individuals from computer resources.

Answer 18

Separates unauthorized individuals from computer resources.

Question 19

A fast-growing service company is developing its information technology internally. What is the first step in the company’s systems development life cycle?

Answer 19

Analysis.

Question 20

Which of the following most likely represents a significant deficiency in the internal control?

a. The control clerk establishes control over data received by the information systems departments and reconciles totals after processing.
b. The systems pagrammer designs systems for computerized applications and maintains output controls.
c. The accounts payable clerk prepares data for computer processing and enters the data into the computer.
d. The systems analyst reviews applications of data processing and maintains systems documentation.

Answer 20

The systems pagrammer designs systems for computerized applications and maintains output controls.

Question 21

What is a major disadvantage to using private key to encrypt data?

Answer 21

Both sender and receiver must have the private key before this encryption method will work.

Question 22

Which of the following statements is correct regarding the Internet as commercially viable network?

a. Organizations must use firewalls if they wish to maintain security over internal data.
b. Companies must apply to the Internet to gain permission to create homepage to engage in electronic commerce.
c. Companies that wish to engage in electronic commerce on the Internet must meet required security standards established by the coalition of Internet providers.
d. The Internet is the only feasible method to conduct business electronically.

Answer 22

Organizations must use firewalls if they wish to maintain security over internal data.

Question 23

Which of the following information technology (IT) departmental responsibilities should be delegated to separate individuals?

a. Data entry and antivirus management.
b. Data entry and quality assurance.
c. Network maintenance and wireless access.
d. Data entry and application programming.

Answer 23

Data entry and application programming.

Question 24

To reduce security exposure when transmitting proprietary data over communication lines, a company should use

Answer 24

Cryptographic devices.

Question 25

Which of the following is usually benefit of using electronic funds transfer for international cash transactions?

a. Off-site storage of foreign soun:e documents.
b. Reduction in the frequency of data entry errors.
c. Improvement in the audit trail for cash transactions.
d. Creation of multilingual disaster recovery

Answer 25

Reduction in the frequency of data entry errors

Question 26

Which of the following is not one of the five principles of COBIT S?

a. Control objectives.
b. Covering the enterprise end-to-end.
c. Separating governance from management.
d. Meeting stakeholder needs.

Answer 26

Control objectives.

Question 27

The program flowcharting symbol representing a decision is a

Answer 27

Diamond.

Question 28

When considering disaster recovery, what type of backup facility involves an agreement between organizations to aid each other in the event of disaster?

Answer 28

Reciprocal agreement.

Question 29

Which of the following controls would assist in detecting an error when the data input clerk records sales invoice as $12.99 when the actual amount is $122.99?

a. Limit check.
b. Echo check.
c. Batch control totals.
d. Sign check.

Answer 29

Batch control totals.

Question 30

A data warehouse in an example of

Answer 30

On-line analytical processing.

Question 31

The machine language for specific computer

Answer 31

Is determined by the engineers who designed the computer.

Question 32

The machine-language program that results when symbolic-language program is translated is called

Answer 32

Object program.

Question 33

Which of the following internal control procedures would prevent an employee from being paid an inappropriate hourly wage?

a. Having the supervisor of the data entry clerk verify that each employee’s hours worked are correctly entered into the system.
b. Limited access to employee master files to authorized employees in the personnel department.
c. Giving payroll data entry clerks the ability to change any suspicious hourly pay rates to a reasonable rate.
d. Using real-time posting of payroll so there can be no after-the-fact data manipulation of the payroll register.

Answer 33

Limited access to employee master files to authorized employees in the personnel department.

Question 34

Which of the following is not a characteristic of a batch processed computer system?

a. The posting of a transaction, as it occurs, to several files, without intermediate printouts.
b. The collection of like transactions which are sorted and processed sequentially against master file.
c. The production of numerous printouts.
d. Keypunching of transactions, followed by machine processing.

Answer 34

The posting of a transaction, as it occurs, to several files, without intermediate printouts.

Question 35

One of the major problems in computer system is that incompatible functions may be performed by the same individual. One compensating control for this is use of

Answer 35

A computer log.

Question 36

Which of the following is considered to be server in local area network (LAN)?

a. A device that stores pagram and data files for users of the LAN.
b. The cabling that physically interconnects the nodes of the LAN.
c. A device that connects the LAN to other networks.
d. A workstation that is dedicated to single user on the LAN.

Answer 36

A device that stores pagram and data files for users of the LAN.

Question 37

The most appropriate type of network for company that needs its network to function inexpensively in widely separated geographical areas is

Answer 37

Wide area network (WAN).

Question 38

Which of the following activities would most likely detect computer-related fraud?

a. Conducting fraud-awareness training.
b. Performing validity checks.
c. Reviewing the systems-access log.
d. Using data encryption.

Answer 38

Reviewing the systems-access log.

Question 39

Which of the following best describes hot site?

a. Location that is considered too close to disaster area.
b. Location where company can install data processing equipment on short notice.
c. Location within the company that is most vulnerable to disaster.
d. Location that is equipped with redundant hardware and software configuration.

Answer 39

Location that is equipped with redundant hardware and software configuration.

Question 40

With the growth of microcomputers, some organizations are allowing end-users to develop their own applications. One of the organizational risks of this policy is

Answer 40

Reduced control of data.

Question 41

In business information systems, the term “stakeholder” refers to which of the following parties?

a. Information technology personnel responsible for creating the documents and data stored on the computers or networks.
b. The management team responsible for the security of the documents and data stored on the computers or networks.
c. Authorized users who are granted access rights to the documents and data stored on the computers or networks.
d. Anyone in the organization who has role in creating or using the documents and data stored on the computers or networks.

Answer 41

Anyone in the organization who has role in creating or using the documents and data stored on the computers or networks.

Question 42

Employee numbers have all numeric characters. To prevent the input of alphabetic characters, what technique should be used?

a. Field (format) check.
b. Validity check.
c. Check digit.
d. Optical character recognition (OCR).

Answer 42

Field (format) check.

Question 43

An auditor was examining a client’s network and discovered that the users did not have any password protection. Which of the following would be the best example of the type of network password the users should have?

Answer 43

tR34ju78

Question 44

Which of the following artificial intelligence information systems cannot learn from experience?

a. Rule-based expert systems.
b. Neural networks.
c. Intelligent agents.
d. Case-based reasoning systems.

Answer 44

Rule-based expert systems.

Question 45

Automated equipment controls in computer processing system are designed to detect errors arising from

Answer 45

Operation of the computer processing equipment.

Question 46

A company has a significant presence and self-hosts its Web site. the following strategies?

a. Store records off-site.
b. Establish off-site mirrored Web server.
c. Purchase and implement RAID technology.
d. Backup the server database daily.

Answer 46

Establish off-site mirrored Web server.

Question 47

More than one file may be stored on a single magnetic disc. Several programs may be in the core storage unit simultaneously. In both cases it is important to prevent the mixing of data. One way to do this is to use

Answer 47

Boundary protection.

Question 48

A distributed processing environment would be most beneficial in which of the following situations?

a. Small volumes of data are generated centrally, fast access is required, and summaries are needed monthly at many locations.
b. 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.
c. Large volumes of data are generated centrally and fast access is not required.
d. Large volumes of data are generated at many locations and fast access is required.

Answer 48

Large volumes of data are generated at many locations and fast access is required.

Question 49

Any assessment of the operational capabilities of a computer system must consider downtime. Even in fully protected system, downtime will exist because of

Answer 49

Unscheduled maintenance.

Question 50

In a client/server environment, the “client” is most likely to be the

Answer 50

Computers of various users.

Question 51

Compared to batch processing, real-time processing has which of the following advantages?

a. Ease of auditing.
b. Efficiency of processing.
c. Timeliness of information.
d. Ease of implementation.

Answer 51

Timeliness of information.

Question 52

A client that recently installed a new accounts payable system assigned employees user identification code (UIC) and separate password. Each UIC is person’s name, and the individual’s password is the same as the UIC. Users are not required to change their passwords at initial log-in nor do passwords ever expire. Which of the following statements does not reflect limitation of the client’s computer-access control?

a. Employees can easily guess fellow employees’ passwords.
b. Employees can circumvent procedures to segregate duties.
c. Employees are not required to change passwords.
d. Employees are not required to take regular vacations.

Answer 52

Employees are not required to take regular vacations.

Question 53

An employee mistakenly enters April 31 in the date field. Which of the following programmed edit checks offers the best solution for detecting this error?

a. Mathematical accuracy.
b. Online prompting.
c. Preformatted screen.
d. Reasonableness.

Answer 53

Reasonableness.

Question 54

Which of the following is an advantage of using value-added network for EDI transactions?

a. Decrease in cost of EDI.
b. Ability to deal with differing data protocols.
c. Direct communication between trading partners.
d. Increase in data redundancy.

Answer 54

Ability to deal with differing data protocols.

Question 55

Which of the following allows customers to pay for goods or services from Web site while maintaining financial privacy?

a. Site draft.
b. Credit card.
c. Electronic check.
d. E-cash.

Answer 55

E-cash.

Question 56

Which of the following is key difference in controls when changing from manual system to computer system?

a. Methodologies for implementing controls change.
b. Control objectives are more difficult to achieve.
c. Internal control objectives differ.
d. Internal control principles change.

Answer 56

Methodologies for implementing controls change.

Question 57

Which of the following transaction processing modes provides the most accurate and complete information for decision making?

a. Application.
b. Online.
c. Distributed.
d. Batch.

Answer 57

Online.

Question 58

Which of the following is an advantage of computer-based system for transaction processing over manual system? A computer-based system

a. Eliminates the need to reconcile control accounts and subsidiary ledgers.
b. Will produce a more accurate set of financial statements.
c. Will be more efficient at producing financial statements.
d. Does not require as stringent a set of internal controls.

Answer 58

Will be more efficient at producing financial statements.

Question 59

Which of the following types of control plans is particular to specific pacess or subsystem, rather than related to the timing of its occurrence?

a. Corrective.
b. Preventive.
c. Detective.
d. Application.

Answer 59

Application.

Question 60

Which of the following is computer test made to ascertain whether given characteristic belongs to the group?

a. Parity check.
b. Echo check.
c. Limit check.
d. Validity check.

Answer 60

Validity check.

Question 61

An auditor has paper memorandum that needs to be made into computer file so that text from the memorandum can be cut and pasted into an audit report. In addition to scanner, what software is needed to accomplish this task?

Answer 61

Optical character recognition (OCR).

Question 62

A customer’s order was never filled because an order entry clerk transposed the customer identification number while entering the sales transaction into the system. Which of the following controls would most likely have detected the tran»osition?

a. Limit test.
b. Completeness test.
c. Validity check.
d. Sequence test.

Answer 62

Validity check.

Question 63

During the annual audit, it was learned from an interview with the controller that the accounting system was programmed to use batch processing method and detailed type. This would mean that individual transactions were

Answer 63

Assigned to groups before posting, and each transaction had its own line entry in the appropriate ledger.

Question 64

End-user computing is an example of which of the following

a. Decentralized processing.
b. Client/server processing.
c. Expert systems.
d. A distributed system.

Answer 64

Decentralized processing.

Question 65

A bank wants to reject erroneous checking account numbers to avoid invalid input. Management of the bank was told that there is a method that involves adding another number at the end of the account numbers end subjecting the other numbers to an algorithm to compare with the extra numbers. What technique is this?

Answer 65

Check digit.

Question 66

To prevent interrupted information systems operation, which of the following controls are typically included in an organization’s disaster recovery plan?

a. Backup and downtime controls.
b. Disaster recovery and data processing controls.
c. Data input and downtime controls.
d. Backup and data transmission controls.

Answer 66

Backup and downtime controls.

Question 67

An organization relied heavily on e-commerce for its transactions. Evidence of the organization’s security awareness manual would be an example of which of the following types of controls?

Answer 67

Preventative.

Question 68

An accounts payable clerk is accused of making unauthorized changes to previous payments to vendor. Proof could be uncovered in which of the following places?

a. Validated data file.
b. Transaction logs
c. Error reports
d. Error files

Answer 68

Transaction logs.

Question 69

Which of the following configurations of elements represents the most complete disaster recovery plan?

a. Vendor contract for alternate processing site, backup procedures, names of persons on the disaster recovery team.
b. Off-site storage procedures, identification of critical applications, test of the plan.
c. Vendor contract for alternate processing site, names of persons on the disaster recover,’ team, off-site storage procedures.
d. Alternate processing site, backup and off-site storage procedures, identification of critical applications, test of the plan.

Answer 69

Alternate processing site, backup and off-site storage procedures, identification of critical applications, test of the plan.

Question 70

A controller is developing a disaster recovery plan for a corporation’s computer systems. In the event of disaster that makes the company’s facilities unusable, the controller has arranged for the use of an alternate location and the delivery of duplicate computer hardware to this alternate location. Which of the following recovery plans would best describe this arrangement?

a. Cold site.
b. Backup site procedures.
c. Hot spare site agreement.
d. Hot site.

Answer 70

Cold site.

Question 71

In a large multinational organization, which of the following job responsibilities should be assigned to the network administrator?

a. Managing remote access.
b. Developing application pagrams.
c. Reviewing security policy.
c. Installing operating system upgrades.

Answer 71

Managing remote access.

Question 72

The ability to add or update documentation items in data dictionaries should be restricted to

Answer 72

Database administrators.

Question 73

Which of the following input controls would prevent an incorrect state abbreviation from being accepted as legitimate data?

a. Digit verification check.
b. Field check.
c. Reasonableness test.
d. Validity check.

Answer 73

Validity check.

Question 74

A procedural control used in the management of computer center to minimize the possibility of data or pagram file destruction through operator error includes

Answer 74

External labels.

Question 75

Which of the following would lessen internal control in a computer processing system?

a. Computer operators have access to operator instructions and detailed pagram listings.
b. The control group is solely resvonsible for the distribution of all computer output.
c. Computer programmers write and debug programs which perform routines designed by the systems analyst.
d. The computer librarian maintains custody of computer pagram instructions and detailed listings.

Answer 75

Computer operators have access to operator instructions and detailed pagram listings.

Question 76

Which of the following statements is true regarding Transmission Control Protocol and Internet Protocol (TCP/IP)?

a. Every TCP/IP-supported transmission is an exchange of funds.
b. The actual physical connections among the various networks are limited to TCP/IP ports.
c. TCP/IP networks are limited to large mainframe computers.
d. Every site connected to TCP/IP network has unique address.

Answer 76

Every site connected to TCP/IP network has unique address.

Question 77

Which of the following is an electronic device that separates or isolates network segment from the main network while maintaining the connection between networks?

a. Firewall.
b. Image browser.
c. Query program.
d. Keyword.

Answer 77

Firewall.

Question 78

Securing client/server systems is a complex task because of all of the following factors except:

a. Concurrent operation of multiple user sessions.
b. The number of access points.
c. The use of relational databases.
d. Widespread data access and update capabilities.

Answer 78

The use of relational databases.

Question 79

One of the benefits of single integrated database information system is

Answer 79

Increased data accessibility.

Question 80

A program that edits a group of source language statements for syntax errors and translates the statements into an object program is a

Answer 80

Compiler.

Question 81

When client’s accounts payable computer system was relocated, the administrator provided support through a dial-up connection to a server. Subsequently, the administrator left the company. No changes were made to the accounts payable system at that time. Which of the following situations represents the greatest security risk?

a. User accounts are not removed upon termination of employees.
b. Management procedures for user accounts are not documented.
c. User passwords are not required to be in alphanumeric format.
d. Security logs are not periodically reviewed for violations.

Answer 81

User accounts are not removed upon termination of employees.

Question 82

An enterprise resouae planning (ERR) system has which of the following advantages over multiple independent functional systems?

a. Increased responsiveness and flexibility while aiding in the decision-making process.
b. Modifications can be made to each module without affecting other modules.
c. Increased amount of data redundancy since more than one module contains the same information.
d. Reduction in costs for implementation and training.

Answer 82

Increased responsiveness and flexibility while aiding in the decision-making process.

Question 83

Compared to online real-time processing, batch processing has which of the following disadvantages?

a. Stored data are current only after the update process.
b. A greater level of control is necessary.
c. Additional computing resources are required.
d. Additional personnel are required.

Answer 83

Stored data are current only after the update process.

Question 84

A manufacturing company that wanted to be able to place material orders more efficiently most likely would utilize which of the following?

a. Electronic data interchange.
b. Electronic check presentment.
c. Automated clearinghouse.
d. Electronic funds transfer.

Answer 84

Electronic data interchange.

Question 85

Because log-on procedures may be cumbersome and tedious, users often store log-on sequences in their personal computers and invoke them when they want to use mainframe facilities. A risk of this practice is that

Answer 85

Anyone with access to the personal computers could log on to the mainframe.

Question 86

Which of the following is usually benefit of transmitting transactions in an electronic data interchange (EDI) environment?

a. Assurance of the thoroughness of transaction data because of standardized controls.
b. Automatic protection of information that has electronically left the entity.
c. Elimination of the need to verify the receipt of goods before making payment.
d. Elimination of the need to continuously update antivirus software.

Answer 86

Assurance of the thoroughness of transaction data because of standardized controls.

Question 87

Which of the following is correct concerning electronic commerce security?

a. The successful use of firewall will help assure the security of firm’s computer systems.
b. Since they cannot use both, companies must decide whether to use an electronic data interchange approach or an approach using the Internet.
c. Companies that wish to use the Internet for electronic commerce must adhere to the Uniform Internet Service Provider Code of Conduct.
d. Use of Web site “home page” instead of encryption leads to greater security in electronic transactions.

Answer 87

The successful use of firewall will help assure the security of firm’s computer systems.

Question 88

Data control language used in relational database is most likely to include commands used to control

Answer 88

Which users have various privileges relating to database.

Question 89

A value-added network (VAN) is a privately owned network that performs which of the following functions?

a. Route data within a company’s multiple networks.
b. Provide services to send marketing data to customers..

c Provide additional accuracy for data transmissions.

d. Route data transactions between trading partners.

Answer 89

Route data transactions between trading partners.

Question 90

Which of the following is the primary advantage of using value-added network (VAN)?

a. It provides increased security for data transmissions.
b. It enables the company to obtain trend information on data transmission.
c. It is more cost effective for the company than transmitting data over the Internet.
d. It provides confidentiality for data transmitted over the Internet.

Answer 90

It provides increased security for data transmissions.

Question 91

Which of the following procedures would enhance the control of a computer operations department?

I. Periodic rotation of operators.

II. Mandatory vacations.

III. Controlled access to the facility.

IV. Segregation of personnel who are responsible for controlling input and output.

Answer 91

I, II, III, IV

Question 92

Which of the following areas of responsibility are normally assigned to systems pagrammer in computer system environment?

a. Data communication hardware and software.
b. Computer operations.
c. Systems analysis and applications programming.
d. Operating systems and compilers.

Answer 92

Operating systems and compilers.

Question 93

Which of the following would provide the most security for sensitive data stored on personal computer?

a. Using an eight-bit encoding scheme for hardware interfaces.
b. Encrypting data files on the computer.
c. Using a conventional file structure scheme.
d. Using secure screen saver program.

Answer 93

Encrypting data files on the computer.

Question 94

SQL is most directly related to

Answer 94

Relational databases.

Question 95

The performance audit report of an information technology department indicated that the department lacked disaster recovery plan. Which of the following steps should management take first to correct this condition?

a. Designate a cold site
b. Prepare a statement of reponsibilities for tasks included in disaster recovery plan.
c. Designate a hot site.
d. Bulletproof the information security architecture.

Answer 95

Prepare a statement of reponsibilities for tasks included in disaster recovery plan.

Question 96

Which of the following is computer pagram that appears to be legitimate but performs an illicit activity when it is run?

a. Redundant verification.
b. Parallel count.
c. Trojan horse.
d. Web crawler.

Answer 96

Trojan horse.

Question 97

Which of the following is primary function of database management system?

a. Financial transactions input.
b. Report customization.
c. Database access authorizations
d. Capability to create and modify the database.

Answer 97

Capability to create and modify the database.

Question 98

The Internet is made up of series of networks which include

Answer 98

Gateways to allow mainframe computers to connect to personal computers.

Question 99

Which of the following risks can be minimized by requiring all employees accessing the information system to use passwords?

a. Firewall vulnerability.
b. Data entry errors.
c. Failure of server duplicating function.
d. Collusion.

Answer 99

Firewall vulnerability.

Question 100

ABC, Inc. assessed overall risks of MIS systems projects on two standard criteria: technology used and design structure. The following systems projects have been assessed on these risk criteria. Which of the following projects holds the highest risk to ABC?

Technology    Structure

a. Current Sketchy
b. New Sketchy
c. Current Well defined
d. New Well defined

Answer 100

New Sketchy

Question 101

Which of the following terms best describes a payroll system?

a. Transaction processing system (TPS).
b. Database management system (DBMS).
c. Decision support system (DSS).
d. Enterprise resouae planning (ERR) system.

Answer 101

Transaction processing system (TPS).

Question 102

When erroneous data are detected by computer pagram controls, such data may be excluded from processing and printed on an error report. The error report should most probably be reviewed and followed up by the

Answer 102

Control group.

Question 103

Which of the following is model for evaluating the sophistication of IT processes?

a. Maturity models.
b. Performance models.
c. Control models.
d. Hierarchy models.

Answer 103

Maturity models.

Question 104

Which of the following represents the procedure managers use to identify whether the company has information that unauthorized individuals want, how these individuals could obtain the information, the value of the information, and the probability of unauthorized access occurring?

a.
Risk assessment.

b. Systems assessment.
c. Disaster recovery plan assessment.
d. Test of controls.

Answer 104

Risk assessment.

Question 105

A validation check used to determine if quantity ordered field contains only numbers is an example of an

Answer 105

Input control.

Question 106

A computer input control is designed to ensure that

Answer 106

Data received for processing are properly authorized and converted to machine readable form.

Question 107

Which of the following is considered an application input control?

a. Report distribution log.
b. Exception report.
c. Edit check.
d. Run control total.

Answer 107

Edit check.

Question 108

Which of the following constitutes weakness in the internal control of computer system?

a. Machine operators do not have access to the complete systems manual.
b. One generation of backup files is stored in an off-premises location.
c. Machine operators distribute erar messages to the control group.
d. Machine operators are supervised by the programmer.

Answer 108

Machine operators are supervised by the programmer.

Question 109

Which of the following terms refers to site that has been identified and maintained by the organization as data processing disaster recovery site but has not been stocked with equipment?

a. Warm.
b. Hot
c. Flying start.
d. Cold.

Answer 109

Cold.

Question 110

When used in an information technology context, EDI is

Answer 110

Electronic Data Interchange.

Question 111

Which of the following structures refers to the collection of data for all vendors in a relational data base?

a. Record.
b. Byte.
c. Field.
d. File

Answer 111

File

Question 112

An information technology director collected the names and locations of key vendors, current hardware configuration, names of team members, and an alternative processing location. What is the director most likely preparing?

a. Data restoration plan.
b. System hardware policy.
c. Disaster recovery plan.
d. System security policy.

Answer 112

Disaster recovery plan.

Question 113

To maintain effective segregation of duties within the information technology function, an application programmer should have which of the following responsibilities?

a. Code approved changes to a payroll program.
b. Maintain custody of the billing pagram code and its documentation.
c. Modify and adapt operating system software.
d. Correct detected data entry errors for the cash disbursement system.

Answer 113

Code approved changes to a payroll program.

Question 114

In which of the following phases of computer system development would training occur?

a. Analysis phase.
b. Design phase.
c. Planning phase.
d. Implementation phase.

Answer 114

Implementation phase.

Question 115

Most client/server applications operate on three-tiered architecture consisting of which of the following layers?

a. Desktop client, application, and database.
b. Desktop client, software, and hardware.
c. Desktop server, software, and hardware.
d. Desktop server, application, and database.

Answer 115

Desktop client, application, and database.

Question 116

In a daily computer run to update checking account balances and print out basic details on any customer’s account that was overdrawn, the overdrawn account of the computer pagrammer was never printed. Which of the following control procedures would have been most effective in detecting this fraud?

a. Periodic recompiling of programs from documented source files, and comparison with programs currently in use.
b. A program check for valid customer code.
c. Use of the test-data approach by the author in testing the client’s program and verification of the subsidiary file.
d. Use of running control total for the master file of checking account balances and comparison with the printout.

Answer 116

Periodic recompiling of programs from documented source files, and comparison with programs currently in use.

Question 117

What should be examined to determine if an information system is operating according to prescribed procedures?

Answer 117

System control.

Question 118

What is the computer process called when data processing is performed concurrently with particular activity and the results are available soon enough to influence the particular course of action being taken or the decision being made?

Answer 118

Real-time processing.

Question 119

There are several kinds of hardware and software for connecting devices within a network and for connecting different networks to each other. The kind of connection often used to connect dissimilar networks is

Answer 119

Gateway.

Question 120

Today organizations are using microcomputers for data presentation because microcomputer use, compared to mainframe use, is more

Answer 120

Cost effective.

Question 121

An organization’s computer help desk function is usually responsibility of the

Answer 121

Computer operations unit.

Question 122

Which of the following employees normally would be assigned the operating responsibility for designing computer installation, including flowcharts of data processing routines?

a. Data processing manager.
b. Computer programmer.
c. Systems analyst.
d. Internal auditor.

Answer 122

Systems analyst.

Question 123

Control Objectives for Information and Related Technology (COBIT) provides framework for

Answer 123

IT governance and management of enterprise IT.

Question 124

Which of the following is critical success factor in data mining large data store?

a. Pattern recognition.
b. Accurate universal resource locator (URL).
c. Image processing systems.
d. Effective search engines.

Answer 124

Pattern recognition.

Question 125

In updating computerized accounts receivable file, which one of the following would be used as batch control to verify the accuracy of the total credit posting?

a. The sum of the cash deposits plus the discounts less the sales returns.
b. The sum of the cash deposits plus the discounts taken by customers.
c. The sum of the cash deposits less the discounts taken by customers.
d. The sum of the cash deposits.

Answer 125

The sum of the cash deposits plus the discounts taken by customers.

Question 126

Encryption protection is least likely to be used in which of the following situations?

a. When financial data are sent over dedicated leased lines.
b. When confidential data are sent by satellite transmission.
c. When wire transfers are made between banks.
d. When transactions are transmitted over local area networks.

Answer 126

When transactions are transmitted over local area networks.

Question 127

Which of the following procedures should be included in the disaster recovery plan for an Information Technology department?

a. Replacement of personal computers for user departments.
b. Physical security of warehouse facilities.
c. Identification of critical applications.
d. Cross-training of operating personnel.

Answer 127

Identification of critical applications.

Question 128

Which of the following is least likely to be considered an advantage of a value-added network?

a. Increased security.
b. Partners do not have to establish numeaus point-to-point connections.
c. Reduced cost.
d. Reduce communication and data protocol problems.

Answer 128

Reduced cost.

Question 129

If a control total were to be computed on each of the following data items, which would best be identified as hash total for payroll application?

a. Total debits and total credits.
b. Hours worked.
c. Department numbers.
d. Net pay.

Answer 129

Department numbers.

Question 130

A control feature in an electronic data processing system requires the central processing unit (CPU) to send signals to the printer to activate the print mechanism for each character. The print mechanism, just prior to printing, sends a signal back to the CPU verifying that the proper print position has been activated. This type of hardware control is referred to as

Answer 130

Echo control.

Question 131

Which of the following best defines electronic data interchange (EDI) transactions?

a. Products sold on central Web servers can be accessed by users anytime.
b. Electronic business information is exchanged between two or more businesses.
c. Customers’ funds-related transactions are electronically transmitted and processed.
d. Entered sales data are electronically transmitted via a centralized network to central processor.

Answer 131

Electronic business information is exchanged between two or more businesses.

Question 132

Controls in the information technology area are classified into the preventive, detective, and corrective categories. Which of the following is a preventive control?

a. Contingency planning
b. Hash total
c. Access control software
d. Echo check

Answer 132

Access control software.

Question 133

Management of a financial services company is considering strategic decision concerning the expansion of its existing local area network (LAN) to enhance the firm’s customer service function. Which of the following aspects of the expanded system is the least significant strategic issue for management?

a. How the expanded system would support daily business operations.
b. How indicators can be developed to measure how well the expanded system achieves its business objectives.
c. How the expanded system can contribute to the firm’s long-range business plan.
d. How the expanded system will contribute to the reduction of operating costs.

Answer 133

How the expanded system will contribute to the reduction of operating costs.

Question 134

Which of the following statements is correct concerning the security of messages in an electronic data interchange (EDI) system?

a. Removable drives that can be locked up at night provide adequate security when the confidentiality of data is the primary risk.
b. Encryption performed by a physically secure hardware device is more secure than encryption performed by software.
c. Security at the transaction phase in EDI systems is not necessary because problems at that level will be identified by the service provider.
d. Message authentication in EDI systems performs the same function as segregation of duties in other information systems.

Answer 134

Encryption performed by a physically secure hardware device is more secure than encryption performed by software.

Question 135

End-user computing is most likely to occur on which of the following types of computers?

a. Minicomputers.
b. Mainframe.
c. Personal computers.
d. Personal digital devices.

Answer 135

Personal computers.

Question 136

An input clerk enters person’s employee number. The computer responds with a message that reads “Employee number that entered is NOT assigned to an active employee. Please reenter”. What technique is the computer using?

Answer 136

Validity check.

Question 137

In which of the following locations should copy of the accounting system data backup of year-end information be stored?

a. Data backup server in the network Tom.
b. Secure off-site location.
c. Fireproof cabinet in the data network room.
d. Locked file cabinet in the accounting department.

Answer 137

Secure off-site location.

Question 138

The computer operating system performs scheduling, resource allocation, and data retrieval functions based on a set of instructions provided by the

Answer 138

Job control language.