ISC AICPA Blueprint #1 Flashcards
A disaster recovery plan is of utmost importance for the survival of an organization. Which of the following is not a step in designing such a plan?
A
Identifying critical mission applications and data
B
Assessing the risks
C
Ensuring physical security of inventory in the event of a disaster
D
Assigning responsibilities to personnel
The correct answer is (C)
Disaster recovery (DR) is the restoration of data and business function after a loss. Disaster recovery, a part of business continuity planning (BCP), is a response to a catastrophe of an entire geographic area, such as natural events like floods, earthquakes, and fire as well as intentional acts such as terrorism and forced power outages.
The crucial steps involved in DR are:
Assessing the risks that are posed to the entity
Identifying mission-critical departments and functions
Having a plan to handle the mission-critical units
Assigning responsibilities to individuals in the event of a disaster
Testing the plan
Securing the inventory is not an expressed step in the DRP process. However, if inventory is identified as one of the mission-critical components, its security would be ensured.
Engaging in traditional electronic data interchange (EDI) provides which of the following benefits?
A
Enhanced audit trails
B
Guaranteed payments from customers
C
Added flexibility to entice new partners
D
Reduced likelihood of out-of-stock inventory
D
Traditional Electronic Data Interchange (EDI) systems enable the real-time exchange of information between trading partners, such as inventory levels, purchase orders, and delivery schedules. This timely communication helps businesses keep track of inventory, allowing them to replenish stock efficiently and reduce the likelihood of out-of-stock situations. By integrating supply chain processes, EDI streamlines inventory management, making it possible to respond quickly to demand changes and avoid stockouts.
Enhanced audit trails is incorrect because while EDI transactions can improve record-keeping, traditional EDI systems are not specifically designed to enhance audit trails. EDI focuses more on improving transaction speed and accuracy rather than providing detailed tracking features required for robust audit trails.
Guaranteed payments from customers is incorrect because EDI does not ensure payment. Although EDI facilitates transaction processing, payment terms, and guarantees are governed by contractual agreements and credit policies rather than the data exchange mechanism itself.
Added flexibility to entice new partners is incorrect because traditional EDI can be complex and rigid, often requiring partners to use compatible systems and adhere to specific data formats. This rigidity can make EDI less flexible and challenging for onboarding new partners compared to more modern, adaptable systems.
Which of the following statements about multiprocessing and multiprogramming are false?
A
Multiprocessing allows multiple programs to execute simultaneously.
B
Multiprocessing allows a central memory to be shared by multiple programs.
C
Multiprogramming allows multiple programs to execute simultaneously.
D
Multiprogramming involves alternating between programs during processing.
The correct answer is (C).
Multiprogramming involves the operating system (OS) processing a program to the point where input or output is involved, at which point, the OS delegates further work on that program to peripheral hardware, and processing an alternative program until the first program’s input is received or output is finished. Ideally, no interruption occurs that is discernible to the user, so multiple programs appear to run simultaneously.
Multiprocessing involves the OS using multiple CPUs to run multiple programs simultaneously.
In short, Multiprogramming is when a user can use multiple programs simultaneously whereas Multiprocessing is when the computer can process and run multiple programs simultaneously.
Option A: Multiprocessing allows multiple programs to execute simultaneously. (True as you can process multiple programs)
Option B: Multiprocessing allows a central memory to be shared by multiple programs. (True as CPU shares the memory to execute multiple Programs)
Option C: Multiprogramming allows multiple programs to execute simultaneously. (False as Multiprocessing allows multiple programs to execute simultaneously and therefore is the correct Option)
Option D: Multiprogramming involves alternating between programs during processing (True as you can switch between programs)
An auditor most likely would test for the presence of unauthorized IT program changes by running a
A
Program with test data
B
Check digit verification program
C
Source code comparison program
D
Program that computes control totals
C
A source code comparison program could be used to compare the original code written for a specific program to the current code in use for that program. Thus, it would make note of any differences in the program from the time it was originally written.
A commonly used measure of the relative effectiveness of an online site functioning as a retail (ecommerce) store is the
A
Abandonment ratio
B
Portability ratio
C
Volatility ratio
D
Volume
A
Abandonment ratios are based on the number of visitors who start, but don’t complete, transactions. This is also known as “shopping cart abandonment.” Information on the point at which visitors abandon their selections provides feedback to the website sponsor. Using these ratios, the site can be changed, for example, to make it easier for customers to find complementary products or to provide assurance that payment information is secure.
Portability is used in this question as a nonsense term. Volatility is concerned with how often files are updated. Volume addresses the amount of traffic on the site or the quantity of data transmission.
Which of the following is an advantage of a computer-based system for transaction processing over a manual system? A computer-based system:
A
Does not require as stringent a set of internal controls
B
Will produce a more accurate set of financial statements
C
Will be more efficient at producing financial statements
D
Eliminates the need to reconcile control accounts and subsidiary ledgers
C
A computerized system will be more efficient at producing financial statements. No matter what method is used to produce financial statements, the process still requires internal controls stringent enough to be effective for accurate financial statements, with reconciled control accounts and subsidiary ledgers.
In an IT department, which of the following professionals would be assigned the task of understanding the needs of the end-users and training them for new systems?
A
Computer operators
B
System analysts
C
System programmers
D
Application programmers
The correct answer is (B).
System analysts are assigned tasks that relate to making developed/purchased systems functional within an organization’s hierarchy. This task is achieved by determining the networks to be used, setting up the IT policies and architecture, and most importantly, by working with the end-users. System analysts understand the needs of the users and train them in the event of a new system being implemented.
A controller is developing a disaster recovery plan for a corporation’s computer systems. In the event of a 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
Hot site
B
Cold site
C
Back-up site procedures
D
Hot spare site agreement
B
By definition, a cold site is a location where equipment and power is available in the event of disaster at the primary location, but requires considerable effort to become functional. A hot site is similar to a cold site, except it has constant operational system functionality. Back-up site procedures and a hot spare site agreement are not commonly used terms.
Which of the following is likely to be more of a consideration for a personal computer system used to keep records for a business, as opposed to a large computer?
A
Limit or reasonableness checks generally are not adapted to specific situations.
B
The most important program and data files should be duplicated and stored safely off-site.
C
A physical environment free from extreme temperatures and humidity must be maintained.
D
A physical location protected from likely emergencies, such as fire or flooding.
B
In a personal computer system used for business record-keeping, backing up essential files and storing them off-site is crucial because personal systems are often more vulnerable to data loss due to limited disaster recovery measures compared to large computer systems that may have more robust safeguards in place.
Option A is incorrect because reasonableness or limit checks are generally tailored to specific applications or transaction types, regardless of the system’s size, and are important for data integrity in both large and small systems.
Option C is incorrect because maintaining an environment with stable temperatures and humidity is essential for all computing equipment, not just large computers, to prevent damage and ensure system longevity.
Option D is incorrect because protecting any computing system from emergencies like fire or flooding is a fundamental requirement, whether the system is a personal or large computer, to prevent potential physical damage and data loss.
What activity is least likely to occur during the analysis stage of system development?
A
Determine user information needs
B
Develop program specifications
C
Evaluate the current system
D
Identify problems in the current system
B
A system life cycle order is analysis, design, programming, implementation, and maintenance. Developing program specifications generally is considered part of design. The analysis stage is characterized by evaluation of the current system and future needs; thus, this phase generally includes determining user needs, evaluating the current system, identifying problems in the current system, and identifying objectives for the new system.
Which of the following factors necessitate an improvement or replacement in information systems?
A
Labor attrition
B
Increase in competition
C
New governmental regulations
D
Both (B) and (C)
The correct answer is (D).
Information systems require improvement or a complete replacement in certain events such as:
Change in the scale of business
Technological advancements
Gaining competitive advantages
Changes in governmental regulations
Aging and obsolescence
An increase in competition has to be dealt with by improvements in productivity and increasing the scale of business. New regulations might also mandate that organizations adapt to new technologies.
A research-based firm in the medical field could use each of the following Internet-based tools for collaboration, except
A
An E-mail Application
B
Videoconferencing
C
Groupware Systems
D
Electronic Data Interchange
D
Electronic Data Interchange (EDI) is primarily used for the structured transmission of business documents (such as invoices, purchase orders, and shipping notices) between organizations, typically in supply chain contexts. EDI is not generally intended for collaborative research or real-time communication, making it unsuitable for collaborative purposes in a research-based firm.
An E-Mail Application, Videoconferencing, and Groupware systems are all effective Internet-based tools for collaboration:
E-Mail Applications allow team members to communicate asynchronously, sharing information and updates.
Videoconferencing enables real-time communication and collaboration, essential for discussions and meetings.
Groupware Systems provide a collaborative platform for shared document management, project tracking, and team coordination.
Which is not part of the main components of a central processing unit (CPU)?
A
Arithmetic-Logic Unit
B
Control Unit
C
Disk Drive
D
Primary Memory
C
A Disk Drive is not part of the CPU; it is a separate storage device used to read and write data to storage media. The main components of a CPU are:
Arithmetic-Logic Unit (ALU): Performs mathematical calculations and logical operations.
Control Unit (CU): Directs operations within the CPU by interpreting and executing instructions.
Primary Memory (often refers to cache memory associated with the CPU): Temporarily stores instructions and data for quick access during processing.
Arithmetic-Logic Unit, Control Unit, and Primary Memory are all integral parts or closely associated components of the CPU, which work together to execute instructions and process data. Therefore, Disk Drive is correct, as it is not part of the CPU.
What best describes an allocation of computer tasks located throughout a nationwide entity’s various facilities?
A
Distributed processing
B
Local area network
C
Online processing
D
Multiprocessing
A
Distributed processing is an allocation of various processing tasks to various business divisions, with some tasks centralized and some decentralized. A local area network (LAN) typically is restricted to a small physical location, such as a building. Online processing refers to processing as data is input, as opposed to batch processing. Multiprocessing involves the operating system using multiple CPUs to run multiple programs simultaneously. Timesharing involves using another entity’s computer.
Which activity is a systems analyst least likely to perform?
A
Application design
B
Coding programs
C
Evaluating user requirements
D
Specification development
B
System analysts concentrate on developing system specifications to meet user needs. They assess any current systems, evaluate user needs, and design future systems, supplying programmers with specifications for coding. Under an ideal internal control system, system analysts don’t write programs or have access to operational equipment, programs, or data files—although system analysts might use copies, facsimiles, or samples of operational resources when assessing current systems.
What attribute is least descriptive of an executive information system?
A
Combines, integrates, and summarizes data from many sources
B
Designed to monitor business conditions and assist in strategic planning
C
Provides immediate and interactive access to information
D
Provides only highly aggregated information
D
While an executive information system (EIS) provides highly aggregated information, details supporting that information ideally are readily available. An EIS combines, integrates, and summarizes data from many sources (external as well as internal) to monitor business conditions and assist in strategic planning. An EIS typically provides immediate and interactive access to information.
Which of the following best describes a time-sharing center?
A
A center that processes client data for a fee
B
A computer remotely accessed by a number of different users, who are unaware of each other
C
A center that distills previously unknown relationships from information in an existing database
D
A location where equipment and power is available to geographically dispersed subscribers in the event of a disaster at one of their business sites
B
A time-sharing center has a computer remotely accessed by a number of different users, who are unaware of each other.
A service bureau processes client data for a fee. Data mining involves distilling previously unknown relationships from information in an existing database; it can be done in-house or out-sourced. A cold site is a location where equipment and power is available in the event of a disaster at regular business sites; geographically dispersed subscribers are unlikely to need the site at the same time; a time-sharing center typically is used routinely.
5
Which of the following is not a function of the steering committee?
A
Setting policies and guidelines for various information systems
B
Managing risk at all levels
C
Ensuring support and participation of top management
D
Coordinating and integrating information systems to increase goal congruence and reduce goal conflicts
B
The correct answer is (B).
A steering committee is a group of individuals formed with the intent of overseeing and regulating the Information Technology and System function within an organization. Its primary functions are listed as:
Setting policies for various information systems.
Ensuring support, guidance, and participation of the top management.
Coordination and integration of information systems to increase goal congruence and avoid goal conflicts.
Risk Management, though an important function, is not a part of the responsibilities of the steering committee.
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
Using real-time posting of payroll so there can be no after-the-fact data manipulation of the payroll register
C
Giving payroll data entry clerks the ability to change any suspicious hourly pay rates to a reasonable rate
D
Limiting access to employee master files to authorized employees in the personnel department
D
An employee’s hourly wage is recorded on the employee master file. Access to the employee master files should be limited to authorized employees in the personnel department only. This is an effective separation of duties. Having the data-entry clerk’s supervisor verify hours worked doesn’t prevent manipulation of wage rates. Early timing of the payroll posting doesn’t prevent data manipulation. Giving data-entry clerks authorization to set wage rates as well as enter hours worked (recording) is a violation of the separation of duties.
Which of the following statements about a data warehouse is correct?
A
It provides data to Operational Databases.
B
It is contained within an Operational Database.
C
It is created from a Data Mart for a special purpose.
D
It must be continuously updated to remain relevant.
D
For a Data Warehouse to continue providing value for business intelligence and decision-making, it must be continuously updated with new data from the operational systems and other sources. This ensures that the analyses derived from the warehouse are based on the most current and relevant data available.
Operational Databases provide the raw data that is then integrated into a Data Warehouse for analysis. Data Warehouses are used for analytical purposes and do not typically feed data back into operational systems.
A Data Warehouse is distinct from operational databases. Operational Databases are designed for the day-to-day operations of a business, while a data warehouse is structured to support business decisions by consolidating data from various sources for querying and analysis.
Data Marts are usually created from Data Warehouses. A Data Warehouse stores comprehensive data across the organization, and Data Marts are subsets of data warehouses designed for specific lines of business or departments.
