Midterms (T/F) Flashcards

1
Q

Preventive controls are passive techniques designed to reduce fraud.

True
False

A

True

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2
Q

A key modifying assumption in internal control is that the internal control system is the responsibility of management.

True
False

A

True

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3
Q

A qualified opinion on management’s assessment of internal controls is over the financial reporting system necessitates a qualified opinion on the financial statements.

True
False

A

False

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4
Q

IT auditing is a small part of most external and internal audits.

True
False

A

False

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5
Q

An IT auditor expresses an opinion on the fairness of the financial statements.

True
False

A

False

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6
Q

Segregation of duties is an example of an internal control procedures.

True
False

A

True

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7
Q

The same internal control objectives apply to manual and computer-based information systems.

True
False

A

True

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8
Q

Corporate management (including the CEO) must certify monthly and annually their organization’s internal controls over financial reporting.

True
False

A

False

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9
Q

Application controls apply to a wide range of exposures that threaten the integrity of all programs processed within the computer environment.

True
False

A

False

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10
Q

To fulfill the segregation of duties control objective, computer processing/functions (like authorization of credit and billing) are separated.

True
False

A

False

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11
Q

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

True
False

A

True

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12
Q

RAID is the use of parallel disks that contain redundant elements of data applications.

True
False

A

True

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13
Q

A database administrator is responsible for the receipt, storage, retrieval, and custody of data files.

True
False

A

False

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14
Q

Commodity IT assets include such things are network management.

True
False

A

True

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15
Q

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

True
False

A

False

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16
Q

The database administrator should be separated from systems development.

True
False

A

True

17
Q

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

True
False

A

True

18
Q

A disaster recovery plan is a comprehensive statement of all actions to be taken after a disaster.

True
False

A

True

19
Q

Test of controls determine whether the database contents fairly reflect the organization’s transactions.

True
False

A

False

20
Q

Commodity IT assets acquired in the marketplace should be outsourced under the core competency theory.

True
False

A

False