Information Technology Governance Exam Preparation Guide
Course Introduction
Information Technology Governance is a course that explores the frameworks, processes, and best practices essential for aligning IT strategy with organizational goals to maximize value, manage risks, and ensure regulatory compliance. Students will examine the roles and responsibilities of key stakeholders, the development of IT policies, and the implementation of control mechanisms. The course emphasizes the assessment of governance models such as COBIT, ITIL, and ISO standards, teaching students how to evaluate and improve IT performance while fostering accountability and ethical decision-making in the management of information systems.
Recommended Textbook
Information Technology Auditing 4th Edition by James Hall
Available Study Resources on Quizplus
12 Chapters
1122 Verified Questions
1122 Flashcards
Source URL: https://quizplus.com/study-set/1104
Page 2
Chapter 1: Auditing and Internal Control
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/21726
Sample Questions
Q1) Which of the following is not an internal control procedure?
A) authorization
B) management's operating style
C) independent verification
D) accounting records
Answer: B
Q2) A qualified opinion on management's assessment of internal controls over the financial reporting system necessitates a qualified opinion on the financial statements?
A)True
B)False
Answer: False
Q3) Which concept is not an integral part of an audit?
A) evaluating internal controls
B) preparing financial statements
C) expressing an opinion
D) analyzing financial data
Answer: B
Q4) Locking petty cash in a safe is an example of __________________________. Answer: access controls
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Auditing IT Governance Controls
Available Study Resources on Quizplus for this Chatper
91 Verified Questions
91 Flashcards
Source URL: https://quizplus.com/quiz/21727
Sample Questions
Q1) Explain vendor exploitation.
Answer: Once the client firm has divested itself of specific assets it becomes dependent on the vendor. The vendor may exploit this dependency by raising service rates to an exorbitant level. As the client's IT needs develop over time beyond the original contract terms, it runs the risk that new or incremental services will be negotiated at a premium. This dependency may threaten the client's long term flexibility, agility and competitiveness and result in even greater vendor dependency.
Q2) What are commodity IT assets?
Answer: Commodity IT assets are not unique to a particular organization and are thus easily acquired in the marketplace. These include such things as network management, systems operations, server maintenance, and help-desk functions.
Q3) List five risks associated with IT outsourcing.
Answer: Failure to Perform
Vendor Exploitation
Outsourcing Costs Exceed Benefits
Reduced Security
Loss of strategic advantage.
To view all questions and flashcards with answers, click on the resource link above.
4
Chapter 3: Auditing Operating Systems and Networks
Available Study Resources on Quizplus for this Chatper
105 Verified Questions
105 Flashcards
Source URL: https://quizplus.com/quiz/21728
Sample Questions
Q1) In a ring topology
A) the network consists of a central computer which manages all communications between nodes
B) has a host computer connected to several levels of subordinate computers
C) all nodes are of equal status; responsibility for managing communications is distributed among the nodes
D) information processing units rarely communicate with each other
Answer: C
Q2) Audit objectives for communications controls include all of the following except
A) detection and correction of message loss due to equipment failure
B) prevention and detection of illegal access to communication channels
C) procedures that render intercepted messages useless
D) all of the above
Answer: D
Q3) The most frequent victims of program viruses are microcomputers.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above.
5
Chapter 4: Auditing Database Systems
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/21729
Sample Questions
Q1) In a hierarchical model
A) links between related records are implicit
B) the way to access data is by following a predefined data path
C) an owner (parent) record may own just one member (child) record
D) a member (child) record may have more than one owner (parent)
Q2) The textbook refers to four interrelated components of the database concept. Which of the following is not one of the components?
A) the database management system
B) the database administrator
C) the physical database
D) the conceptual database
Q3) A replicated database is appropriate when
A) there is minimal data sharing among information processing units
B) there exists a high degree of data sharing and no primary user
C) there is no risk of the deadlock phenomenon
D) most data sharing consists of read-write transactions
Q4) The conceptual view of the database is often called ____________________.
Q5) In a distributed data processing system, a database can be centralized or distributed. What are the options? Explain.
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Systems Development and Program Change
Activities
Available Study Resources on Quizplus for this Chatper
94 Verified Questions
94 Flashcards
Source URL: https://quizplus.com/quiz/21730
Sample Questions
Q1) In the conceptual design phase of the Systems Development Life Cycle (SDLC), task force members are focused on selecting the new system design.
A)True
B)False
Q2) Which step is least likely to occur when choosing a commercial software package?
A) a detailed review of the source code
B) contact with user groups
C) preparation of a request for proposal
D) comparison of the results of a benchmark problem
Q3) A commercial software system that is completely finished, tested, and ready for implementation is called a
A) backbone system
B) vendor-supported system
C) benchmark system
D) turnkey system
Q4) Legal feasibility identifies conflicts between the proposed system and the company's ability to discharge its legal responsibilities
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Transaction Processing and Financial Reporting
Systems Overview
Available Study Resources on Quizplus for this Chatper
98 Verified Questions
98 Flashcards
Source URL: https://quizplus.com/quiz/21731
Sample Questions
Q1) Is a DFD an effective documentation technique for identifying who or what performs a particular task? Explain.
Q2) A file that stores data used as a standard when processing transactions is A) a reference file
B) a master file
C) a transaction file
D) an archive file
Q3) How is backup of database files accomplished?
Q4) Real-time processing in systems that handle large volumes of transactions each day can create operational inefficiencies.
A)True
B)False
Q5) Why might an auditor use a program flowchart?
Q6) The box symbol represents a temporary file.
A)True
B)False
Q7) Time lag is one characteristic used to distinguish between batch and real-time systems. Explain. Give an example of when each is a realistic choice.
Q8) Only four symbols are used in data flow diagrams. What are they? Page 8
To view all questions and flashcards with answers, click on the resource link above.
Page 9
Chapter 7: Computer Assisted Audit Tools and Techniques
Available Study Resources on Quizplus for this Chatper
82 Verified Questions
82 Flashcards
Source URL: https://quizplus.com/quiz/21732
Sample Questions
Q1) Name four input controls and describe what they test?
Q2) Auditors do not rely on detailed knowledge of the application's internal logic when they use the __________________________ approach to auditing computer applications.
Q3) Describe and contrast the test data method with the integrated test facility.
Q4) Which statement is not correct?
A) Only successful transactions are recorded on a transaction log.
B) Unsuccessful transactions are recorded in an error file.
C) A transaction log is a temporary file.
D) A hardcopy transaction listing is provided to users.
Q5) Discuss the three categories of input of input controls.
Q6) The firm allows no more than 10 hours of overtime a week. An employee entered "15" in the field. Which control will detect this error?
Q7) A __________________________ fraud affects a large number of victims but the harm to each appears to be very small.
Q8) Explain input controls.
Q9) Describe parallel simulation.
Q11) How does privacy relate to output control? Page 10
Q10) Explain the three methods used to correct errors in data entry.
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 8: Data Structures and Caatts for Data Extraction
Available Study Resources on Quizplus for this Chatper
81 Verified Questions
81 Flashcards
Source URL: https://quizplus.com/quiz/21733
Sample Questions
Q1) The database approach to data management is sometimes called the flat file approach.
A)True
B)False
Q2) The two fundamental components of data structures are organization and access method.
A)True
B)False
Q3) Comment on the following statement: "Legacy systems use flat file structures."
Q4) Database anomalies are symptoms of structural problems within tables called A) tuples
B) dependencies
C) collisions
D) Attributes
Q5) What are the two fundamental components of data structures?
Q6) What is a hashing structure? What are the advantage(s) and disadvantage(s) associated with it?
Q7) Give an example of the insertion anomaly.
To view all questions and flashcards with answers, click on the resource link above. Page 12
Q8) Give three examples that illustrate how cardinality reflects an organization's underlying business rules.
Chapter 9: Auditing the Revenue Cycle
Available Study Resources on Quizplus for this Chatper
97 Verified Questions
97 Flashcards
Source URL: https://quizplus.com/quiz/21734
Sample
Questions
Q1) What specific internal control procedure would prevent a customer from being billed for all 50 items ordered although only 40 items were shipped?
Q2) Which journal is not used in the revenue cycle?
A) cash receipts journal
B) sales journal
C) purchases journal
D) general journal
Q3) What specific internal control procedure would prevent an increase in sales returns since salesmen were placed on commission?
Q4) The cash receipts journal is a special journal.
A)True
B)False
Q5) Which situation indicates a weak internal control structure?
A) the mailroom clerk authorizes credit memos
B) the record keeping clerk maintains both accounts receivable and accounts payable subsidiary ledgers
C) the warehouse clerk obtains a signature before releasing goods for shipment
D) the accounts receivable clerk prepares customer statements every month
Q6) What function does the receiving department serve in the revenue cycle?
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 10: Auditing the Expenditure Cycle
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/21735
Sample Questions
Q1) How does the procedure for determining inventory requirements differ between a basic batch processing system and batch processing with real-time data input of sales and receipts of inventory? What about for the procedures used by the receiving department?
Q2) A major risk exposure in the expenditure cycle is that accounts payable may be overstated at the end of the accounting year.
A)True
B)False
Q3) What internal accounting control(s) would be the most effective in preventing a storekeeper from taking inventory home at night? When shortages become apparent, he claims the goods were never received.
Q4) The open purchase order file in the purchasing department is used to determine A) the quality of items a vendor ships
B) the best vendor for a specific item
C) the orders that have not been received
D) the quantity of items received
Q5) Why does the payroll process lend itself to batch processing?
Q6) Explain why supervision is so important in the receiving department.
Q7) Where is access control exercised in the purchasing/cash disbursement functions?
Page 14
To view all questions and flashcards with answers, click on the resource link above.
Chapter 11: Enterprise Resource Planning Systems
Available Study Resources on Quizplus for this Chatper
90 Verified Questions
90 Flashcards
Source URL: https://quizplus.com/quiz/21736
Sample Questions
Q1) A data warehouse is a relational or multi-dimensional database that may require hundreds of gigabytes of storage.
A)True
B)False
Q2) Scalability has several dimensions. What are they? What do they mean for ERP installation?
Q3) An access control list specifies the user-ID, the resources available to the user, and the level of permission granted.
A)True
B)False
Q4) The implementation of an ERP creates an environment with a single point of failure, which places the organization at risk.
A)True
B)False
Q5) If an auditor suspected an "unusual" relationship between a purchasing agent and certain suppliers, how could "drill-down" be used to collect data?
Q6) Why do ERP systems need bolt-on software? Give an example.
Q7) Define ERP.
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 12: Business Ethics, Fraud, and Fraud Detection
Available Study Resources on Quizplus for this Chatper
84 Verified Questions
84 Flashcards
Source URL: https://quizplus.com/quiz/21737
Sample Questions
Q1) Explain the problems associated with Questionable Executive Compensation Schemes
Q2) The four principal types of fraud include all of the following except
A) bribery
B) gratuities
C) conflict of interest
D) economic extortion
Q3) Business ethics is the analysis of the nature and social impact of computer technology, and the corresponding formulation and justification of policies for the ethical use of such technology.
A)True
B)False
Q4) Which characteristic is not associated with software as intellectual property?
A) uniqueness of the product
B) possibility of exact replication
C) automated monitoring to detect intruders
D) ease of dissemination
Q5) The text discusses many questions about personal traits of executives which might help uncover fraudulent activity. What are three?
Page 16
Q6) Explain the characteristics of management fraud.
To view all questions and flashcards with answers, click on the resource link above.