Question 1

When we say that an organization has an "integrated security policy", what do we mean?
A)The organization is working with suppliers and customers to improve security up and down the supply chain
B)Managers in various departments within the firm meet to assess risk and develop security options for top management
C)The organization is using a variety of security measures, such as firewalls, virus protection, intrusion detection systems, virtual private networks, etc.
D)none of the above

Accepted Answer

An "integrated security policy" refers to the use of a variety of security measures working together to protect an organization's information systems and data.

Question 2

An effective control for maintaining the privacy of data stored on a large, networked server would be:
A)Security personnel at the building entrance
B)Encryption
C)Laptop protection policies
D)Routing verification

Accepted Answer

Encryption is the process of converting data into a code to prevent unauthorized access, making it an effective control for maintaining the privacy of data stored on a large, networked server.

Question 3

Enterprise controls:
A)Are controls in Enterprise Resource Planning Systems
B)Are controls required by the AICPA
C)Affect only application controls
D)Affect many general and application controls

Accepted Answer

Enterprise controls are broad in scope, affecting many general and application controls within an organization, ensuring the integrity, reliability, and security of data and IT systems.

Question 4

___ controls prevent, detect, and correct errors and irregularities in processing transactions.
A)Application
B)General
C)Logical
D)Physical

Accepted Answer

Application controls are specifically designed to prevent, detect, and correct errors and irregularities in the processing of transactions within software applications.

Question 5

A company's management is concerned about computer data eavesdropping and wants to maintain the confidentiality of its information as it is transmitted.The company should use:
A)Data encryption
B)Dial back systems
C)Message acknowledgment procedures
D)Password codes

Accepted Answer

Data encryption is the process of converting information or data into a code, especially to prevent unauthorized access. This is the most effective method for maintaining the confidentiality of information as it is transmitted, as it ensures that even if data is intercepted, it cannot be understood without the encryption key.

Question 6

When developing a Business Continuity Plan (BCP), the ___ is used to identify and inventory critical business processes and supporting systems, and to establish priorities and timelines for recovery efforts.
A)Emergency Communication Plan
B)Business Resumption Plan
C)Disaster Recovery Plan
D)Business Impact Analysis

Accepted Answer

The Business Impact Analysis (BIA) is a critical component of a Business Continuity Plan (BCP) that helps in identifying and evaluating the effects of an interruption to critical business operations as a result of a disaster, accident, or emergency. It is used to inventory critical business processes and supporting systems, and to establish priorities and timelines for recovery efforts.

Question 7

___ controls help ensure the validity, accuracy and completeness of data entered into an AIS.
A)Input
B)Processing
C)Output
D)Storage

Accepted Answer

Input controls are designed to ensure that the data entered into an Accounting Information System (AIS) is accurate, complete, and valid before it is processed. These controls include procedures and techniques like data validation checks, error checking, and authorization procedures to prevent incorrect data entry.

Question 8

If _____ controls are ineffective, this can cause ____ controls to be unreliable.
A)IT general, application
B)Application, IT general
C)Application, enterprise
D)Cross-footing, segregation of duties

Accepted Answer

IT general controls are foundational controls that support the functioning of application controls. If IT general controls are ineffective, it can undermine the reliability of application controls, as these rely on the general IT environment's integrity and security.

Question 9

In entering the billing address for a new client in Emil Company's computerized database, a clerk erroneously entered a nonexistent zip code.As a result, the first month's bill mailed to the new client was returned to Emil Company.Which one of the following would most likely have led to discovery of the error at the time of entry into Emil Company's computerized database?
A)Limit test
B)Validity test
C)Parity test
D)Record count test

Accepted Answer

A validity test checks the accuracy of input data by comparing it to a set of rules or values. In this case, a validity test could have verified whether the entered zip code exists, potentially catching the error upon entry.

Question 10

Within database systems, a control that restricts user access to precisely designated data sets and files is called a(an):
A)Layered password
B)Open password
C)Closed password
D)Server password

Accepted Answer

Layered passwords are used to restrict user access to specific data sets and files within database systems.

Question 11

A company's computer facilities and computer room conceivably could be destroyed completely by fire.The most appropriate action a company could take in an attempt to prepare for and protect itself for such a disaster would be:
A)To have backup computer facilities at the same site
B)To have off-site backup computer facilities
C)To have a reconstruction and recovery plan which outlines the procedures for reconstruction of files and use of alternate facilities
D)To have a contractual agreement with the manufacturer or another company to use its facilities
E)To have the grandfather-parent-child concept implemented for all files stored on magnetic tapes

Accepted Answer

The answer of A company's computer facilities and computer room...

Question 12

A "flying-start site" for disaster recovery purposes is a location that includes:
A)A computer system configured similarly to the system normally used
B)A computer system configured similarly to the system normally used plus up-to-date backup data and software
C)Power and environmentally controlled space to install equipment on short notice
D)none of the above

Accepted Answer

A "flying-start site" for disaster recovery is a location that not only has a computer system configured similarly to the system normally used but also includes up-to-date backup data and software to ensure a quick recovery in the event of a disaster.

Question 13

An example of a check-digit technique that includes "ordering of digits" in the construction of check-digit values is the:
A)Odd-even technique
B)Modulus 11 technique
C)Value-digit technique
D)Orion technique

Accepted Answer

The Modulus 11 technique involves ordering of digits in the construction of check-digit values.

Question 14

A company's disaster recovery site that includes a computer system configured similarly to the system used regularly by the company for data processing purposes is called:
A)A cold site
B)A recovery site
C)A disaster site
D)A hot site

Accepted Answer

A hot site is a disaster recovery site that is fully equipped and ready to take over operation at any time, mirroring the company's primary data processing capabilities.

Question 15

Regarding Mobile Device Management (MDM)solutions, which of the following is false?
A)MDM software often creates a virtual container on the mobile device that can be remotely managed
B)If an employee terminates or their device is lost, the MDM will erase all data on the device
C)Sensitive enterprise resources are stored and processed within the container
D)MDM software must be installed on the mobile device

Accepted Answer

The statement that MDM will erase all data on the device is false. MDM solutions typically allow for selective wiping, which means only the enterprise data or the specific container managed by the MDM can be erased, not necessarily all data on the device. This allows personal data to remain untouched when an employee leaves or if a device is lost.

Question 16

The risk of unauthorized access to data through electronic eavesdropping is minimized by using:
A)Data encryption
B)Routing verification procedures
C)Message acknowledgement procedures
D)EDC

Accepted Answer

Data encryption transforms data into a secure format that is unreadable without a decryption key, effectively minimizing the risk of unauthorized access through electronic eavesdropping.

Quiz 7: Computer Controls for Organizations and Accounting Information Systems

When we say that an organization has an "integrated security policy", what do we mean?

An effective control for maintaining the privacy of data stored on a large, networked server would be:

Enterprise controls:

___ controls prevent, detect, and correct errors and irregularities in processing transactions.

A company's management is concerned about computer data eavesdropping and wants to maintain the confidentiality of its information as it is transmitted.The company should use:

When developing a Business Continuity Plan (BCP) , the ___ is used to identify and inventory critical business processes and supporting systems, and to establish priorities and timelines for recovery efforts.

___ controls help ensure the validity, accuracy and completeness of data entered into an AIS.

If _ controls are ineffective, this can cause controls to be unreliable.

Within database systems, a control that restricts user access to precisely designated data sets and files is called a(an) :

A company's computer facilities and computer room conceivably could be destroyed completely by fire.The most appropriate action a company could take in an attempt to prepare for and protect itself for such a disaster would be:

A "flying-start site" for disaster recovery purposes is a location that includes:

An example of a check-digit technique that includes "ordering of digits" in the construction of check-digit values is the:

A company's disaster recovery site that includes a computer system configured similarly to the system used regularly by the company for data processing purposes is called:

Regarding Mobile Device Management (MDM) solutions, which of the following is false?

The risk of unauthorized access to data through electronic eavesdropping is minimized by using: