Multiple Choice Questions
The following questions concern the characteristics of IT systems. Choose the best response.
a. Effective management of information technologies in an organization embraces the viewpoint that
(1) Most technologies reduce existing risk conditions.
(2) Technologies reduce some types of risks while introducing new types of risks to be managed.
(3) Technologies generally increase an organization's overall net risks.
(4) The objective of technology implementations is to increase profitability on a net basis.
b. Which of the following is generally not considered a category of IT general controls? (1) Controls that determine whether a vendor number matches the pre-approved vendors in the vendor master file.
(2) Controls that restrict system-wide access to programs and data.
(3) Controls that oversee the acquisition of application software.
(4) Controls that oversee the day-to-day operation of IT applications.
c. As general IT controls weaken, the auditor is most likely to
(1) Reduce testing of automated application controls done by the computer.
(2) Increase testing of general IT controls to conclude whether they are operating effectively.
(3) Expand testing of automated application controls used to reduce control risk to cover greater portions of the fiscal year under audit.
(4) Ignore obtaining knowledge about the design of general IT controls and whether they have been implemented.
d. Which of the following is an example of an application control?
(1) The client uses access security software to limit access to each of the accounting applications.
(2) Employees are assigned a user ID and password that must be changed every quarter.
(3) The sales system automatically computes the total sale amount and posts the total to the sales journal master file.
(4) Systems programmers are restricted from doing applications programming functions.