1. Statement 1: Even after selecting a finalist, an organization might still be hesitant to commit. Point-scoring analysis, potential buyers "test drive" a software package to further evaluate the system.

Statement 2: Two methods for Making a Final decision are (1) point scoring analysis(2) hands-on testing.

A. 1st Statement is correct; 2nd Statement is correct.

B. 1st Statement is correct; 2nd Statement is incorrect.

C. 1st Statement is incorrect; 2nd Statement is correct.

D. 1st Statement is incorrect; 2nd Statement is incorrect.

2. Statement 1: Detailed systems design begins with the design of inputs, and then outputs and processes.

Statement 2: Systems Analysis examine a system in depth.

A. 1st Statement is correct; 2nd Statement is correct.

B. 1st Statement is correct; 2nd Statement is incorrect.

C. 1st Statement is incorrect; 2nd Statement is correct.

D. 1st Statement is incorrect; 2nd Statement is incorrect.

3. Statement 1: Business Process Reengineering is the task of making major modifications to one of an organization's core systems.

Statement 2: Corporation requires creating a team to investigate the future system and make recommendations to a steering committee.

A. 1st Statement is correct; 2nd Statement is correct.

B. 1st Statement is correct; 2nd Statement is incorrect.

C. 1st Statement is incorrect; 2nd Statement is correct.

D. 1st Statement is incorrect; 2nd Statement is incorrect.

4. Statement 1: Phishing is an especially important problem for banks because employees often create bogus websites that trick bank customers into revealing their account numbers and passwords.

Statement 2: Identity theft refers to an act in which someone rightfully obtains and uses another person's personal data for fraud or deception.

A. 1st Statement is correct; 2nd Statement is correct.

B. 1st Statement is correct; 2nd Statement is incorrect.

C. 1st Statement is incorrect; 2nd Statement is correct.

D. 1st Statement is incorrect; 2nd Statement is incorrect.

5. Statement 1: Knowledge process outsourcing (KPO), a business contracts with an inside company to perform research or other knowledge-related work.

Statement 2: Prototyping can purchase prewritten software (commonly called canned software) and perhaps modify it to suit the organization's needs.

A. 1st Statement is correct; 2nd Statement is correct.

B. 1st Statement is correct; 2nd Statement is incorrect.

C. 1st Statement is incorrect; 2nd Statement is correct.

D. 1st Statement is incorrect; 2nd Statement is incorrect.

6. Statement 1: Edwin Pena of Spokane, Washington, the professional hacker who penetrated the networks for Moore. Statement 2: After Moore obtained proprietary codes (known as prefixes), he and Pena allegedly flooded providers with test calls until they were able to match up prefixes.

A. 1st Statement is correct; 2nd Statement is correct.

B. 1st Statement is correct; 2nd Statement is incorrect.

C. 1st Statement is incorrect; 2nd Statement is correct.

D. 1st Statement is incorrect; 2nd Statement is incorrect.

7. Statement 1: Once ''detonated,'' a logic bomb program sabotages a system by destroying data and/or disrupting computer operations.

Statement 2: Computer crime and abuse are also significant because of the large proportion of firms that suffer million-dollar losses due to frauds, computer viruses, unauthorized access, and denial of service attacks.

A. 1st Statement is correct; 2nd Statement is correct.

B. 1st Statement is correct; 2nd Statement is incorrect.

C. 1st Statement is incorrect; 2nd Statement is correct.

D. 1st Statement is incorrect; 2nd Statement is incorrect.

8. Statement 1: All controls available for the computerized accounting information system of a company should be implemented regardless of cost due to the high rate of computer crime.

Statement 2: One of the more compelling aspects of output control deals with the subject of forms control.

A. 1st Statement is correct; 2nd Statement is correct.

B. 1st Statement is correct; 2nd Statement is incorrect.

C. 1st Statement is incorrect; 2nd Statement is correct.

D. 1st Statement is incorrect; 2nd Statement is incorrect.

9. Statement 1: Detective controls alert managers when the preventive controls fail.

Statement 2: Preventive controls are procedures a company uses to solve or correct a problem.

A. 1st Statement is correct; 2nd Statement is correct.

B. 1st Statement is correct; 2nd Statement is incorrect.

C. 1st Statement is incorrect; 2nd Statement is correct.

D. 1st Statement is incorrect; 2nd Statement is incorrect.

10. Statement 1: The purpose of risk assessment is to identify organizational risks, analyze their potential in terms of costs and likelihood of occurrence, and implement only those controls whose projected benefits outweigh their costs. Statement 2: It is not possible or even desirable to install controls for every possible risk or threat.

A. 1st Statement is correct; 2nd Statement is correct.

B. 1st Statement is correct; 2nd Statement is incorrect.

C. 1st Statement is incorrect; 2nd Statement is correct.

D. 1st Statement is incorrect; 2nd Statement is incorrect.

11. Statement 1: In most companies, contingency planning is unnecessary.

Statement 2: Use of computer accounts most computer networks maintain a system of separate computer accounts.*

A. 1st Statement is correct; 2nd Statement is correct.

B. 1st Statement is correct; 2nd Statement is incorrect.

C. 1st Statement is incorrect; 2nd Statement is correct.

D. 1st Statement is incorrect; 2nd Statement is incorrect.

12. Statement 1: Internal Audit is compulsory by nature and can be conducted to review operational activities of the organization. Statement 2: Data communication is one the part of Component of an IT audit.*

A. 1st Statement is correct; 2nd Statement is correct.

B. 1st Statement is correct; 2nd Statement is incorrect.

C. 1st Statement is incorrect; 2nd Statement is correct.

D. 1st Statement is incorrect; 2nd Statement is incorrect.

13. Statement 1: Anti-virus software are computer programs that scan computer inputs for virus-like coding, identify active viruses that are already lodged in computer systems, clean computer systems already infected, or perform some combination of these activities.

Statement 2: In organizational settings, effective control procedures against computer viruses include educating users about viruses and encouraging computer users to follow the virus prevention and detection techniques.*

A. 1st Statement is correct; 2nd Statement is correct.

B. 1st Statement is correct; 2nd Statement is incorrect.

C. 1st Statement is incorrect; 2nd Statement is correct.

D. 1st Statement is incorrect; 2nd Statement is incorrect.

14. Statement 1: Most commercial websites deposit a cookie on your computer, which is a small text file that stores information about your browsing habits and interests, as well as other information that you may supply by logging onto the site.

Statement 2: Lock-out systems connect telephone users after a set number of unsuccessful login attempts, thereby thwarting microcomputer users from using dictionary programs.*

A. 1st Statement is correct; 2nd Statement is correct.

B. 1st Statement is correct; 2nd Statement is incorrect.

C. 1st Statement is incorrect; 2nd Statement is correct.

D. 1st Statement is incorrect; 2nd Statement is incorrect.

15. Statement 1: The security principle refers to protection of system resources against unauthorized access. Statement 2: The availability principle addresses whether or not a system achieves its purpose (i.e., delivers the right data at the right price at the right time).*

A. 1st Statement is correct; 2nd Statement is correct.

B. 1st Statement is correct; 2nd Statement is incorrect.

C. 1st Statement is incorrect; 2nd Statement is correct.

D. 1st Statement is incorrect; 2nd Statement is incorrect.

16. Statement 1: Voice over Internet Protocol (VoIP) is a technology that allows you to make telephone calls using a regular telephone line instead of a broadband Internet connection.

Statement 2: Experts believe the computer crime that is detected is only the tip of the iceberg.*

A. 1st Statement is correct; 2nd Statement is correct.

B. 1st Statement is correct; 2nd Statement is incorrect.

C. 1st Statement is incorrect; 2nd Statement is correct.

D. 1st Statement is incorrect; 2nd Statement is incorrect.

17. Statement 1: The audit trail is easier to follow in an online computerized system as compared to a batch system.

Statement 2: A completeness test is an internal equipment control to test whether or not all transactions have been processed.*

A. 1st Statement is correct; 2nd Statement is correct.

B. 1st Statement is correct; 2nd Statement is incorrect.

C. 1st Statement is incorrect; 2nd Statement is correct.

D. 1st Statement is incorrect; 2nd Statement is incorrect.

18. Statement 1: Within these six activities, specific control procedures should be designed and implemented for each company based on its particular control needs.

Statement 2: Six control activities to include in each organization's internal control system are: (1) a good audit trail, (2) sound personnel policies and practices, (3) separation of duties, (4) physical protection of assets, (5) internal reviews of controls by internal audit subsystem, and (6) timely performance reports.*

A. 1st Statement is correct; 2nd Statement is correct.

B. 1st Statement is correct; 2nd Statement is incorrect.

C. 1st Statement is incorrect; 2nd Statement is correct.

D. 1st Statement is incorrect; 2nd Statement is incorrect.

19. Statement 1: Vendee may provide technical training for free, or at reduced costs, to corporate users as incentives to use their services.

Statement 2: Systems analysis requires identifying specific systems goals, top management systems goals, and operating management systems goals.*

A. 1st Statement is correct; 2nd Statement is correct.

B. 1st Statement is correct; 2nd Statement is incorrect.

C. 1st Statement is incorrect; 2nd Statement is correct.

D. 1st Statement is incorrect; 2nd Statement is incorrect.

20. Statement 1: TRW (now called Experian) was one of several large credit-rating companies in the United States.

Statement 2: In the TRW Credit Data case, the valuable information involved was printed credit data.*

A. 1st Statement is correct; 2nd Statement is correct.

B. 1st Statement is correct; 2nd Statement is incorrect.

C. 1st Statement is incorrect; 2nd Statement is correct.

D. 1st Statement is incorrect; 2nd Statement is incorrect.

21. Statement 1: In small organizations, system redesigns or new development work typically involve millions of dollars, making mistakes very costly.

Statement 2: Top management approve or support the old systems.*

A. 1st Statement is correct; 2nd Statement is correct.

B. 1st Statement is correct; 2nd Statement is incorrect.

C. 1st Statement is incorrect; 2nd Statement is correct.

D. 1st Statement is incorrect; 2nd Statement is incorrect.

22. Statement 1: Consensus-based protocols contain an odd number of processors.

Statement 2: General controls include software controls, physical hardware controls, computer operations controls. *

A. 1st Statement is correct; 2nd Statement is correct.

B. 1st Statement is correct; 2nd Statement is incorrect.

C. 1st Statement is incorrect; 2nd Statement is correct.

D. 1st Statement is incorrect; 2nd Statement is incorrect.

23. Statement 1:Third-Party and Information Systems Reliability Assurances, Are a source of risk for many companies. Statement 2: Third-Party and Information Systems Reliability Assurances, Have created a market for third-party assurance services which-is limited to data privacy*

A. 1st Statement is correct; 2nd Statement is correct.

B. 1st Statement is correct; 2nd Statement is incorrect.

C. 1st Statement is incorrect; 2nd Statement is correct.

D. 1st Statement is incorrect; 2nd Statement is incorrect.

24. Statement 1: GAS means Generalize audit systems.

Statement 2: Sarbanes Oxley Act most sweeping piece of legislation to impact financial reporting and the accounting professions.*

A. 1st Statement is correct; 2nd Statement is correct.

B. 1st Statement is correct; 2nd Statement is incorrect.

C. 1st Statement is incorrect; 2nd Statement is correct.

D. 1st Statement is incorrect; 2nd Statement is incorrect.

25. Statement 1: Ethics is a set of moral principles or values. Therefore, ethical behavior involves making choices and judgments that are morally acceptable and then acting accordingly.

Statement 2: Employees who experience guilt or remorse from their crimes, or who fear discovery, often express these feelings in usual behavior.*

A. 1st Statement is correct; 2nd Statement is correct.

B. 1st Statement is correct; 2nd Statement is incorrect.

C. 1st Statement is incorrect; 2nd Statement is correct.

D. 1st Statement is incorrect; 2nd Statement is incorrect.