Question 1

An invalid item is an object or event that is not authorized, never occurred, or is otherwise not genuine.

Accepted Answer

An invalid item is indeed an object or event that is not authorized, never occurred, or is otherwise not genuine.

Question 2

A sale to a customer is entered into the system properly, but the event does not accurately update the customer's outstanding balance.This type of processing error would be classified as a user error.

Accepted Answer

This would be classified as a system error, not a user error, since the error is occurring within the system itself rather than being caused by the actions of the user.

Question 3

A process, effected by an entity's board of directors, management and other personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may effect the entity, and manage risk to be within its risk appetite, to provide reasonable assurance regarding the achievement of entity objectives.
A)enterprise risk management
B)internal control
C)organizational governance
D)risk assessment

Accepted Answer

The definition provided aligns with the concept of enterprise risk management (ERM), which involves managing risks across an organization in a strategic and comprehensive manner. Internal control refers to the policies and procedures put in place to ensure that an organization's objectives are met and that financial reporting is accurate, reliable, and compliant. Organizational governance refers to the overall framework for how an organization is managed, including the roles and responsibilities of its board of directors and other key stakeholders. Risk assessment is a component of ERM that involves identifying potential risks and assessing their likelihood and impact on an organization's objectives. However, none of the other options fully capture the breadth and scope of the definition provided.

Question 4

The control matrix is a computer virus that takes control of the computer's operating system for malicious purposes.

Accepted Answer

The control matrix is not a computer virus; it is a conceptual framework or tool used in various fields such as management, auditing, and information systems to ensure that internal controls are effectively implemented to manage risks.

Question 5

The ERM framework addresses four categories of management objectives.Which category concerns high-level goals, aligned with and supporting its mission?
A)compliance
B)operations
C)reporting
D)strategic

Accepted Answer

The strategic category concerns high-level goals that support an organization's mission. The other categories address more specific areas of risk management such as compliance, operations, and reporting.

Question 6

Salami slicing is program code that can attach itself to other programs (i.e., "infect" those programs), that can reproduce itself, and that operates to alter the programs or to destroy data.

Accepted Answer

Salami slicing refers to a series of minor actions, often illegal or unethical, that together result in a larger action that would be illegal or unethical if carried out all at once. It does not refer to a type of program code or malware.

Question 7

A computer abuse technique called a back door involves a programmer's inserting special code or passwords in a computer program that will allow the programmer to bypass the security features of the program.

Accepted Answer

This statement is true. A back door is a type of computer abuse technique that involves adding special code or passwords to a program that allows a programmer to bypass the normal security features. This can be used to gain unauthorized access to a system or to manipulate data without being detected. It is important for computer users to be aware of the potential risks associated with back doors and to take steps to protect their systems from this type of abuse.

Question 8

A manager of a manufacturing plant alters production reports to provide the corporate office with an inflated perception of the plant's cost effectiveness in an effort to keep the inefficient plant from being closed.This action would be classified as a(n):
A)risk
B)hazard
C)fraud
D)exposure

Accepted Answer

The manufacturing plant manager is deliberately altering production reports with the intention of deceiving the corporate office. This constitutes an act of fraud.

Question 9

The control goal called efficiency of operations strives to assure that a given operations system is fulfilling the purpose(s) for which it was intended.

Accepted Answer

The control goal called efficiency of operations focuses on ensuring that operations are conducted in an efficient manner, utilizing resources effectively and minimizing waste, rather than solely on fulfilling the purposes for which the system was intended.

Question 10

The control goal of ensuring input materiality strives to prevent fictitious items from entering an information system.

Accepted Answer

The answer of The control goal of ensuring input materiality...

Question 11

Ethical behavior and management integrity are products of the corporate culture.

Accepted Answer

Ethical behavior and management integrity are influenced by the values, norms, and practices that are promoted within an organization. These are all components of the corporate culture. Therefore, the corporate culture plays a significant role in shaping the ethical behavior and management integrity of an organization.

Question 12

Ensuring the security of resources is the control goal that seeks to provide protection against loss, destruction, disclosure, copying, sale, or other misuse of an organization's resources.

Accepted Answer

Ensuring security of resources is indeed the control goal that aims to provide protection against various forms of misuse or loss.

Question 13

A corrective control plan is designed to discover problems that have occurred.

Accepted Answer

A corrective control plan is designed to correct or remediate problems that have already occurred, not to discover them. A detective control plan, on the other hand, is designed to discover problems or issues as they arise.

Question 14

A batch of business events is accurately entered into a business event data, but the computer operator fails to use the data to update master data.This type of processing error would be classified as an operational error.

Accepted Answer

This processing error is related to the operation of the data entry process and is therefore classified as an operational error.

Question 15

The control goal of input accuracy is concerned with the correctness of the transaction data that are entered into a system.

Accepted Answer

The statement is true. The control goal of input accuracy focuses on ensuring that the data entered into a system is accurate and error-free. This is important for maintaining the integrity and reliability of the system's outputs and preventing errors or inconsistencies in later stages of the transaction processing cycle.

Question 16

Business process control plans relate to those controls particular to a specific process or subsystem, such as billing or cash receipts, or to a particular technology used to process data.

Accepted Answer

Business process control plans are specific controls designed for a particular process or subsystem, or a technology used to process data.

Question 17

A process by which organizations select objectives, establish processes to achieve objectives, and monitor performance is
A)enterprise risk management
B)internal control
C)organizational governance
D)risk assessment

Accepted Answer

The process described in the question is organizational governance, which refers to the way an organization sets and achieves its objectives, as well as how it monitors and evaluates its performance. Enterprise risk management (A) is a specific aspect of organizational governance that focuses on identifying and managing risks that may impact the achievement of objectives. Internal control (B) is a component of organizational governance that involves policies, procedures, and practices designed to ensure that an organization's objectives are achieved with efficiency and effectiveness, and that financial reporting is accurate and reliable. Risk assessment (D) is a component of enterprise risk management that involves identifying, analyzing, and prioritizing risks that may impact an organization's ability to achieve its objectives.

Question 18

A computer crime technique called worm involves the systematic theft of very small amounts from a number of bank or other financial accounts.

Accepted Answer

The description provided in the statement is not accurate for a worm. A worm is a type of malware that replicates itself to spread across networks or systems and often causes damage or disruption, but it does not typically involve theft of funds from bank or financial accounts. The description provided may be more applicable to a type of financial fraud or cybercrime, but not a worm.

Question 19

A logic bomb is a computer abuse technique in which unauthorized code is inserted in a program, which, when activated, may cause a disaster such as shutting down a system or destroying data.

Accepted Answer

A logic bomb is indeed a computer abuse technique where unauthorized code is inserted in a program to cause harm.

Question 20

According to the 2008 Report to the Nation on Occupational Fraud and Abuse, frauds are more likely to be detected by audits or internal controls than through tips.

Accepted Answer

The 2008 Report to the Nation on Occupational Fraud and Abuse found that frauds are more likely to be detected through tips than by audits or internal controls.

Quiz 7: Controlling Information Systems: Introduction to Enterprise Risk Management and Internal Control