Deck 5: Corporate and It Governance

Question 1

Which of the following is a process established by an organization's board of directors to provide reasonable assurance for the effectiveness and efficiency of operations?

A)Service transition
B)Internal control
C)Knowledge management
D)Proactive analysis

Answer 1

B

Question 2

Which of the following is an intent of the Bank Secrecy Act?

A)To create international standards that strengthen global capital and liquidity rules with the goal of promoting a more resilient banking sector
B)To strengthen computer and network security within the U.S.federal government and affiliated parties by mandating yearly audits
C)To detect and prevent money laundering by requiring financial institutions to report certain transactions to government agencies.
D)To protect against identity theft by imposing disclosure requirements for businesses and government agencies that experience security breaches that might put the personal information of California residents at risk

Answer 2

C

Question 3

_____ is essential for any process that involves the handling of financial transactions so that fraud requires the collusion of two or more parties.

A)Separation of duties
B)Separation of process
C)Separation of hierarchy
D)Separation of analysis

Answer 3

A

Question 4

Which of the following protects against identity theft of California residents?

A)California Secrecy Act
B)California Senate Bill 1386
C)California Union Data Protection Directive
D)California Information Security Management Act

Question 5

Identify the purpose of the Foreign Corrupt Practices Act.

A)To govern the collection,use,and disclosure of personally identifiable information in the course of commercial transactions
B)To protect cardholder data and ensure that merchants and service providers maintain strict information security standards
C)To prevent certain classes of persons and entities from making payments to foreign government officials
D)To create international standards that strengthen global capital and liquidity rules with the goal of promoting a more resilient banking sector

Question 6

Identify the objective of the Gramm-Leach-Bliley Act.

A)To identify the U.S.taxpayers who hold financial assets in non-U.S.financial institutions and ensure that they agree to the U.S.tax obligations
B)To protect cardholder data and ensure that merchant and service providers maintain strict information security standards
C)To protect the privacy and security of individually identifiable financial information collected and processed by financial institutions
D)To prevent certain classes of persons and entities from making payments to foreign government officials in an attempt to obtain or retain business

Question 7

Which of the following is considered a primary goal of effective information technology (IT)governance?

A)Mitigating IT-related risks
B)Identifying appropriate IT opportunities
C)Ensuring smooth induction of IT in an organization
D)Complying with section 504 of the Sarbanes-Oxley Act

Question 8

Which of the following act creates international standards that strengthen global capital and liquidity rules?

A)Foreign corrupt practices Act
B)Gramm-Leach-Bliley Act
C)California Senate Bill 1386
D)Basel II Accord

Question 9

Which act identifies the U.S.taxpayers who hold financial assets in non-U.S.financial institutions and offshore accounts?

A)Foreign Account Tax Compliance Act
B)Foreign Corrupt Practices Act
C)U.S.Senate Bill Act
D)Basel II Tax Accord

Question 10

Which act strengthens computer and network security within the U.S.federal government?

A)Federal Union Data Protection Act
B)Federal Information Security Management Act
C)Federal Corrupt Practices Act
D)Federal-Bliley Act

Question 11

According to enlightened organizations,information technology (IT)governance is the responsibility of:

A)project management.
B)IT management.
C)human resource management.
D)executive management.

Question 12

Which of the following is true of mitigating information technology (IT)-related risks?

A)It delivers an organization's strategic goals
B)It aligns the business goals and objectives with IT project goals and objectives
C)It achieves results with a high degree of predictability
D)It embeds accountability and internal controls in an organization

Question 13

Interest in corporate governance has grown due to _____ scandals.

A)accounting
B)espionage
C)journalistic
D)plagiarism

Question 14

Which of the following is true of the Personal Information Protection and Electronic Documents Act (Canada)?

A)It governs the collection,use,and disclosure of personally identifiable information in the course of commercial transactions.
B)It protects against identity theft by imposing disclosure requirements for businesses and government agencies that experience security breaches.
C)It protects cardholder data and ensures that merchant and service providers maintains strict information security standards.
D)It strengthens computer and network security by mandating yearly audits.

Question 15

Identify the portfolio management in which a manager weighs the rate of return and balances it against the risks associated with each investment.

A)Human resource portfolio management
B)Sourcing portfolio management
C)Finance portfolio management
D)Marketing portfolio management

Question 16

Which of the following is an example of an organization's strategic goal?

A)Increased costs
B)Increased market share
C)Increased time to market
D)Decreased revenues

Question 17

Which of the following is true of European Union Data Protection Directive?

A)It strengthens computer and network security within the European federal government and affiliated parties (such as government contractors)by mandating yearly audits.
B)It protects the privacy of European Union citizens' personal information by placing limitations on sending such data outside of the European Union to areas that are deemed to have less than adequate standards for data security.
C)It identifies European taxpayers who hold financial assets in non-European financial institutions and offshore accounts so that they cannot avoid their tax obligations.
D)It protects against identity theft by imposing disclosure requirements for businesses and government agencies that experience security breaches that might put the personal information of European residents at risk.

Question 18

An organization's _____ and board of directors are responsible for governance.

A)executives
B)customers
C)retailers
D)clients

Question 19

Which of the following is essential to allow information technology projects to be aligned with business goals?

A)The projects must deliver expected business results on time and within budget.
B)The projects must embed accountability and internal controls in an organization.
C)The projects must be delayed to achieve the required quality.
D)The projects must go beyond the budget to maintain the quality.

Question 20

Information technology (IT)_____ is a framework that ensures that information technology decisions are made while taking into account the goals and objectives of the business.

A)wiki
B)acquisition
C)protocol
D)governance

Question 21

Which of the following is a method used to achieve the goals of information technology (IT)governance?

A)Strategic alignment
B)IT value delivery
C)Risk management
D)Operations management

Question 22

In the context of Information Technology Infrastructure Library,_____ provides a means for an information technology (IT)organization to measure and improve the service levels.

A)continual transition improvement
B)continual process improvement
C)service strategy
D)service operation

Question 23

Which of the following is true of internal control?

A)It renews the health insurance of the taxpayers.
B)It checks bank statements of the citizens for accuracy.
C)It verifies the taxpayers of a country for their income.
D)It protects an organization's resources.

Question 24

Which of the following is true of the Committee of Sponsoring Organizations (COSO)2013 framework?

A)It provides best practice recommendations on information security management for use by those responsible for initiating,implementing,or maintaining information security management systems.
B)It provides guidance on enterprise risk management,internal control,and fraud deterrence.
C)It provides a proven and practical framework for planning and delivering information technology-related services.
D)It provides a catalog of security and privacy controls for federal information systems and organizations and a process for selecting controls to protect organizational operations.

Question 25

Spivy Tech,a software firm,has decided to change one of its services to effectively meet its customer expectations.In the context of Information Technology Infrastructure Library (ITIL),identify the phase of the service life cycle that ensures that the changed services are designed effectively to meet customer expectations.

A)Service design
B)Service operation
C)Service strategy
D)Service transition

Question 26

In the context of Information Technology Infrastructure Library,_____ delivers information technology (IT)services on an ongoing basis while monitoring the overall quality of the service.

A)service design
B)service transition
C)service strategy
D)service operation

Question 27

Which of the following factors influences information technology (IT)related initiatives?

A)A company's internal control system
B)A company's balance sheet
C)Career growth of employees
D)The values of IT stakeholders

Question 28

In the Plan-Do-Check-Act (PDCA)model,identify the step that requires the improvement team to identify its target improvement area.

A)The Do step
B)The Check step
C)The Plan step
D)The Act step

Question 29

Which of the following best describes the service transition phase of the Information Technology Infrastructure Library (ITIL)?

A)It involves understanding who the IT customers are,the service offerings required to meet their needs,and the IT capabilities and resources required to develop and successfully execute these offerings.
B)It involves following the design to build,test,and move into production the services that will meet customer expectations.
C)It ensures that the new and/or changed services are designed effectively to meet customer expectations.
D)It provides a means for an IT organization to measure and improve the service levels,the technology,and the efficiency and effectiveness of processes used in the overall management of services.

Question 30

Identify the process that helps successful managers achieve high value from their investments in information technology (IT).

A)IT governance
B)IT collaboration
C)Corporate collaboration
D)Collaborative governance

Question 31

Which of the following provides a framework for information technology (IT)management and governance consisting of process descriptions,management guidelines,and models to assess maturity and capability for each process?

A)Committee of Sponsoring Organizations (COSO)2013
B)Information Infrastructure Library (ITIL)
C)Control Objectives for Information and Related Technology (COBIT)
D)International Standards Organization (ISO)27002

Question 32

Patrick,a senior manager,has decided to promote one of his team members as an associate mentor based on her skill and hard work.Which stage in the Plan-Do-Check-Act (PDCA)model corresponds to this scenario?

A)The Do step
B)The Check step
C)The Plan step
D)The Act step

Question 33

Which of the following is a goal of effective information technology (IT)governance?

A)Resource management
B)Risk management
C)Operations alignment
D)Strategic alignment

Question 34

_____ is a useful tool to improve the quality and measurability of information technology (IT)governance or to implement a system for improved regulatory compliance.

A)Control Objectives for Information and Related Technology (COBIT)
B)Information Technology Infrastructure Library (ITIL)
C)Committee of Sponsoring Organizations (COSO)
D)International Standards Organization (ISO)

Question 35

Which of the following frameworks provides information technology (IT)services based on a synthesis of the best ideas from international practitioners?

A)IT Infrastructure Library (ITIL)
B)Committee of Sponsoring Organizations (COSO)2013
C)Control Objectives for Information and Related Technology (COBIT)
D)International Standards Organization (ISO)27002

Question 36

_____ is a set of guidelines whose goal is to align information technology resources and processes with business objectives,quality standards,monetary controls,and security needs.

A)International Standards Organization (ISO)27002
B)Control Objectives for Information and Related Technology (COBIT)
C)Committee of Sponsoring Organizations (COSO)2013
D)Information Infrastructure Library (ITIL)

Question 37

_____ advocates that information technology services be aligned with the objectives of the business and support the core business processes.

A)The Human Resources Act
B)The finance directory
C)The Control Objectives for Information and Related Technology (COBIT)
D)The Information Technology Infrastructure Library (ITIL)

Question 38

_____ ensures that the new and/or changed services are modeled effectively to meet customer expectations.

A)Service design
B)Service operation
C)Service transition
D)Service strategy

Question 39

Which phase of the Information Technology Infrastructure Library (ITIL)involves understanding the service offerings required to meet the needs of the IT customers?

A)Service design
B)Service operation
C)Service strategy
D)Service transition

Question 40

Which of the following is an overview of the international standards organization (ISO)framework?

A)It provides guidance on enterprise risk management,internal control,and fraud deterrence.
B)It provides best practice recommendations on information security management for use by those responsible for initiating,implementing,or maintaining information security management systems.
C)It provides a proven and practical framework for planning and delivering information technology services.
D)It provides a catalog of security and privacy controls for federal information systems and organizations and a process for selecting controls to protect organizational operations.

Question 41

A _____ defines the people and procedures required to ensure timely and orderly resumption of an organization's essential,time-sensitive processes with minimal interruption.

A)business initiation plan
B)business valuation plan
C)business continuity plan
D)business improvement plan

Question 42

Which of the following is a recommended approach for data backup?

A)Allow employees to take copies of vital data home at the end of the work day.
B)Store the data in a building adjacent to the company.
C)Store all the data in an external disk and place it in the server room.
D)Use online databases to update and backup the data.

Question 43

Benchmarking the current process using the Control Objectives for Information and Related Technology (COBIT)framework is done in the _____ step of the Plan-Do-Check-Act model.

A)Plan
B)Do
C)Check
D)Act

Question 44

Gink Corporation,a multinational company,has several branches throughout the world.They have recently installed a new security mechanism in their California branch.However,they are not happy with the profit earned by that particular branch.If the results in the upcoming months are not fruitful,they might consider shutting down its operations to avoid loss of revenue.Which stage in the Plan-Do-Check-Act (PDCA)model corresponds to this scenario?

A)The Do step
B)The Check step
C)The Plan step
D)The Act step

Question 45

Which of the following best describes the role of a control group in the disaster recovery team?

A)It helps save lives and contain the impact of the disaster.
B)It assess the extent of the damage and decide if or when it may be safe to reenter the affected work area.
C)It recommends whether the disaster recovery plan needs to be put into effect or not.
D)It gathers and analyzes the data needed to make decisions and direct the work of the emergency response team and business recovery team.

Question 46

Which of the following disaster recovery teams provides direction and command during a disaster?

A)The emergency response group
B)The business continuity group
C)The control group
D)The business recovery group

Question 47

Identify the process in a disaster recovery plan that is responsible for contracts and payroll information.

A)Identify vital records and data
B)Define resources and actions to recover
C)Define emergency procedures
D)Conduct a business impact analysis

Question 48

_____ is the replication and hosting of physical or virtual servers and other necessary hardware and software by a third-party service provider to deliver information technology services in the event of a disaster.

A)Disaster recovery as a service (DRaaS)
B)Disaster recovery as an event (DRaaE)
C)Disaster recovery as a platform (DRaaPL)
D)Disaster recovery as a solution (DRaaSL)

Question 49

Which of the following is the effort made by an ordinarily prudent party to avoid harm to another party?

A)Business stake
B)Due diligence
C)Outsourcing
D)Internal control

Question 50

Which of the following best describes the "AA" priority business function of a firm?

A)This business function is extremely critical to the operation of the firm and cannot be unavailable for more than a few minutes without causing severe problems.
B)This business function is critical to the operation of the firm and cannot be unavailable for more than a few hours without causing severe problems.
C)This business function,while significant,can be unavailable for up to a few days without causing severe problems.
D)This business function can be unavailable for several days in times of a major disaster without causing major problems.

Question 51

Which of the following is considered a part of due diligence?

A)The scope of the Plan-Do-Check-Act (PDCA)model
B)Metrics and best practices of information technology (IT)related processes
C)A written and tested business continuity plan
D)Information security management

Question 52

The time within which a business function must be recovered before an organization suffers serious damage is known as the:

A)critical time objective.
B)business recovery time.
C)recovery time objective.
D)attrition recovery time.

Question 53

Which of the following best describes the ''AAA'' priority business function of a firm?

A)This business function,while significant,can be unavailable for up to a few days without causing severe problems.
B)This business function is critical to the operation of the firm and cannot be unavailable for more than a few hours without causing severe problems.
C)This business function is extremely critical to the operation of the firm and cannot be unavailable for more than a few minutes without causing severe problems.
D)This business function can be unavailable for several days in times of a major disaster without causing major problems.

Question 54

The scope of a full _____ addresses the health and safety of all workers.

A)business initiation plan
B)business valuation plan
C)business improvement plan
D)business continuity plan

Question 55

Ernsyl,an e-publishing firm,consists of 500 employees.However,the HR manger feels that they need to double their employee strength in the upcoming year to meet the needs of the future projects that are in pipeline.In the context of business functions,this scenario is an example of a:

A)"A" priority business function.
B)"AAA" priority business function.
C)"AA" priority business function.
D)"B" priority business function.

Question 56

Payroll is an example of a:

A)"A" priority business function.
B)"AAA" priority business function.
C)"AA" priority business function.
D)"B" priority business function.

Question 57

_____ defines the steps to be taken during a disaster and immediately following it.

A)Business impact analyses
B)Emergency procedures
C)Recovery time objective
D)Due diligences

Question 58

Which of the following specifies requirements to plan,establish,implement,operate,monitor,review,maintain,and continually improve a documented management system?

A)The International Standards Organizational standard ISO 22301:2012
B)The International Standards Organizational standard ISO 22313:2012
C)The International Standards Organizational standard ISO 22320:2011
D)The International Standards Organizational standard ISO 22323:2010

Question 59

Which of the following is an inexpensive yet safe way to backup vital data?

A)Allow employees to take backup copies of vital data home at the end of the work day.
B)Copy online databases to magnetic storage devices and ship them off-site.
C)Store the backup data in a building located near the company.
D)Use online databases to update and backup the data.

Question 60

In the _____ step of the Plan-Do-Check-Act model,the results of a change are measured.

A)Do
B)Check
C)Plan
D)Act

Question 61

The objective of the Foreign Account Tax Compliance Act is to prevent certain classes of persons and entities from making payments to foreign government officials.

Question 62

An earthquake relief team has arrived at an affected area of a company to assess the extent of damage.They recommend the immediate implementation of the disaster recovery plan as they feel that the impact of the earthquake was very high.In the context of disaster recovery teams,the earthquake relief team is an example of a(n)_____.

A)emergency response group
B)business recovery group
C)control group
D)business continuity group

Question 63

Define Control Objectives for Information and Related Technology (COBIT).What are the principles proposed by COBIT that guide the governance of information technology (IT)?

Question 64

Only information technology projects that are consistent with the business strategy and that support business goals and objectives should be considered for staffing and funding.

Question 65

The USA PATRIOT Act protects the interests of investors and consumers by requiring that the annual reports of public companies include an evaluation of the effectiveness of internal control over financial reporting.

Question 66

Define a disaster recovery plan.What are the various process involved in developing a disaster recovery plan?

Question 67

The information technology infrastructure library (ITIL)is used to standardize,integrate,and manage information technology (IT)service delivery.

Question 68

The disaster recovery plan must be tested in advance to ensure that it is effective and that people can execute it.

Question 69

Performance measurement is the process by which an organization achieves its information technology governance goals.

Question 70

Explain the need for a business continuity plan.

Question 71

The _____ team in most organizations includes members of the fire department,police department,and other first responders.

A)emergency response
B)control
C)business recovery
D)business continuity

Question 72

Information technology-related initiatives are simple and straightforward.

Question 73

The International Standards Organizational standard ISO 22301:2012 is applicable only to nonprofit organizations.

Question 74

A business continuity plan is to be implemented after the occurrence of an interruption in a service.

Question 75

Which of the following best describes the role of an emergency response team in the disaster recovery team?

A)They help save lives and contain the impact of the disaster.
B)They assess the extent of the damage and decide if or when it may be safe to reenter the affected work area.
C)They recommend whether the disaster recovery plan needs to be put into effect or not.
D)They gather and analyze the data needed to make decisions and direct the work of the emergency response team and business recovery team.

Question 76

The rise in the popularity of corporate governance is due to plagiarism scandals.

Question 77

Who receives additional training in crowd control to help workers evacuate from a work area?

A)Manager
B)Supervisor
C)Administrative officer
D)Floor warden

Question 78

Which group in the disaster recovery team decides when employees can reenter the affected work area after a disaster?

A)The emergency response group
B)The control group
C)The business recovery group
D)The business continuity group