Question 1

Core processes have a direct impact on an organization's customers,are major cost drivers,and are essential for providing services.

Accepted Answer

Core processes are essential for providing services to customers and often involve significant costs in an organization. Therefore, they have a direct impact on customers and are major cost drivers.

Question 2

The Statement on Standards for Attestation Engagements 16 (SSAE 16)is a regulation created by the Auditing Standards Board (ASB)of the American Institute of Certified Public Accountants (AICPA).What does it define?

Accepted Answer

SSAE 16 defines the method in which service companies must report on their compliance controls. It replaced the Statement on Auditing Standards No. 70 (SAS 70) and focuses on ensuring that service organizations have adequate internal controls over financial reporting.

Question 3

Who participates in the conflict resolution process for resolving any issues in an outsourcing agreement?

Accepted Answer

The service-level agreement manager is responsible for ensuring that both parties adhere to the agreed-upon terms and can facilitate the conflict resolution process. The other options listed may not necessarily be involved in the outsourcing agreement or have the appropriate knowledge and authority to resolve conflicts.

Question 4

The fundamental costs of doing business in a developing country are higher than those in a developed country.

Accepted Answer

Developing countries often have lower labor costs, reduced regulatory burdens, and incentives for foreign investment, which can result in lower fundamental costs of doing business compared to developed countries.

Question 5

Which of the following types of clouds is integrated through networking and is composed of both private and public clouds?

Accepted Answer

A hybrid cloud is a mix of private and public cloud services that are integrated through networking. It offers the benefits of both private and public clouds, with greater flexibility and functionality. Symmetric cloud, grid cloud, and asymmetric cloud are not relevant types of clouds in this context.

Question 6

A _____ is a high-level,summary document that defines both the services and the performance and availability levels at which those services will be provided by a service provider to an organization.

Accepted Answer

The description provided matches the definition of a service-level agreement (SLA). Option A (customer service agreement) and Option B (product-level contract) do not accurately describe the document mentioned in the question, and Option D (research and analysis service document) is not related to the topic of service level agreements.

Question 7

Which of the following challenges is faced by organizations that are moving toward the cloud computing environment?

Accepted Answer

Hidden costs are a common challenge faced by organizations that are moving toward the cloud computing environment. These costs may include additional expenses for data transfer, storage, and software licensing that were not originally anticipated. Flexible user support, less than expected downtime, and invisible system complexity are not typically seen as major challenges with cloud computing adoption.

Question 8

What does the Type 2 Statement on Standards for Attestation Engagements 16 (SSAE 16)evaluate?

Accepted Answer

Type 2 Statement on Standards for Attestation Engagements 16 (SSAE 16) evaluates the suitability of the design of the controls of a service provider over a period of time.

Question 9

Why was the International Standard on Assurance Engagements (ISAE)No.3402,Assurance Reports on Controls at a Service Organization developed?

Accepted Answer

The ISAE No.3402 was developed to provide an international assurance standard for public accountants to issue a report on controls at a service organization, which can be used by user organizations to evaluate their own internal controls over financial reporting. This standard helps to provide assurance to user organizations that their service provider has adequate controls in place to maintain the confidentiality, integrity, and availability of their data.

Question 10

Outsourcing service providers have a higher cost structure due to greater economies of scale,specialization,or expertise.

Accepted Answer

Outsourcing service providers often have a lower cost structure due to their economies of scale, specialization, and expertise, which allow them to offer services more efficiently and at a lower cost than an organization might be able to achieve in-house.

Question 11

Which of the following processes defines periodic formal reviews between the outsourcing company and its service provider and explicit escalation procedures in the event of a disagreement?

Accepted Answer

The process described here is part of the governance process, which includes periodic formal reviews and escalation procedures to ensure that the outsourcing relationship runs smoothly and effectively. A service-level agreement (SLA) is a specific document that outlines the expectations and requirements of the outsourcing contract, but it does not necessarily address governance processes. Smart sourcing is a general approach to outsourcing that emphasizes flexibility and strategic decision-making. A research and analysis process, while important in selecting a service provider, does not address ongoing governance and review processes.

Question 12

What does the Type 1 Statement on Standards for Attestation Engagements 16 (SSAE 16)report?

Accepted Answer

The Type 1 SSAE 16 report reports on the fairness of the presentation of management's description of a service organization's system at a specific point in time. It does not report on infrastructure costs or cloud computing integration issues. It also does not report on the suitability of the design of controls over a period of time, which would be covered in a Type 2 report.

Question 13

Which of the following technicians uses software to divide one physical server into a number of virtual machines,with each virtual machine capable of processing a set of data for users from a given organization?

Accepted Answer

A server administrator is responsible for managing and maintaining the physical servers, as well as dividing them into virtual machines using software such as virtualization software. The other options do not typically involve server virtualization.

Question 14

Which of the following cloud computing technologies separates a physical computing device into one or more devices,each of which can be easily used and managed to perform computing tasks?

Accepted Answer

Virtualization separates a physical computing device into one or more virtual devices, each of which can be easily used and managed to perform computing tasks. Personalization refers to tailoring a service or product to the individual needs or preferences of a user. Visualization refers to the creation of visual representations of data or information. Polymerization is not a cloud computing technology.

Question 15

The ability of information technology (IT)systems to manage themselves and adapt to changes in the computing environment,business policies,and operating objectives is known as _____.

Accepted Answer

Autonomic computing refers to the ability of IT systems to manage themselves and adapt to changes without human intervention. It involves building self-monitoring, self-healing, self-configuring, and self-optimizing capabilities into the computing infrastructure. Virtualization refers to the creation of a virtual version of something, such as a virtual machine or virtual network. Visualization refers to the graphical representation of data or information. Smart sourcing refers to the process of identifying the most appropriate sourcing strategy for a particular business need.

Question 16

Which of the following functions is addressed by autonomic computing?

Accepted Answer

Autonomic computing focuses on self-managing systems that can configure, optimize, heal, and protect themselves without human intervention. Self-configuring is one of the key functions addressed by autonomic computing. Self-accounting, self-damaging, and self-producing are not functions addressed by autonomic computing.

Question 17

Identify the goal of autonomic computing.

Accepted Answer

Autonomic computing aims to create self-managing systems that are able to adjust and optimize themselves based on changing conditions without requiring human intervention. This involves reducing the complexity of the system and making it transparent to the end user, so they can interact with it without needing to understand the underlying processes.

Question 18

Identify the goal of a service-level agreement.

Accepted Answer

The goal of a service-level agreement (SLA) is to manage expectations between the customer and service provider by creating a common understanding about services, priorities, and responsibilities. SLAs outline the level of service the provider will deliver, the metrics used to measure the service, and the obligations of both parties. SLAs ensure that both parties' expectations are clear, and if there are any discrepancies, they can be addressed before the service is delivered.

Question 19

Which of the following strategies is based on analyzing the work to be done,including its associated current processes and the level of effectiveness and resources required?

Accepted Answer

Smart sourcing involves analyzing the work to be done, including the current processes and resources required, to determine the most effective outsourcing strategy. This strategy aims to align business objectives with outsourcing goals. Outsourcing governance process, outsourcing contract, and service-level agreement are all components of the outsourcing process but do not involve analyzing the work to be done.

Question 20

Identify the goal of outsourcing governance procedures.

Accepted Answer

The goal of outsourcing governance procedures is to ensure that the outsourcing initiative succeeds, even as personnel, business needs, and operating conditions change. This involves establishing clear communication channels and ensuring that the outsourced services meet the desired quality and performance standards. The other options do not accurately describe the goal of outsourcing governance procedures.

Quiz 4: Business Process and It Outsourcing