Certified Internal Auditor - Part 3, Business Analysis and Information Technology v1.0

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Exam contains 315 questions

An organization uses a database management system (DBMS) as a repository for data. The DBMS, in turn, supports a number of end-user developed applications which were created using fourth-generation programming languages. Some of the applications update the database. Which of the following is the most important control related to the integrity of the data in the database?

  • A. End users have their read-only applications approved by the information systems department before accessing the database.
  • B. Concurrency update controls are in place.
  • C. End-user applications are developed on personal computers before being implemented on the mainframe.
  • D. A hierarchical database model is adopted so that multiple users can be served at the same time.


Answer : B

Which of the following is not a method for implementing a new application system?

  • A. Direct cutover.
  • B. Parallel.
  • C. Pilot.
  • D. Test.


Answer : D

One change control function that is required in client/server environments, but is not required in mainframe environments, is to ensure that:

  • A. Program versions are synchronized across the network.
  • B. Emergency move procedures are documented and followed.
  • C. Appropriate users are involved in program change testing.
  • D. Movement from the test library to the production library is controlled.


Answer : A

A key advantage of developing a computer application by using the prototyping approach is that it:

  • A. Does not require testing for user acceptance.
  • B. Allows applications to be portable across multiple system platforms.
  • C. Is less expensive since it is self-documenting.
  • D. Better involves users in the design process.


Answer : D

Which of the following is a disadvantage of selecting a commercial software package rather than developing an application internally?

  • A. Lack of flexibility.
  • B. Incompatibility with client/server technology.
  • C. Employee resistance to change.
  • D. Inadequate technical support.


Answer : A

A software that translates hypertext markup language (HTML) documents and allows a user to view a remote web page is called:

  • A. A transmission control protocol/Internet protocol (TCP/IP).
  • B. An operating system.
  • C. A web browser.
  • D. A web server.


Answer : C

The first step in determining product price is:

  • A. Determining the cost of the product.
  • B. Developing pricing objectives.
  • C. Evaluating prices set by the competitors.
  • D. Selecting a pricing method.


Answer : B

The activity that involves a trial run of a product in a typical segment of the market before proceeding to a national launch is referred to as:

  • A. Test marketing
  • B. Experimentation
  • C. Segmentation
  • D. Positioning


Answer : A

Which of the following best describes the concept of relevant cost?

  • A. A future cost that is the same among alternatives.
  • B. A future cost that differs among alternatives.
  • C. A past cost that is the same among alternatives.
  • D. A past cost that differs among alternatives.


Answer : B

Which of the following statements pertaining to a market skimming pricing strategy is not true?

  • A. The strategy is favored when unit costs fall with the increase in units produced.
  • B. The strategy is favored when buyers are relatively insensitive to price increases.
  • C. The strategy is favored when there is insufficient market capacity and competitors cannot increase market capacity.
  • D. The strategy is favored when high price is perceived as high quality.


Answer : A

Which of the following statements is true regarding the use of public key encryption to secure data while it is being transmitted across a network?

  • A. Both the key used to encrypt the data and the key used to decrypt the data are made public.
  • B. The key used to encrypt the data is kept private but the key used to decrypt the data is made public.
  • C. The key used to encrypt the data is made public but the key used to decrypt the data is kept private.
  • D. Both the key used to encrypt the data and the key used to decrypt the data are made private.


Answer : C

The market price is the most appropriate transfer price to be charged by one department to another in the same organization for a service provided when:

  • A. There is an external market for that service.
  • B. The selling department operates at 50 percent of its capacity.
  • C. The purchasing department has more negotiating power than the selling department.
  • D. There is no external market for that service.


Answer : A

Which of the following is a type of network in which an organization permits specific users (such as existing customers) to have access to its internal network through the Internet by building a virtual private network?

  • A. Intranet.
  • B. Extranet.
  • C. Digital subscriber line.
  • D. Broadband.


Answer : B

During the last year, an organization had an opening inventory of $300,000, purchases of $980,000, sales of $1,850,000, and a gross margin of 40 percent. What is the closing inventory if the periodic inventory system is used?

  • A. $170,000
  • B. $280,000
  • C. $300,000
  • D. $540,000


Answer : A

Which of the following describes the free trade zone in an e-commerce environment?

  • A. Zone that separates an organization's servers from outside forces.
  • B. Area in which messages are scrutinized to determine if they are authorized.
  • C. Area where communication and transactions occur between trusted parties.
  • D. Zone where data is encrypted, users are authenticated, and user traffic is filtered.


Answer : C

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Exam contains 315 questions

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