1.

It serves as the primary guideline for allocating scarce resources throughout the firm and keeping the organization headed
in a profitable direction.
a. IT governance
b. Strategic plan
c. Mission and vision
d. Company policy

2. The following are the participants in systems development, except:

a. End users
b. Management
c. Accountants/auditors
d. System professionals

3. Big bang implementation is when

a. new application is placed into production alongside the existing application and both are used to simultaneously
process live data
b. the old system is ceased from using and immediately begins operating the new system
c. relatively small group of users are identified to first use the new system before placing it into use
d. none of the above

4. Parallel implementation is when

a. new application is placed into production alongside the existing application and both are used to simultaneously
process live data
b. the old system is ceased from using and immediately begins operating the new system
c. relatively small group of users are identified to first use the new system before placing it into use
d. none of the above

5. Big bang implementation is when

a. new application is placed into production alongside the existing application and both are used to simultaneously
process live data
b. the old system is ceased from using and immediately begins operating the new system
c. relatively small group of users are identified to first use the new system before placing it into use
d. none of the above

6. In project development, monitoring of activities and use of benchmarks, milestones and deliverables to track progress are
done under what phase?
a. First phase
b. Second phase
c. Third phase
d. Fourth phase

7. In fourth phase
a. the specific sequencing and timing of each activity and associated resources are scheduled
b. it involves planning, setting time, scope and cost parameters for the entire project
c. controlling and development of specific actions aimed at keeping a project moving forward in the most efficient are
done
d. project manager should obtain client acceptance, release and evaluate project personnel, identify and reassign
remaining project assets, consider a post-project evaluation and chronicle the history of the project
2
8. Below are the roles of a project manager, except:
a. Overall Responsible for the project
b. Should be the sole responsible in planning the project
c. Should have a great deal of experience in the domain area and skill at managing projects
d. Should work with representatives from senior management, the IT staff, and affected users in planning and executing
the project

9. IT function scorecard includes

a. Company’s mission and vision
b. Project plan and budget
c. Operational performance
d. IT risks

10. All are important policy areas of IT function, except:

a. Organizational
b. Hardware
c. Contingency
d. Risks

11. Information systems acquisition can be made through

a. In-house development
b. Commercial systems
c. Either a or b
d. Neither a nor b

12. The following are types of commercial systems, except:

a. General accounting system
b. Special purpose system
c. Turnkey systems
d. Extreme programming system

13. This serves as the foundation for setting an explicit IT strategy, which details how the IT Function will achieve its objectives
through its organizational structure, relationships with others and IT configurations
a. IT function
b. IT governance
c. IT objective
d. IT controls

14. Strategy
a. Represents the guiding light for developing a set of objectives
b. Support the mission and objectives of the organization
c. Is used to develop a set of policies
d. All of the above

15. Which of the following statements is/are correct?

I. Information technology plans can be incongruent with company plans
II. Long term planning is one of the most effective means of minimizing the risk that organizational resources will be used
in ways that are congruent with the company’s overall goals and objectives
a. Both statements
b. Only statement I
c. Only statement II
d. None of the statements

16. Cultural feasibility is achieved when

a. The current, affordable and reliable technology can be reasonably applied to the project
b. The project can be justified on an economic basis considering the start-up capital, expenses, revenues, and investor
income and disbursements
c. The scientific as well as ethical, behavioural, and social issues do not affect the project development
d. None of the above

17. Technical feasibility is achieved when

a. The necessary skills, such as intellectual skills, are available in-house or outsourced
b. The project can be justified on an economic basis considering the start-up capital, expenses, revenues, and investor
income and disbursements
c. The scientific as well as ethical, behavioural, and social issues do not affect the project development
d. None of the above

18. Financial feasibility is achieved when

a. The necessary skills, such as intellectual skills, are available in-house or outsourced
b. The project can be justified on an economic basis considering the start-up capital, expenses, revenues, and investor
income and disbursements
c. The scientific as well as ethical, behavioural, and social issues do not affect the project development
d. None of the above

19. Information systems development proposal

I. Formally documents the reasons why the project should be considered and how it maps to the strategic plan
II. Is responsibility by the project manager only
III. Reviewed by the steering committee

a. All statements are correct

b. Only 1 statement is correct
c. Only 2 statements are correct
d. All statements are incorrect

20. All are implementation issues, except

a. Affected Parties are Not Involved
b. Work Breakdown Structure
c. Training and Educational Programs
d. Formal Change Management Policy

21. What is the order of a coherent IT planning process?

I. Strategy
II. Policies
III. Mission
IV. Objectives
V. Vision
a. IV,V,III,II,I
b. V,III,IV,I,II
c. V,III,IV,II,I
d. IV,V,III,I,II

22. All are IT risks, except:

a. Business risk
b. Continuity risk
c. Privacy risk
d. Security risk

23. Arrange the risk management process in order.

I. Identify IT risks
II. Identify IT controls
III. Document IT controls
IV. Assess IT risks

a. I,IV,II,III
b. I,II,III,IV
c. II,III,I,IV
d. II,I,III,IV

24. It is the likelihood that an organization will not achieve its business goals and objectives
a. Business risk
b. Audit risk
c. Objective risk
d. Security risk

25. Which of the following is an external factor of a business risk?

a. Labor disputes
b. Equipment failures
c. Management fraud
d. New competitor in the market place

26. Which of the following statements is/are correct?

I. Managers and auditors strive to balance the risk, rather than eliminate them
II. IT makes business more efficient at the same time riskier

a. Both statements
b. Only statement I
c. Only statement II
d. None of the statements

27. Audit risk is

a. The likelihood that an organization’s external auditor makes a mistake when issuing an opinion attesting to the fairness of
its financial statements.
b. That an external auditor fails to uncover a material error or fraud.
c. Only A is correct
d. Both A and B are correct
28. The audit risk model includes all, except:
a. Inherent
b. Residual
c. Control
d. detection

29. Statement I: Inherent risk, control risk and detection risk are independent from each other.
Statement II: Auditors can reduce risks to zero by managing risks at an acceptable level and in a cost-effective manner.

a. Both statements are true

b. Only statement I is true
c. Only statement II is true
d. Both statements are false

30. Security risk

a. Includes risk associated with an information system’s availability and backup and recovery
b. Ensures that in case of interruptions, the procedures are available to restore data and operations.
c. Includes risk associated with data access and integrity
d. All of the above