IT Governance

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CPA Business Environment and Concepts (BEC) › IT Governance

Questions 1 - 6
1

A research-based firm in the medical field could use each of the following Internet-based tools for collaboration except:

An email application

Electronic data interchange

Groupware systems

Videoconferencing

Explanation

EDI is a computer to computer exchange of business transaction documents. It is not used for collaboration between humans.

2

Engaging in traditional electronic data interchange (EDI) provides which of the following benefits?

Added flexibility to entice new partners

Guaranteed payments from customers

Enhanced audit trails

Reduced likelihood of stockout costs

Explanation

EDI is the exchange of business transaction documents from one computer to another. This is much more efficient than paper exchanges and reduces the likelihood of stockout costs.

3

All of the following statements regarding project risk are correct except:

Risk is inherent in every aspect of the project management process

There is always a tradeoff between risk and reward

Planning for risk management includes risk assessment

Risk control includes anticipating everything that could go wrong throughout the project plans

Explanation

Anticipating everything that could go wrong throughout the project plans is a part of risk assessment, not risk control.

4

A manufacturer that wants to improve its staging process compares its procedures against the check-in process for a major airline. Which of the following tools is the manufacturer using?

Benchmarking

Statistical process control

Total quality management

Economic value added

Explanation

Benchmarking is a process where a company compares itself to peers to measure performance and to understand where improvements can be made in its processes.

5

Which of the following statements is correct regarding IT governance?

IT goals should be independent of strategic goals

IT governance requires that the Control Objectives for Information and related Technology (COBIT) framework be adopted and implemented

A primary goal of IT governance is to balance risk versus return over IT and its processes.

IT governance is an appropriate issues for organizations at the level of the board of directors only.

Explanation

Risk management is one of the primary goals of IT governance, as the inevitable risks inherent in IT must always be balanced against the potential returns associated with an IT infrastructure.

6

An IT governance framework should answer all of the following questions except:

How the IT department functions

What key metrics does management need

What does IT return to the business

Will the IT system be asthetically pleasing

Explanation

IT governance is more focused on the operations and implementation of IT, rather than cosmetic approaches to systems.

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