Prelim Exam: Computerized Information Systems (CIS)
Based on 'Information Technology Auditing' by James Hall (Chapters 1-3)
Instructions: Choose the best answer for each question. Mark your answers on the answer sheet
provided.
1. What is the primary purpose of an external audit?
a) To detect and prevent fraud
b) To ensure company profitability
c) To provide an independent opinion on financial statements
d) To prepare financial reports
Correct Answer: C
2. Which of the following best describes an IT audit?
a) Evaluating management policies
b) Assessing IT security and integrity
c) Checking tax compliance
d) Reviewing customer satisfaction
Correct Answer: B
3. What is the main focus of an IT audit?
a) Financial reporting
b) IT department efficiency
c) Security and reliability of IT systems
d) Marketing strategies
Correct Answer: C
4. Who is responsible for establishing internal controls?
a) External auditors
b) Management
c) IT consultants
d) Government regulators
Correct Answer: B
5. Which type of audit focuses on regulatory compliance?
, a) Financial audit
b) Operational audit
c) IT audit
d) Compliance audit
Correct Answer: D
6. What is the main role of IT governance?
a) Maximizing profits
b) Ensuring IT aligns with business goals
c) Controlling financial reporting
d) Training IT employees
Correct Answer: B
7. Which framework is used for IT governance?
a) GAAP
b) COSO
c) COBIT
d) SEC
Correct Answer: C
8. What is the primary function of IT controls?
a) Increasing network speed
b) Ensuring IT security and integrity
c) Eliminating financial audits
d) Replacing manual processes
Correct Answer: B
9. What does segregation of duties prevent?
a) Employee errors
b) Fraud and unauthorized access
c) Network outages
d) IT cost overruns
Correct Answer: B
10. A firewall is used to?
Based on 'Information Technology Auditing' by James Hall (Chapters 1-3)
Instructions: Choose the best answer for each question. Mark your answers on the answer sheet
provided.
1. What is the primary purpose of an external audit?
a) To detect and prevent fraud
b) To ensure company profitability
c) To provide an independent opinion on financial statements
d) To prepare financial reports
Correct Answer: C
2. Which of the following best describes an IT audit?
a) Evaluating management policies
b) Assessing IT security and integrity
c) Checking tax compliance
d) Reviewing customer satisfaction
Correct Answer: B
3. What is the main focus of an IT audit?
a) Financial reporting
b) IT department efficiency
c) Security and reliability of IT systems
d) Marketing strategies
Correct Answer: C
4. Who is responsible for establishing internal controls?
a) External auditors
b) Management
c) IT consultants
d) Government regulators
Correct Answer: B
5. Which type of audit focuses on regulatory compliance?
, a) Financial audit
b) Operational audit
c) IT audit
d) Compliance audit
Correct Answer: D
6. What is the main role of IT governance?
a) Maximizing profits
b) Ensuring IT aligns with business goals
c) Controlling financial reporting
d) Training IT employees
Correct Answer: B
7. Which framework is used for IT governance?
a) GAAP
b) COSO
c) COBIT
d) SEC
Correct Answer: C
8. What is the primary function of IT controls?
a) Increasing network speed
b) Ensuring IT security and integrity
c) Eliminating financial audits
d) Replacing manual processes
Correct Answer: B
9. What does segregation of duties prevent?
a) Employee errors
b) Fraud and unauthorized access
c) Network outages
d) IT cost overruns
Correct Answer: B
10. A firewall is used to?
