IT Governance
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CPA Auditing and Attestation (AUD) › IT Governance
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.
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.
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.
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.
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.
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.