Test Bank Ch06 - Chapter 6 MULTIPLE CHOICE 1. What is one...

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Chapter 6 MULTIPLE CHOICE 1. What is one reason why AIS threats are increasing? a) LANs and client/server systems are easier to control than centralized, mainframe systems. b) Many companies do not realize that data security is crucial to their survival. c) Computer control problems are often overestimated and overly emphasized by management. d) Many companies believe that protecting information is a strategic requirement. 2. Which of the following is not a reason for the increase in security problems for AIS? a) Confidentiality issues caused by interlinked inter-company networks b) Difficult to control distributed computing networks c) Increasing efficiency resulting from more automation d) Increasing numbers of information systems and users 3. 4. One reason why many organizations do not adequately protect their systems is because a) control problems may be overestimated by many companies. b) productivity and cost cutting cause management to forgo implementing and maintaining internal controls. c) control technology has not yet been developed. d) all of the above 5. Any potential adverse occurrence or unwanted event that could be injurious to either the AIS or the organization is referred to as a(n) a) threat. b) exposure. c) risk. d) phenomenon. 6. The potential dollar loss that could result if an unwanted event occurs is called a(n) a) threat. b) exposure. c) risk. d) extraordinary loss. 7. The likelihood that an adverse or unwanted event could occur is referred to as a(n) a) threat. b) exposure. c) risk. d) loss. 8. Accountants must try to protect the AIS from threats. Which of the following would be a measure that should be taken? a) take a proactive approach to eliminate threats b) detect threats that do occur
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c) correct and recover from threats that do occur d) All of the above are proper measures for the accountant to take. 9. The plan of organization that a business uses to safeguard assets, provide accurate and reliable information, and promote and improve operational efficiency is known as a) a phenomenon. b) internal control. c) an AIS threat. d) a preventive control. 10. Safeguarding assets is one of the primary purposes of internal control. Which of the following is not one of the other primary purposes? a) providing accurate and reliable accounting records b) promoting operational efficiency c) ensuring that no fraud has occurred d) encouraging adherence to management policies 11. Internal control is often referred to as a(n) __________, because it permeates an organization's operating activities and is an integral part of basic management activities. a) event b) activity c) process d) system 12. Which of the following control classifications does not fit with the others listed below? a)
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Test Bank Ch06 - Chapter 6 MULTIPLE CHOICE 1. What is one...

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