ACY54 Quiz #2

The same internal control objectives apply to manual and computer-based information systems.

• TRUE

• FALSE

The Sarbanes-Oxley Act requires the audit committee to hire and oversee the external auditors.

• TRUE

• FALSE

Substantive testing techniques provide information about the accuracy and completeness of an application's processes.

• TRUE

• FALSE

A qualified opinion on management’s assessment of internal controls over the financial reporting system necessitates a qualified opinion on the financial statements.

• TRUE

• FALSE

Preventive controls are passive techniques designed to reduce fraud.

• TRUE

• FALSE

A database administrator is responsible for the receipt, storage, retrieval, and custody of data files.

• TRUE

• FALSE

Virtualization is the technology that unleased cloud computing.

• TRUE

• FALSE

An advantage of distributed data processing is that redundant tasks are greatly eliminated.

• TRUE

• FALSE

The database administrator should be separated from systems development.

• TRUE

• FALSE

Transaction cost economics (TCE) theory suggests that firms should outsource specific noncore IT assets

• TRUE

• FALSE