CGA CGA Information Technology & Systems 1 — Questions and Answers
Question 1: Which type of IT control is designed to prevent errors or unauthorized access before they occur?
- Detective control
- Corrective control
- Preventive control (Correct answer)
- Compensating control
Correct answer: Preventive control
Preventive controls, such as access passwords and input validation, are designed to stop errors or unauthorized actions before they happen.
Question 2: In an ERP system, which of the following represents a key general IT control?
- Segregation of duties within financial reporting
- Logical access controls restricting system entry to authorized users (Correct answer)
- Monthly bank reconciliations
- Physical inventory counts
Correct answer: Logical access controls restricting system entry to authorized users
Logical access controls — such as passwords, user IDs, and permission levels — are fundamental general IT controls that protect the integrity of an ERP system.
Question 3: What is the primary risk of inadequate segregation of duties in an accounting system?
- Slower transaction processing
- Increased potential for fraud and undetected errors (Correct answer)
- Higher system maintenance costs
- Reduced reporting accuracy due to duplication
Correct answer: Increased potential for fraud and undetected errors
When one person controls multiple stages of a transaction (e.g., authorization, recording, and custody), the risk of fraud and undetected errors increases significantly.
Question 4: A business continuity plan (BCP) primarily ensures that:
- All IT systems are upgraded annually
- Critical business functions can continue after a disruptive event (Correct answer)
- Employee data is backed up daily
- Cybersecurity threats are eliminated
Correct answer: Critical business functions can continue after a disruptive event
A BCP outlines how an organization maintains essential operations and recovers from disruptions such as natural disasters or system failures.
Question 5: Which of the following best describes a data warehouse?
- A system for processing real-time transactions
- A centralized repository of integrated data used for analysis and reporting (Correct answer)
- A backup of the operational database
- A tool for encrypting sensitive financial data
Correct answer: A centralized repository of integrated data used for analysis and reporting
A data warehouse consolidates data from multiple sources into a single, integrated system optimized for analytical queries and business intelligence reporting.
Question 6: What does the acronym CAAT stand for in auditing?
- Computer-Assisted Audit Techniques (Correct answer)
- Certified Accounting and Assurance Tool
- Cost Analysis and Audit Testing
- Computerized Application of Audit Trials
Correct answer: Computer-Assisted Audit Techniques
CAATs (Computer-Assisted Audit Techniques) are software tools and methods auditors use to directly test and analyze electronic data.
CGA CGA Information Technology & Systems 1
Which type of IT control is designed to prevent errors or unauthorized access before they occur?