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NEW QUESTION 22
Both users and management approve the initial proposal, design specifications, conversion plan, and testing plan of an information system. This is an example of:

A. Data security controls.B. Hardware controls.C. Computer operations controls.D. Implementation controls.

Answer: D

Explanation:
Implementation controls occur in the systems development process at various points to ensure that implementation is properly controlled and managed.

 

NEW QUESTION 23
A company began work on a long-term construction contract in Year 1. The contract price was US $3,000,000. Year-end information related to the contract is as follows

If the company uses the percentage-of-completion method of accounting for this contract, the profit to be recognized in Year 1 is:

A. US $(100,000) B. US $(350,000)C. US $(100,000)D. US $(200,000)

Answer: B

Explanation:
When the outcome of a contract can be reasonably estimated, the percentage-ofcompletion method for estimated recognizes revenue based on the stage of completion of the contract. One typical method for estimating the stage of completion is the calculation of ratio of the contract costs incurred to date to the estimated total cost. The percentage-ofcompletion at year-end on the cost-to-cost basis is 35%US $7150,1509. The profit for Year 1 is the anticipated profit on the contract times the completion percentage. Thus, profit for Year 1 is US $350,000 [($3,000,000 - $2,000,000) x 35%].

 

NEW QUESTION 24
Which of the following describes the most appropriate set of tests for auditing a workstation's logical access controls?

A. Review the passwords of those who attempted unsuccessfully to access the workstation and the log of their activity.B. Review the list of people who attempted to access the workstation and failed, as well as error messages.C. Review the list of people with access badges to the room containing the workstation and a log of those who accessed the room.D. Review the password length, frequency of change, and list of users for the workstation's login process.

Answer: D

 

NEW QUESTION 25
If, in addition to the estimated profits, management of the bank assesses the probabilities of high, medium, and low demands to be 0.3, 0.4 and 0.3, respectively, what is the expected opportunity loss from selecting location L4?

A. US$5.50B. US$7.50C. US$5.00D. US$7.90

Answer: A

Explanation:
First, the opportunity loss matrix must be prepared:

C:\Documents and Settings\usernwz1\Desktop\1.PNG The expected opportunity loss from selecting location L4 is thus US $5.50 [($3 x 0.3) + ($4
x 0.4) + ($10 x)

 

NEW QUESTION 26
An organization with global headquarters in the United States has subsidiaries in eight other nations. If the organization operates with an ethnocentric attitude, which of the following statements is true?

A. Standards used for evaluation and control are determined at local subsidiaries, not set by headquarters.B. There is a significant amount of collaboration between headquarters and subs diaries.C. Orders, commands, and advice are sent to the subsidiaries from headquarters.D. Poop o of local nationality are developed for the best positions within their own country.

Answer: C

 

NEW QUESTION 27
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