CA Foundation Business Economics Questions 2023 - Part 32
Fri, 03 Mar 2023
1. An IT steering committee should review information systems PRIMARILY to assess:
A) whether IT processes support business requirements.
B) if proposed system functionality is adequate
C) the stability of existing software.
D) the complexity of installed technology.
2. The MOST likely effect of the lack of senior management commitment to IT strategic planning is:
A) a lack of investment in technology.
B) a lack of a methodology for systems development.
C) technology not aligning with the organization's objectives.
D) an absence of control over technology contracts.
3. Which of the following is a function of an IS steering committee?
A) Monitoring vendor-controlled change control and testing
B) Ensuring a separation of duties within the information's processing environment
C) Approving and monitoring major projects, the status of IS plans and budgets
D) Liaising between the IS department and the end users
4. An IS steering committee should:
A) include a mix of members from different departments and staff levels.
B) ensure that IS security policies and procedures have been executed properly.
C) have formal terms of reference and maintain minutes of its meetings.
D) be briefed about new trends and products at each meeting by a vendor.
5. Involvement of senior management is MOST important in the development of:
A) strategic plans.
B) IS policies.
C) IS procedures.
D) standards and guidelines.
A) whether IT processes support business requirements.
B) if proposed system functionality is adequate
C) the stability of existing software.
D) the complexity of installed technology.
2. The MOST likely effect of the lack of senior management commitment to IT strategic planning is:
A) a lack of investment in technology.
B) a lack of a methodology for systems development.
C) technology not aligning with the organization's objectives.
D) an absence of control over technology contracts.
3. Which of the following is a function of an IS steering committee?
A) Monitoring vendor-controlled change control and testing
B) Ensuring a separation of duties within the information's processing environment
C) Approving and monitoring major projects, the status of IS plans and budgets
D) Liaising between the IS department and the end users
4. An IS steering committee should:
A) include a mix of members from different departments and staff levels.
B) ensure that IS security policies and procedures have been executed properly.
C) have formal terms of reference and maintain minutes of its meetings.
D) be briefed about new trends and products at each meeting by a vendor.
5. Involvement of senior management is MOST important in the development of:
A) strategic plans.
B) IS policies.
C) IS procedures.
D) standards and guidelines.
1. Right Answer: A
Explanation: The role of an IT steering committee is to ensure that the IS department is in harmony with the organization's mission and objectives. To ensure this, the committee must determine whether IS processes support the business requirements. Assessing proposed additional functionality and evaluating software stability and the complexity of technology are too narrow in scope to ensure that IT processes are, in fact, supporting the organization's goals.
2. Right Answer: C
Explanation: A steering committee should exist to ensure that the IT strategies support the organization's goals. The absence of an information technology committee or a committee not composed of senior managers would be an indication of a lack of top-level management commitment. This condition would increase the risk that IT would not be aligned with the organization's strategy.
3. Right Answer: C
Explanation: The IS steering committee typically serves as a general review board for major IS projects and should not become involved in routine operations; therefore, one of its functions is to approve and monitor major projects, the status of IS plans and budgets. Vendor change control is an outsourcing issue and should be monitored by IS management. Ensuring a separation of duties within the information's processing environment is an IS management responsibility. Liaising between the IS department and the end users is a function of the individual parties and not a committee.
4. Right Answer: C
Explanation: It is important to keep detailed steering committee minutes to document the decisions and activities of the IS steering committee, and the board of directors should be informed about those decisions on a timely basis. Choice A is incorrect because only senior management or high-level staff members should be on this committee because of its strategic mission. Choice B is not a responsibility of this committee, but the responsibility of the security administrator. Choice D is incorrect because a vendor should be invited to meetings only when appropriate.
5. Right Answer: A
Explanation: Strategic plans provide the basis for ensuring that the enterprise meets its goals and objectives. Involvement of senior management is critical to ensuring that the plan adequately addresses the established goals and objectives. IS policies, procedures, standards and guidelines are all structured to support the overall strategic plan.
Explanation: The role of an IT steering committee is to ensure that the IS department is in harmony with the organization's mission and objectives. To ensure this, the committee must determine whether IS processes support the business requirements. Assessing proposed additional functionality and evaluating software stability and the complexity of technology are too narrow in scope to ensure that IT processes are, in fact, supporting the organization's goals.
2. Right Answer: C
Explanation: A steering committee should exist to ensure that the IT strategies support the organization's goals. The absence of an information technology committee or a committee not composed of senior managers would be an indication of a lack of top-level management commitment. This condition would increase the risk that IT would not be aligned with the organization's strategy.
3. Right Answer: C
Explanation: The IS steering committee typically serves as a general review board for major IS projects and should not become involved in routine operations; therefore, one of its functions is to approve and monitor major projects, the status of IS plans and budgets. Vendor change control is an outsourcing issue and should be monitored by IS management. Ensuring a separation of duties within the information's processing environment is an IS management responsibility. Liaising between the IS department and the end users is a function of the individual parties and not a committee.
4. Right Answer: C
Explanation: It is important to keep detailed steering committee minutes to document the decisions and activities of the IS steering committee, and the board of directors should be informed about those decisions on a timely basis. Choice A is incorrect because only senior management or high-level staff members should be on this committee because of its strategic mission. Choice B is not a responsibility of this committee, but the responsibility of the security administrator. Choice D is incorrect because a vendor should be invited to meetings only when appropriate.
5. Right Answer: A
Explanation: Strategic plans provide the basis for ensuring that the enterprise meets its goals and objectives. Involvement of senior management is critical to ensuring that the plan adequately addresses the established goals and objectives. IS policies, procedures, standards and guidelines are all structured to support the overall strategic plan.
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