chapter 8

Accounting Information Systems, 12e (Romney/Steinbart) Chapter 8 Information Systems Controls for System ReliabilityPart 1: Information Security 1) The Trust Services Framework reliability principle that states that users must be able to enter, update, and retrieve data during agreed-upon times is known as A) availability. B) security. C) maintainability. D) integrity. Answer: A Page Ref: 221 Objective: Learning Objective 1 Difficulty : Easy AACSB: Analytic 2) Which of the following is not a useful control procedure to control access to system outputs? A) Allowing visitors to move through the building without supervision B) Coding reports to reflect their importance C) Requiring employees to log out of applications when leaving their desk D) Restricting access to rooms with printers Answer: A Page Ref: 229 Objective: Learning Objective 3 Difficulty : Easy AACSB: Analytic 3) According to the Trust Services Framework, the reliability principle of integrity is achieved when the system produces data that A) is available for operation and use at times set forth by agreement. B) is protected against unauthorized physical and logical access. C) can be maintained as required without affecting system availability, security, and integrity. D) is complete, accurate, and valid. Answer: D Page Ref: 221 Objective: Learning Objective 1 Difficulty : Easy AACSB: Analytic 4) Which of the following is not one of the three fundamental information security concepts? A) Information security is a technology issue based on prevention. B) Security is a management issue, not a technology issue. C) The idea of defense-in-depth employs multiple layers of controls. D) The time-based model of security focuses on the relationship between preventive, detective and corrective controls. Answer: A Page Ref: 222-224 Objective: Learning Objective 2 Difficulty : Easy AACSB: Analytic 1 Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall

5) Which of the following is not one of the essential criteria for successfully implementing each of the principles that contribute to systems reliability, as discussed in the Trust Services Framework? A) Developing and documenting policies B) Effectively communicating policies to all outsiders C) Designing and employing appropriate control procedures to implement policies D) Monitoring the system and taking corrective action to maintain compliance with policies Answer: B Page Ref: 223 Objective: Learning Objective 2 Difficulty : Easy AACSB: Analytic 6) If the time an attacker takes to break through the organization's preventive controls is greater than the sum of the time required to detect the attack and the time required to respond to the attack, then security is A) effective. B) ineffective. C) overdone. D) undermanaged. Answer: A Page Ref: 224 Objective: Learning Objective 2 Difficulty : Moderate AACSB: Analytic 7) Verifying the identity of the person or device attempting to access the system is A) authentication. B) authorization. C) identification. D) threat monitoring. Answer: A Page Ref: 226 Objective: Learning Objective 3 Difficulty : Easy AACSB: Analytic 8) Restricting access of users to specific portions of the system as well as specific tasks, is A) authentication. B) authorization. C) identification. D) threat monitoring. Answer: B Page Ref: 228 Objective: Learning Objective 3 Difficulty : Easy AACSB: Analytic

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9) Which of the following is an example of a preventive control? A) Encryption B) Log analysis C) Intrusion detection D) Emergency response teams Answer: A Page Ref: 228 Objective: Learning Objective 3 Difficulty : Easy AACSB: Analytic 10) Which of the following is an example of a detective control? A) Physical access controls B) Encryption C) Log analysis D) Emergency response teams Answer: C Page Ref: 237 Objective: Learning Objective 3 Difficulty : Easy AACSB: Analytic 11) Which of the following is an example of a corrective control? A) Physical access controls B) Encryption C) Intrusion detection D) Incident response teams Answer: D Page Ref: 239 Objective: Learning Objective 3 Difficulty : Easy AACSB: Analytic 12) Which of the following is not a requirement of effective passwords? A) Passwords should be changed at regular intervals. B) Passwords should be no more than 8 characters in length. C) Passwords should contain a mixture of upper and lowercase letters, numbers and characters. D) Passwords should not be words found in dictionaries. Answer: B Page Ref: 227 Objective: Learning Objective 3 Difficulty : Easy AACSB: Analytic

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13) Multi-factor authentication A) involves the use of two or more basic authentication methods. B) is a table specifying which portions of the systems users are permitted to access. C) provides weaker authentication than the use of effective passwords. D) requires the use of more than one effective password. Answer: A Page Ref: 228 Objective: Learning Objective 3 Difficulty : Moderate AACSB: Analytic 14) An access control matrix A) does not have to be updated. B) is a table specifying which portions of the system users are permitted to access. C) is used to implement authentication controls. D) matches the user's authentication credentials to his authorization. Answer: B Page Ref: 228 Objective: Learning Objective 3 Difficulty : Easy AACSB: Analytic 15) Perimeter defense is an example of which of the following preventive controls that are necessary to provide adequate security? A) Training B) Controlling physical access C) Controlling remote access D) Host and application hardening Answer: C Page Ref: 230 Objective: Learning Objective 3 Difficulty : Easy AACSB: Analytic 16) Which of the following preventive controls are necessary to provide adequate security for social engineering threats? A) Controlling remote access B) Encryption C) Host and application hardening D) Awareness training Answer: D Page Ref: 226 Objective: Learning Objective 3 Difficulty : Easy AACSB: Analytic

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17) A special purpose hardware device or software running on a general purpose computer, which filters information that is allowed to enter and leave the organization's information system, is known as a(n) A) demilitarized zone. B) intrusion detection system. C) intrusion prevention system. D) firewall. Answer: D Page Ref: 230 Objective: Learning Objective 3 Difficulty : Easy AACSB: Analytic 18) This protocol specifies the procedures for dividing files and documents into packets to be sent over the Internet. A) Access control list B) Internet protocol C) Packet switching protocol D) Transmission control protocol Answer: D Page Ref: 231 Objective: Learning Objective 3 Difficulty : Easy AACSB: Analytic 19) This protocol specifies the structure of packets sent over the internet and the route to get them to the proper destination. A) Access control list B) Internet protocol C) Packet switching protocol D) Transmission control protocol Answer: B Page Ref: 231 Objective: Learning Objective 3 Difficulty : Easy AACSB: Analytic 20) This network access control determines which IP packets are allowed entry to a network and which are dropped. A) Access control list B) Deep packet inspection C) Stateful packet filtering D) Static packet filtering Answer: A Page Ref: 233 Objective: Learning Objective 3 Difficulty : Moderate AACSB: Analytic

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21) Compatibility tests utilize a(n) ________, which is a list of authorized users, programs, and data files the users are authorized to access or manipulate. A) validity test B) biometric matrix C) logical control matrix D) access control matrix Answer: D Page Ref: 228 Objective: Learning Objective 3 Difficulty : Easy AACSB: Analytic 22) The process that screens individual IP packets based solely on the contents of the source and/or destination fields in the packet header is known as A) access control list. B) deep packet inspection. C) stateful packet filtering. D) static packet filtering. Answer: D Page Ref: 233 Objective: Learning Objective 3 Difficulty : Moderate AACSB: Analytic 23) The process that maintains a table that lists all established connections between the organization's computers and the Internet, to determine whether an incoming packet is part of an ongoing communication initiated by an internal computer is known as A) access control list. B) deep packet inspection. C) stateful packet filtering. D) static packet filtering. Answer: C Page Ref: 233 Objective: Learning Objective 3 Difficulty : Moderate AACSB: Analytic 24) The process that allows a firewall to be more effective by examining the data in the body of an IP packet, instead of just the header, is known as A) deep packet inspection. B) stateful packet filtering. C) static packet filtering. D) an intrusion prevention system. Answer: A Page Ref: 233 Objective: Learning Objective 3 Difficulty : Moderate AACSB: Analytic

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25) The security technology that evaluates IP packet traffic patterns in order to identify attacks against a system is known as A) an intrusion prevention system. B) stateful packet filtering. C) static packet filtering. D) deep packet inspection. Answer: A Page Ref: 234 Objective: Learning Objective 3 Difficulty : Moderate AACSB: Analytic 26) This is used to identify rogue modems (or by hackers to identify targets). A) War chalking B) War dialing C) War driving D) none of the above Answer: B Page Ref: 235 Objective: Learning Objective 3 Difficulty : Easy AACSB: Analytic 27) The process of turning off unnecessary features in the system is known as A) deep packet inspection. B) hardening. C) intrusion detection. D) war dialing. Answer: B Page Ref: 236 Objective: Learning Objective 3 Difficulty : Easy AACSB: Analytic 28) The most common input-related vulnerability is A) buffer overflow attack. B) hardening. C) war dialing. D) encryption. Answer: A Page Ref: 237 Objective: Learning Objective 3 Difficulty : Easy AACSB: Analytic

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29) This creates logs of network traffic that was permitted to pass the firewall. A) Intrusion detection system B) Log analysis C) Penetration test D) Vulnerability scan Answer: A Page Ref: 238 Objective: Learning Objective 3 Difficulty : Moderate AACSB: Analytic 30) The process that uses automated tools to identify whether a system possesses any well-known security problems is known as a(n) A) intrusion detection system. B) log analysis. C) penetration test. D) vulnerability scan. Answer: D Page Ref: 236 Objective: Learning Objective 3 Difficulty : Moderate AACSB: Analytic 31) This is an authorized attempt by an internal audit team or an external security consultant to attempt to break into the organization's information system. A) Intrusion detection system B) Log analysis C) Penetration test D) Vulnerability scan Answer: C Page Ref: 238 Objective: Learning Objective 3 Difficulty : Moderate AACSB: Analytic 32) A well-known hacker started his own computer security consulting business shortly after being released from prison. Many companies pay him to attempt to gain unauthorized access to their network. If he is successful, he offers advice as to how to design and implement better controls. What is the name of the testing for which the hacker is being paid? A) Penetration test B) Vulnerability scan C) Deep packet inspection D) Buffer overflow test Answer: A Page Ref: 238 Objective: Learning Objective 3 Difficulty : Moderate AACSB: Analytic

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33) The ________ disseminates information about fraud, errors, breaches and other improper system uses and their consequences. A) chief information officer B) chief operations officer C) chief security officer D) computer emergency response team Answer: C Page Ref: 240 Objective: Learning Objective 3 Difficulty : Moderate AACSB: Analytic 34) In 2007, a major U.S. financial institution hired a security firm to attempt to compromise its computer network. A week later, the firm reported that it had successfully entered the system without apparent detection and presented an analysis of the vulnerabilities that had been found. This is an example of a A) preventive control. B) detective control. C) corrective control. D) standard control. Answer: B Page Ref: 238 Objective: Learning Objective 3 Difficulty : Easy AACSB: Analytic 35) It was 9:08 A.M. when Jiao Jan, the Network Administrator for Folding Squid Technologies, was informed that the intrusion detection system had identified an ongoing attempt to breach network security. By the time that Jiao had identified and blocked the attack, the hacker had accessed and downloaded several files from the company's server. Using the notation for the time-based model of security, in this case A) P > D B) D > P C) C > P D) P > C Answer: B Page Ref: 224 Objective: Learning Objective 2 Difficulty : Difficult AACSB: Analytic

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36) Which of the following is commonly true of the default settings for most commercially available wireless access points? A) The security level is set at the factory and cannot be changed. B) Wireless access points present little danger of vulnerability so security is not a concern. C) Security is set to the lowest level that the device is capable of. D) Security is set to the highest level that the device is capable of. Answer: C Page Ref: 235 Objective: Learning Objective 3 Difficulty : Moderate AACSB: Analytic 37) In recent years, many of the attacks carried out by hackers have relied on this type of vulnerability in computer software. A) Code mastication B) Boot sector corruption C) Weak authentication D) Buffer overflow Answer: D Page Ref: 236 Objective: Learning Objective 3 Difficulty : Easy AACSB: Analytic 38) Meaningful Discussions is a social networking site that boasts over a million registered users and a quarterly membership growth rate in the double digits. As a consequence, the size of the information technology department has been growing very rapidly, with many new hires. Each employee is provided with a name badge with a photo and embedded computer chip that is used to gain entry to the facility. This is an example of a(an) A) authentication control. B) biometric device. C) remote access control. D) authorization control. Answer: A Page Ref: 226 Objective: Learning Objective 3 Difficulty : Easy AACSB: Analytic

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39) When new employees are hired by Folding Squid Technologies, they are assigned user names and appropriate permissions are entered into the information system's access control matrix. This is an example of a(an) A) authentication control. B) biometric device. C) remote access control. D) authorization control. Answer: D Page Ref: 228 Objective: Learning Objective 3 Difficulty : Easy AACSB: Analytic 40) When new employees are hired by Folding Squid Technologies, they are assigned user names and passwords and provided with laptop computers that have an integrated fingerprint reader. In order to log in, the user's fingerprint must be recognized by the reader. This is an example of a(an) A) authorization control. B) biometric device. C) remote access control. D) defense in depth. Answer: B Page Ref: 227 Objective: Learning Objective 3 Difficulty : Easy AACSB: Analytic 41) Information technology managers are often in a bind when a new exploit is discovered in the wild. They can respond by updating the affected software or hardware with new code provided by the manufacturer, which runs the risk that a flaw in the update will break the system. Or they can wait until the new code has been extensively tested, but that runs the risk that they will be compromised by the exploit during the testing period. Dealing with these issues is referred to as A) change management. B) hardening. C) patch management. D) defense in depth. Answer: C Page Ref: 240 Objective: Learning Objective 3 Difficulty : Moderate AACSB: Analytic

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42) Murray Snitzel called a meeting of the top management at Snitzel Capital Management. Number one on the agenda was computer system security. "The risk of security breach incidents has become unacceptable," he said, and turned to the Chief Information Officer. "This is your responsibility! What do you intend to do?" Which of the following is the best answer? A) Evaluate and modify the system using the Trust Services framework B) Evaluate and modify the system using the COSO Internal Control Framework. C) Evaluate and modify the system using the CTC checklist. D) Evaluate and modify the system using COBOL. Answer: A Page Ref: 221 Objective: Learning Objective 1 Difficulty : Moderate AACSB: Analytic 43) Which of the following is the most effective method of protecting against social engineering attacks on a computer system? A) stateful packet filtering B) employee awareness training C) a firewall D) a demilitarized zone Answer: B Page Ref: 226 Objective: Learning Objective 3 Difficulty : Moderate AACSB: Analytic 44) The most effective way to protect network resources, like email servers, that are outside of the network and are exposed to the Internet is A) stateful packet filtering. B) employee training. C) a firewall. D) a demilitarized zone. Answer: D Page Ref: 230 Objective: Learning Objective 3 Difficulty : Moderate AACSB: Analytic 45) All employees of E.C. Hoxy are required to pass through a gate and present their photo identification cards to the guard before they are admitted. Entry to secure areas, such as the Information Technology Department offices, requires further procedures. This is an example of a(an) A) authentication control. B) authorization control. C) physical access control. D) hardening procedure. Answer: C Page Ref: 229 Objective: Learning Objective 3 Difficulty : Easy AACSB: Analytic 12 Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall

46) On February 14, 2008, students enrolled in an economics course at Swingline College received an email stating that class would be cancelled. The email claimed to be from the professor, but it wasn't. Computer forensic experts determined that the email was sent from a computer in one of the campus labs at 9:14 A.M. They were then able to uniquely identify the computer that was used by means of its network interface card's ________ address. Security cameras revealed the identity of the student responsible for spoofing the class. A) TCP/IP B) MAC C) DMZ D) IDS Answer: B Page Ref: 228 Objective: Learning Objective 3 Difficulty : Difficult AACSB: Analytic 47) There are "white hat" hackers and "black hat" hackers. Cowboy451 was one of the "black hat" hackers. He had researched an exploit and determined that he could penetrate the target system, download a file containing valuable data, and cover his tracks in eight minutes. Six minutes into the attack he was locked out of the system. Using the notation of the time-based model of security, which of the following must be true? A) P < 6 B) D = 6 C) P = 6 D) P > 6 Answer: D Page Ref: 224 Objective: Learning Objective 2 Difficulty : Difficult AACSB: Analytic 48) Identify three ways users can be authenticated and give an example of each. Answer: Users can be authenticated by verifying: 1. something they know (password). 2. something they have (smart card or ID badge). 3. Something they are (biometric identification of fingerprint). Page Ref: 226 Objective: Learning Objective 3 Difficulty : Moderate AACSB: Analytic 49) Describe four requirements of effective passwords . Answer: 1. Strong passwords should be at least 8 characters. 2. Passwords should use a mixture of upper and lowercase letters, numbers and characters. 3. Passwords should be random and not words found in dictionaries. 4. Passwords should be changes frequently. Page Ref: 227 Objective: Learning Objective 3 Difficulty : Easy AACSB: Analytic

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50) Explain social engineering. Answer: Social engineering attacks use deception to obtain unauthorized access to information resources, such as attackers who post as a janitor or as a legitimate system user. Employees must be trained not to divulge passwords or other information about their accounts to anyone who contacts them and claims to be part of the organization's security team. Page Ref: 226 Objective: Learning Objective 3 Difficulty : Moderate AACSB: Analytic 51) Explain the value of penetration testing. Answer: Penetration testing involves an authorized attempt by an internal audit team or an external security consultant to break into the organization's information system. This type of service is provided by risk management specialists in all the Big Four accounting firms. These specialists spend more than half of their time on security matters. The team attempts to compromise the system using every means possible. With a combination of systems technology skills and social engineering, these teams often find weaknesses in systems that were believed to be secure. Page Ref: 238 Objective: Learning Objective 3 Difficulty : Moderate AACSB: Reflective Thinking 52) Describe the function of a computer incident response team (CIRT) and the steps that a CIRT should perform following a security incident. Answer: A CIRT is responsible for dealing with major security incidents and breaches. The team should include technical specialists and senior operations management. In response to a security incident, first the CIRT must recognize that a problem exists. Log analysis, intrusion detection systems can be used to detect problems and alert the CIRT. Second, the problem must be contained, perhaps by shutting down a server or curtailing traffic on the network. Third, the CIRT must focus on recovery. Corrupt programs may need to be reinstalled and data restored from backups. Finally, the CIRT must follow-up to discover how the incident occurred and to design corrective controls to prevent similar incidents in the future. Page Ref: 239 Objective: Learning Objective 3 Difficulty : Moderate AACSB: Analytic 53) Identify six physical access controls. Answer: Require visitors to sign in and receive a visitor badge before being escorted by an employee; require employees to wear photo ID badges that are checked by security guards; physical locks and keys; storing documents and electronic media in a fire-proof safe or cabinet; restrict or prohibit cell phones, iPods and other portable devices; set screen savers to start after a few minutes of inactivity; set computers to lock keyboards after a few minutes of inactivity; utilize screen protection devices; use biometric devices to authorize access to spaces and equipment; attach and lock laptops to immobile objects; utilize magnetic or chip cards to authorize access to spaces and equipment; limit or prohibit windows and glass walls in sensitive areas. Page Ref: 229-230 Objective: Learning Objective 3 Difficulty : Moderate AACSB: Analytic 14 Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall