Information Systems and Controls Questions and Answers

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Prepare for the CPA Exam – Information Systems and Controls Questions and Answers

Are you ready to tackle one of the most technical sections of the CPA Exam? This CPA Exam Practice Test for Information Systems and Controls is your essential study resource for mastering the knowledge and skills needed to succeed in the evolving field of accounting information systems (AIS), IT governance, and internal controls.

This practice test is designed for CPA candidates seeking to confidently prepare for the Information Systems and Controls (ISC) section of the CPA Exam. It reflects the latest AICPA exam blueprint and provides realistic, exam-style multiple-choice questions (MCQs) with in-depth explanations to help reinforce learning.

Key Topics Covered:

 

  • Information technology systems and architecture

  • General and application controls in IT environments

  • Data management, system development, and database controls

  • Cybersecurity risks, threats, and mitigation strategies

  • Internal control frameworks (e.g., COSO, COBIT)

  • IT governance and risk assessment

  • Auditing procedures for IT environments

  • System change management and data integrity

Each question is structured to test both theoretical understanding and practical application, enabling you to analyze scenarios similar to those found in the CPA Exam. The detailed explanations help you understand why each answer is correct, empowering you to learn from mistakes and build confidence.

Why Choose This Practice Test?

Aligned with AICPA Blueprint – Focused on the latest CPA Exam standards
Real-World IT Scenarios – Practical context to build analytical skills
Covers Key IT and Risk Concepts – Gain expertise in internal controls and cybersecurity
Ideal for CPA Candidates and Accounting Professionals – Strengthen your tech acumen
Learn at Your Pace – Flexible, self-guided exam prep with immediate feedback

Whether you’re preparing for certification or aiming to sharpen your knowledge of IT controls, system risks, and security protocols, this practice test provides the structured learning experience you need. Stay ahead in your accounting career by mastering the digital and technical competencies critical to today’s financial landscape.

Prepare smarter, build confidence, and pass the CPA Exam with a strong command of Information Systems and Controls.

Sample Questions and Answers

Which of the following is the primary purpose of an internal control system in an organization?

A) To ensure compliance with laws and regulations
B) To protect the company from theft
C) To enhance operational efficiency
D) To provide reasonable assurance regarding the achievement of objectives

Answer: D

What is the main responsibility of an information systems auditor?

A) To manage the IT infrastructure
B) To develop internal control systems
C) To assess and evaluate the effectiveness of controls
D) To design software applications for financial reporting

Answer: C

Which of the following is an example of a preventive control in an information system?

A) Security cameras
B) Backup data storage
C) Firewalls to block unauthorized access
D) Segregation of duties

Answer: C

Which of the following controls is used to ensure that data entered into an accounting system is accurate and complete?

A) Reconciliation
B) Data validation
C) Encryption
D) Backup

Answer: B

Which of the following best describes the principle of “segregation of duties”?

A) Assigning all tasks to a single employee for efficiency
B) Ensuring that no employee has access to all parts of a system or process
C) Implementing electronic controls to prevent unauthorized access
D) Allowing employees to audit their own work

Answer: B

What is the primary purpose of the Sarbanes-Oxley Act of 2002 in relation to information systems?

A) To establish auditing standards for financial reporting
B) To require companies to develop data encryption protocols
C) To mandate the use of firewalls in financial systems
D) To promote efficient software development practices

Answer: A

Which of the following is an example of a detective control in an information system?

A) Backup and restore procedures
B) User authentication procedures
C) Audit logs to track system activity
D) Segregation of duties

Answer: C

In the context of information systems, what does the term “data integrity” refer to?

A) Ensuring that data is secure from unauthorized access
B) Ensuring that data is accurate, complete, and reliable
C) Ensuring that data is processed quickly and efficiently
D) Ensuring that data is backed up regularly

Answer: B

Which of the following is an example of a corrective control in an information system?

A) Firewalls
B) Backups
C) Software patch management
D) User authentication

Answer: C

What is the purpose of an audit trail in an information system?

A) To record all transactions and events that affect system security
B) To monitor employee work performance
C) To verify compliance with legal regulations
D) To protect against physical theft of system hardware

Answer: A

Which of the following is a key component of an information security management system (ISMS)?

A) Access controls
B) Financial analysis
C) Performance evaluations
D) Data compression

Answer: A

Which of the following is an example of an authentication control in an information system?

A) Password protection
B) Backup and recovery procedures
C) Segregation of duties
D) Encryption of data in transit

Answer: A

Which of the following describes the concept of “risk management” in the context of information systems?

A) Identifying potential security threats and mitigating them
B) Developing new software applications for internal use
C) Monitoring employee productivity with surveillance software
D) Encrypting all organizational data

Answer: A

Which of the following is an example of an end-user computing control?

A) Firewall configuration
B) User access rights management
C) Data backup and recovery
D) Manual data entry error correction

Answer: B

Which of the following is a key objective of an information system’s internal controls?

A) Maximizing the number of users with system access
B) Safeguarding assets and ensuring data integrity
C) Allowing all employees to access financial records
D) Streamlining system operations for better performance

Answer: B

What is the primary purpose of an entity’s disaster recovery plan?

A) To develop new business strategies
B) To ensure continuous data availability during a disruption
C) To monitor employee performance
D) To design new financial reporting software

Answer: B

Which of the following is the most important aspect of a system’s user access control?

A) Ensuring that users have access to all organizational resources
B) Restricting user access based on their job responsibilities
C) Allowing users to share login credentials
D) Providing unlimited access to system administrators

Answer: B

What does “least privilege” refer to in the context of access control?

A) Granting users access to all resources they need to perform their duties
B) Granting users the minimum level of access necessary to perform their tasks
C) Allowing users to change access rights at will
D) Granting users access to all areas of the system

Answer: B

Which of the following is a characteristic of a well-designed IT governance framework?

A) Unlimited access to all users
B) Clear alignment between business goals and IT objectives
C) Focus only on technical aspects of information systems
D) Elimination of all security measures for efficiency

Answer: B

Which of the following best describes the role of a systems development life cycle (SDLC)?

A) Managing software licensing
B) Developing a structured process for creating and maintaining information systems
C) Identifying security vulnerabilities in existing systems
D) Conducting audits of system processes

Answer: B

Which of the following is an example of an access control mechanism for sensitive information?

A) Data encryption
B) Physical locks on doors
C) Database indexing
D) Periodic user performance reviews

Answer: A

Which of the following types of controls is used to prevent unauthorized access to a system?

A) Detective controls
B) Corrective controls
C) Preventive controls
D) Compensating controls

Answer: C

What is the purpose of the COBIT framework in IT governance?

A) To develop new software systems
B) To manage system access rights
C) To provide a comprehensive set of controls for IT management
D) To design user authentication systems

Answer: C

Which of the following is a primary objective of risk assessment in information systems?

A) To assess employee performance
B) To identify and evaluate potential threats to the system
C) To design new IT infrastructure
D) To reduce data storage costs

Answer: B

What is the role of a firewall in information systems security?

A) To monitor employee activity
B) To block unauthorized access to the network
C) To store backup data
D) To manage access rights

Answer: B

Which of the following best describes the purpose of encryption in an information system?

A) To prevent unauthorized users from accessing sensitive data
B) To monitor system performance
C) To store backup data securely
D) To improve system processing speed

Answer: A

Which of the following is an example of a system input control?

A) Data validation checks
B) Backup procedures
C) Audit logs
D) Segregation of duties

Answer: A

Which of the following is a key feature of an effective incident response plan?

A) Identifying and responding to system vulnerabilities
B) Securing employee workstations with antivirus software
C) Establishing clear procedures for managing security breaches
D) Reducing IT costs

Answer: C

Which of the following is the most important objective of a business continuity plan (BCP)?

A) Maximizing profit margins
B) Ensuring the availability of critical systems and data during and after a disaster
C) Preventing employee layoffs
D) Minimizing operating expenses

Answer: B

Which of the following is an example of an output control in an information system?

A) Access control measures
B) Monitoring audit logs
C) Validation of user input
D) Ensuring that reports are accurate and complete

Answer: D

 

31. Which of the following is the purpose of a “control matrix” in an information systems audit?

A) To monitor network performance
B) To track employee productivity
C) To assess the design and effectiveness of internal controls
D) To manage data storage requirements

Answer: C

32. Which of the following is an example of a compensating control in an information system?

A) User authentication
B) Regular system backups
C) Monthly review of access logs by management
D) Use of data encryption

Answer: C

33. Which of the following control activities is designed to reduce the risk of fraud in the information system?

A) Training staff on security best practices
B) Implementing access control mechanisms
C) Running routine vulnerability scans
D) Establishing a system for reporting fraud

Answer: B

34. What is the primary purpose of encryption in an information system?

A) To secure network traffic
B) To store data efficiently
C) To ensure data availability
D) To make data readable to unauthorized users

Answer: A

35. Which of the following is an example of a physical security control?

A) User access passwords
B) Biometric authentication systems
C) Network firewalls
D) Encryption of data at rest

Answer: B

36. Which of the following best describes “accountability” in an information system’s control structure?

A) Ensuring only authorized personnel have access to the system
B) Requiring users to take responsibility for their actions within the system
C) Limiting system downtime
D) Reducing system processing time

Answer: B

37. Which of the following controls is intended to limit user access to only the necessary information and actions for their job?

A) Role-based access control
B) Data validation checks
C) Firewalls
D) Audit trails

Answer: A

38. What does the term “risk appetite” refer to in an organization’s information security strategy?

A) The level of risk an organization is willing to accept
B) The types of risks to be avoided
C) The risk assessment process
D) The cost of implementing controls

Answer: A

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