Midterm Exam – CIS500 - Baltzan
Due Date: Sunday thru the link in Week 5.
Please ensure your answers are worth 200 points. When you click on the exam you can cut and paste your answers straight into the test in Blackboard. Please note that this is an exam and I need to see far more than just a single sentence for an answer. The questions are worth different values and to receive full credit you need to fully detail your answer so I can understand your justifications and analysis.
If you have any questions about the exam please contact me directly – I’m happy to help. Paige!!
1. 50 Points
Choose one of the opening cases from chapter 1, 2, 3, 4, or 5. Answer the opening case questions found at the end of section 1 and section 2 for the corresponding chapter. Be sure to list the chapter and the title of the case in your answer. Chapter 4: Sarbanes-Oxley: Where Information Technology, Finance, and Ethics Meet 1. Define the relationship between ethics and the Sarbanes-Oxley Act Ethics can be defined as the principles and standards that guide our behavior toward other people. The Sarbanes-Oxley act was put into place to prevent scandals in the workplace, especially in the Accounting/Finance department. The relationship between ethics and the Sarbanes-Oxley act is following your morals and values to prevent unethical acts from occurring with financial fraud. 2. Why is records management an area of concern for the entire organization and not just the IT department? The IT department controls the electronic documents. Internal and external controls must be put in place for the entire organization and the IT department when it comes to managing records. There must be some time of procedures put into place. 3. Identify two policies an organization can implement to achieve Sarbanes-Oxley compliance. Segregation of duties within the systems development staff and making sure that the financial systems are meeting regulatory requirements for more accurate, detailed, and timely filings. 4. What ethical dilemmas are being solved by implementing Sarbanes-Oxley? There are a lot of companies that face ethical dilemmas every day. When the Sarbanes-Oxley is being implemented, the dilemma of what needs to be stored and for how long is being solved. The SOX act specifically states that any organization should maintain all records and paperwork that was under an audit for a period of five years. 5. What is the biggest ethical roadblock for organizations attempting to achieve Sarbanes-Oxley compliance? The biggest roadblock for organizations that are attempting to achieve Sarbanes-Oxley compliance is ensuring that they are following all rules and regulations. Also, you have to make sure everyone in the organization is following the rules of the SOX act. Also making sure the system is properly updated to prevent any mishaps can become very costly. 6. What information security dilemmas are being solved by implementing Sarbanes-Oxley? The information security dilemmas that are being solved by implementing SOX is the fact that is there is falsifying, destruction , or alteration with the financial records, the person can be fined and/or be sentenced to prison up to 20 years. 7. How can Sarbanes-Oxley help protect a company’s information security? The fact that there should be a segregation of duties in the workplace. For example, the same person who process checks, shouldn’t sign off on the checks. Also, employees should only have access to the information they need. 8. What impact does implementing Sarbanes-Oxley have on information security in a small business? Implementing Sarbanes-Oxley on information security in a small business will be very challenging. Depending on how small the business is and how they manage their records can be very expensive when trying to implement Sarbanes...
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