© Md Sajid Hossain Shimanto

IT Governance
(CA Professional Level)

Important Questions with Answers

Prepared by: Md Sajid Hossain Shimanto (DU, AIS-24th)

Page 1 of 69
 © Md Sajid Hossain Shimanto

Contents
Chapter 1: Information Technology Policies and Laws ............................................................ 6

Question 1: What are the objectives of the National ICT Policy 2009? What are the challenges
to implementing the National ICT Policy? ................................................................................. 6
Question 2: Discuss the relevant laws, regulations, and industry standards about digital
signatures and electronic records. ............................................................................................... 8
Question 3: What are offenses, investigation, adjudication, and penalties for computer crime? 9
Question 4: Describe a model for thinking about ethical, social, and political issues. What are
the five moral dimensions of the information age? .................................................................... 9
Question 5: What is NONOBVIOUS Relationship AWARENESS (NORA)? ......................... 10
Question 6: What ethical, social, and political issues are raised by information systems? .......11
Question 7: What specific principles of conduct can be used to guide ethical decisions? ....... 12
Question 8: Describe the weaknesses of privacy policies and features related to information
systems. What management, organization, and technology factors have contributed to those
weaknesses? .............................................................................................................................. 13
Question 9: Why do contemporary information systems technology and the Internet pose
challenges to the protection of individual privacy and intellectual property? .......................... 14
Question 10: Write short notes on i) Profiling ii) Cookies iii) Web beacons iv) informed
consent v) DMCA vi) repetitive stress injury (RSI). Vii) carpal tunnel syndrome (CTS) viii)
Computer vision syndrome (CVS) ix) technostress x) safe harbor .......................................... 14

Chapter 2: Decision Support Systems ....................................................................................... 17

Question 1: What are the roles of Information technology using decision support systems in
business? ................................................................................................................................... 17
Question 2: Information quality is central to the approach toward decision-making taken by
organizations. What elements must be present to be successful? ............................................. 18
Question 3: Discuss different types of decision structures. ...................................................... 19
Question 4: Describe how online analytical processing can meet the key information needs of
managers. .................................................................................................................................. 19

Page 2 of 69
 © Md Sajid Hossain Shimanto

Question 5: Identify the changes taking place in the form and use of decision support in
business. .................................................................................................................................... 20
Question 6: What are the role and reporting alternatives of management information systems?
................................................................................................................................................... 21
Question 7: Explain the decision support system concept and how it differs from traditional
management information systems............................................................................................. 22
Question 8: Explain how the following information systems can support the information needs
of executives, managers, and business professionals: .............................................................. 23
Question 9: What is artificial intelligence (AI)? What is the goal of AI? List the attributes of
intelligent behavior that Artificial Intelligence can duplicate. .................................................. 24
Question 10: Describe how neural networks, fuzzy logic, genetic algorithms, virtual reality,
and intelligent agents can be used in business. ......................................................................... 25
Question 11: Define neural networks. How does a neural network learn from the data in
processes? ................................................................................................................................. 25
Question 12: Illustrate the ways expert systems can be used in business decision-making
situations. .................................................................................................................................. 26
Question 13: What is blockchain technology? What are the benefits and limitations of this
technology? Briefly describe the idea of public blockchain versus private blockchain. .......... 27
Question 14: What is FinTech? How does it compete with traditional financial methods in the
delivery of financial services? .................................................................................................. 28

Chapter 3: IT Governance ......................................................................................................... 31

Question 1: Evaluate the IT strategy, including the IT direction, and the processes for the
strategy’s development, approval, implementation, and maintenance for alignment with the
organization’s strategies and objectives. ................................................................................... 31
Question 2: Explain the organization’s technology direction and IT architecture and their
implications for setting long-term strategic directions. ............................................................ 31
Question 3: What is the relationship between IT governance and GRC? Why do organizations
implement IT governance infrastructure? ................................................................................. 32
Question 4: Write short notes on COBIT, ITIL, COSO, CMMI and FAIR .............................. 33

Page 3 of 69
 © Md Sajid Hossain Shimanto

Question 5: What are the features an organization’s managers need to know about to build and
use information systems successfully? ..................................................................................... 34
Question 6: Explain the impact of information systems on organizations. .............................. 35
Question 7: Demonstrate Porter’s competitive forces model, the value chain model, synergies,
core competencies, and network economics that help companies develop competitive
strategies using information systems. ....................................................................................... 35
Question 8: Find out the challenges posed by strategic information systems and how they
should be addressed. ................................................................................................................. 36

Chapter 4: Information Systems Security ................................................................................ 39

Question 1: Identify the information system's vulnerability to destruction, error, and abuse. . 39
Question 2: Describe clearly how an IT system becomes vulnerable. ..................................... 40
Question 3: Define the business value of security and control. ................................................ 42
Question 4: Identify the components of an organizational framework for security and control.
................................................................................................................................................... 43
Question 5: Demonstrate the most important tools and technologies for safeguarding
information resources................................................................................................................ 45
Question 6: Describe how computer forensics need to be carried out as per CISA guidelines.
What are four major considerations in the chain of events regarding evidence in computer
forensics? .................................................................................................................................. 45
Question 7: What are the basic security guideline to Prevent Hacking? .................................. 46
Question 8: Write down several ethical issues regarding how the use of information
technologies in business affects employment, individuality, working conditions, privacy,
crime, health, and solutions to societal problems. .................................................................... 47
Question 9: Categorize several types of security management strategies and defenses and
explain how they can be used to ensure the security of business applications of information
technology. ................................................................................................................................ 47
Question 10: Evaluate the information security and privacy policies, standards and procedures
for completeness, alignment with generally accepted practices and compliance with applicable
external requirements. ............................................................................................................... 48

Page 4 of 69
 © Md Sajid Hossain Shimanto

Question 11: Evaluate the design, implementation, maintenance, monitoring and reporting of
physical and environmental controls to determine whether information assets are adequately
safeguarded. .............................................................................................................................. 49

Chapter 5: Developing Business/IT Solutions .......................................................................... 50

Question 1: Use the systems development process outlined as problem-solving frameworks to

propose information systems solutions to simple business problems. ...................................... 50
Question 2: Describe and illustrate how to use each of the steps of the information systems
development life cycle to develop and implement a business information system. ................. 51
Question 3: Explain how prototyping can be used as an effective technique to improve the
process of systems development for end users and IS specialists. ........................................... 52
Question 4: Demonstrate the basics of project management and their importance to a
successful system development effort....................................................................................... 54
Question 5: Identify the activities involved in the implementation of new information systems
................................................................................................................................................... 55
Question 6: Write done the features, advantages and disadvantages of the four basic system
conversion strategies. ................................................................................................................ 57
Question 7: Describe several evaluation factors that should be considered in evaluating the
acquisition of hardware, software, and IS services. .................................................................. 59

Chapter 6: Information Systems Auditing ............................................................................... 61

Question 1: How do you execute a risk-based IS audit strategy in compliance with IS audit
standards to ensure that key risk areas are audited? ................................................................. 61
Question 2: Write down how you plan specific audits to determine whether information
systems are protected, controlled and provide value to the organization. ................................ 62
Question 3: How do you conduct audits in accordance with IS audit standards to achieve
planned audit objectives? .......................................................................................................... 63
Question 4. In the context of the important issue of risk, elaborate how exactly audit risk
should be assessed and treated. ................................................................................................. 65
Question 5: What considerations do you include in performing Pre-Audit Planning and
determine audit procedures and steps for data gathering? ........................................................ 67

Page 5 of 69
 © Md Sajid Hossain Shimanto

Question 6: Describe steps by steps how you communicate audit results and make
recommendations to key stakeholders through meetings and audit reports to promote change
when necessary?........................................................................................................................ 68

Chapter 1: Information Technology Policies and Laws

Question 1: What are the objectives of the National ICT Policy 2009? What are
the challenges to implementing the National ICT Policy?

Ans: Objectives of National ICT Policy 2009 are:

1) Social Equity: Ensure social equity, gender parity, equal opportunity, and equitable
participation in nation-building through access to ICTs for all, including persons with
disabilities and special needs.
2) Productivity: Achieve higher productivity across all economic sectors, including
agriculture and Small, Medium, and Micro Enterprises (SMME), through the use of ICTs.
3) Integrity: Achieve transparency, accountability, responsiveness, and higher efficiency in
the delivery of citizen services.
4) Education and Research: Expand the reach and quality of education to all parts of the
country using ICTs, ensure computer literacy at all levels of education and public service,
and facilitate innovation, creation of intellectual property, and adoption of ICTs through
appropriate research and development.
5) Employment Generation: Enlarge the pool of world-class ICT professionals to cater to
local and overseas employment opportunities.
6) Strengthening Exports: Ensure a thriving software, ITES, and IT manufacturing industry
to meet domestic and global demands, thereby increasing foreign exchange earnings,
attracting foreign direct investments, and reducing dependence on imports.
7) Healthcare: Ensure quality healthcare to all citizens by the innovative application of ICTs.
8) Universal Access: Ensure connectivity to all as a public service obligation (PSO).
9) Environment, Climate, and Disaster Management: Enhance the creation and adoption
of environment-friendly green technologies, ensure safe disposal of toxic wastes, minimize
disaster response times, and enable effective climate change management programs
through the use of ICTs. This is particularly relevant for addressing environmental
pollution and climate change challenges.
10) Supports to ICTs: Develop appropriate infrastructure, including power, and regulatory
frameworks for the effective adoption and use of ICTs throughout the country.
Challenges to implementing these objectives:

Page 6 of 69
 © Md Sajid Hossain Shimanto

Social Equity:
➢ Limited access in rural areas
➢ Gender disparities
➢ Inclusivity for persons with disabilities
Productivity:
➢ Inadequate ICT infrastructure
➢ Resistance to technological change
➢ Need for extensive training programs
Integrity:
➢ Resistance to transparency measures
➢ Bureaucratic hurdles
➢ Cybersecurity concerns
Education and Research:
➢ Limited access to technology in remote areas
➢ Insufficient training for educators
➢ Need for sustained investment in R&D
Employment Generation:
➢ Ensuring a skilled workforce
➢ Addressing skills-industry mismatches
➢ Overcoming barriers to international employment
Strengthening Exports:
➢ Global competition
➢ Ensuring quality standards
➢ Regulatory and infrastructure bottlenecks
Healthcare:
➢ Integration of ICT in healthcare systems
➢ Privacy concerns
➢ Telemedicine infrastructure challenges
Universal Access:
➢ Expanding ICT infrastructure to remote areas
➢ Addressing digital literacy gaps
➢ Ensuring affordability for all citizens
Environment, Climate, and Disaster Management:
➢ Balancing industrial development with sustainability

Page 7 of 69
 © Md Sajid Hossain Shimanto

➢ Resistance to green technologies

➢ Ensuring ICT infrastructure resilience in disasters
Supports to ICTs:
➢ Developing and maintaining ICT infrastructure
➢ Addressing power shortages
➢ Ensuring a conducive regulatory environment

Question 2: Discuss the relevant laws, regulations, and industry standards

about digital signatures and electronic records.

Ans:
Digital signatures:
➢ Definition: Data in electronic form
➢ Relationship: Associated with other electronic data directly or logically
➢ Validation Conditions:
o Uniquely affixed with the signatory
o Capable of identifying the signatory
o Created in a secure manner or using means under the sole control of the signatory
o Linked with attached data to identify any subsequent alterations
Section- 6: Legal Recognition of Electronic Records:
➢ Overrides laws requiring information in written, typewritten, or printed form
➢ Information or matter in electronic form is recognized if accessible for subsequent
reference
Sec- 9: Retention of Electronic Records: Addresses retention requirements for documents,
records, or information
Conditions for satisfaction:
➢ Accessibility for subsequent reference
➢ Retention in the original format or a demonstrably accurate format
➢ Retention of information enabling identification of origin, destination, date, and time
➢ Exception for automatically generated information solely for dispatching or receiving
electronic records

Page 8 of 69
 © Md Sajid Hossain Shimanto

Question 3: What are offenses, investigation, adjudication, and penalties for

computer crime?

Ans:
Offenses:
1) Illegal Entrance in Critical Information Infrastructure:
a. Unauthorized entry or causing harm to critical information infrastructure.
2) Illegal Entrance in Computer, Digital Device, Computer System, etc.:
a. Unauthorized entry or assistance with criminal intent.
3) Damage of Computer, Computer System, etc.:
a. Unauthorized data collection, insertion of viruses, intentional harm to data or
interference.
4) Offenses Relating to Computer Source Code Change:
a. Hiding, destroying, or changing source code, or attempting to do so.
5) Propaganda Against Liberation War, Cognition of Liberation War, etc.:
a. Running propaganda against specific national symbols and historical events.
6) Digital or Electronic Forgery:
a. Unauthorized production, alteration, or hiding of data or programs.
7) Digital or Electronic Fraud:
a. Intentional or unauthorized changes, deletions, or additions to information.
Investigation:
➢ Involves digital forensics, cybercrime units, and law enforcement agencies.
➢ Collects and analyzes digital evidence to trace the origin and identify perpetrators.
Adjudication:
➢ Legal process to resolve disputes and determine guilt or innocence.
➢ Involves presenting evidence in court for judgment.
Penalties:
➢ Imprisonment: Varies from months to years.
➢ Fines: Monetary penalties based on offense severity.
➢ Lifetime Imprisonment: For repeated or severe offenses.
Law enforcement, digital forensics, and specialized units play crucial roles in investigating and
adjudicating computer crimes, with penalties aiming to deter and punish offenders.

Question 4: Describe a model for thinking about ethical, social, and political
issues. What are the five moral dimensions of the information age?

Ans:

Page 9 of 69
 © Md Sajid Hossain Shimanto

One widely recognized model for thinking about ethical, social, and political issues in the context
of information technology is James Moor's "Five Moral Dimensions of the Information Age." This
model, proposed in the 1980s, provides a framework for analyzing the ethical implications of
information technology and its impact on society. The five dimensions are as follows:
1) Information Rights and Obligations: This dimension focuses on the rights and
responsibilities associated with information. It raises questions about privacy, ownership,
and control over personal information. It also considers issues related to intellectual
property, such as copyright and patents.
2) Property Rights: Property rights in the information age concern the ownership of
information and intellectual property. Questions arise about who owns digital content,
software, and data. Issues like piracy, software licensing, and the protection of intellectual
property fall under this dimension.
3) Accountability and Control: This dimension deals with the allocation of responsibility
for the consequences of information technology. It raises questions about who is
accountable for the use and impact of technology, especially when systems fail or are
misused. It also considers issues of control over information systems and the power
dynamics involved.
4) System Quality: System quality addresses the reliability, accuracy, and safety of
information systems. It involves questions about the integrity of data, the dependability of
software, and the overall quality of technological systems. Ensuring the reliability and
security of information systems is crucial in this dimension.
5) Quality of Life: This dimension focuses on the broader societal impacts of information
technology on the quality of life. It considers how technology affects individuals,
communities, and societies. Questions about access to information, the digital divide, and
the social consequences of technology are central to discussions within this dimension.
Adopting Moor's model encourages a comprehensive examination of the ethical implications of
information technology, considering various perspectives and considerations. By addressing these
five moral dimensions, individuals, organizations, and policymakers can make informed decisions
about the development, deployment, and use of information technology in a way that aligns with
ethical principles and societal values.

Question 5: What is NONOBVIOUS Relationship AWARENESS (NORA)?

Ans:
Non-obvious Relationship Awareness (NORA) technology appears to be a sophisticated data
analysis tool with specific techniques and functionalities. Here's a breakdown of the techniques
mentioned in the text:
➢ Data Aggregation:
o NORA collects information from diverse sources, including employment
applications, telephone records, customer listings, and "wanted" lists.

Page 10 of 69
 © Md Sajid Hossain Shimanto

➢ Correlation and Relationship Mapping:

o The technology correlates relationships between data points to unveil hidden
connections.
o It excels at identifying obscure and non-obvious relationships among pieces of
information.
➢ Real-time Data Processing:
o NORA scans and processes data in real-time as it is being generated.
o This capability enables instant discovery of relevant information, such as
identifying a person sharing a phone number with a known terrorist.
➢ Profiling and Identification:
o NORA is designed to create detailed profiles of individuals.
o Its primary purpose is to aid in the identification of potential criminals or terrorists
by analyzing their activities and associations.
➢ Homeland Security Application:
o The technology is positioned as a valuable tool for homeland security.
o It aims to enhance security measures by providing advanced profiling capabilities
to identify potential threats.
➢ Privacy Implications:
o NORA's detailed profiling capabilities raise privacy concerns.
o Technology has the potential to offer an extensive and possibly intrusive view of
an individual's activities and associations.
➢ Instantaneous Threat Detection:
o An example scenario suggests that NORA could identify a person at an airline ticket
counter who shares a phone number with a known terrorist before that person
boards an airplane.
➢ Government and Private Sector Usage:
o NORA is utilized by both the government and the private sector.
o Its application extends to sectors where enhanced profiling capabilities are
beneficial, such as security and identification purposes.

Question 6: What ethical, social, and political issues are raised by information
systems?

Ans:
Ethical Issues:
➢ Privacy: Concerns about the collection and use of personal information.
➢ Security: Ethical responsibility to safeguard information against cyber threats.
➢ Accuracy of Information: Ensuring reliability to avoid misinformation.
➢ Access to Information: Addressing equitable access and usage conditions.
➢ Intellectual Property: Ethical considerations related to unauthorized use or reproduction.

Page 11 of 69
 © Md Sajid Hossain Shimanto

Social Issues:
➢ Inequality and Access: Addressing disparities in technology access.
➢ Job Displacement: Considering the impact of automation on employment.
➢ Digital Inclusion: Ensuring equal opportunities and representation.
➢ Social Media Impact: Ethical concerns related to online behavior and influence.
➢ Cultural Impact: Balancing global connectivity with cultural diversity.
Political Issues:
➢ Government Surveillance: Balancing national security and individual privacy.
➢ Censorship: Managing the role of information systems in facilitating or challenging
censorship.
➢ Cybersecurity Policies: Developing policies for securing information systems.
➢ Digital Governance: Addressing challenges in governing digital spaces and transactions.
➢ Political Manipulation: Safeguarding democratic processes from digital manipulation.

Question 7: What specific principles of conduct can be used to guide ethical

decisions?

Ans:
➢ Ethical Principles for Decision-Making:
➢ Autonomy: Respect individuals' right to make decisions.
➢ Beneficence: Act for the well-being and benefit of others.
➢ Nonmaleficence: Avoid harm and minimize potential harm.
➢ Justice: Treat individuals fairly and equitably.
➢ Fidelity: Uphold commitments and keep promises.
➢ Veracity: Communicate truthfully and honestly.
➢ Integrity: Act with consistency and honesty.
➢ Confidentiality: Protect sensitive information and respect privacy.
➢ Respect for Others: Recognize the worth and dignity of every individual.
➢ Accountability: Take responsibility for actions and consequences.
➢ Transparency: Openly communicate intentions, actions, and decisions.
➢ Social Responsibility: Consider broader community impact and contribute positively.
Applying these principles helps guide ethical decision-making in diverse contexts, fostering a
culture of responsibility and ethical behavior.

Page 12 of 69
 © Md Sajid Hossain Shimanto

Question 8: Describe the weaknesses of privacy policies and features related to

information systems. What management, organization, and technology factors
have contributed to those weaknesses?

Ans:
Weaknesses of Privacy Policies and Features in Information Systems:
1) Ambiguity and Complexity: Policies are often complex and written in difficult language,
leading to user confusion.
2) Consent Challenges: Obtaining informed consent is hindered by lengthy and complex
policies, leading to unintended data sharing.
3) Lack of User Control: Users have limited control over data collection and sharing
practices, impacting privacy settings.
4) Inadequate Enforcement: Weak enforcement mechanisms contribute to non-compliance
with privacy policies.
5) Global Variability: Varied privacy laws globally result in inconsistent data protection
practices.
6) Rapid Technological Advances: Privacy policies struggle to keep up with swiftly
evolving technologies.
7) Third-Party Risks: Collaboration with external services poses risks to user data.
Contributing Factors:
Management Factors:
➢ Lack of Priority: Inadequate attention to privacy as a management priority impacts policy
development.
➢ Insufficient Training: Lack of employee training contributes to non-compliance.
Organizational Factors:
➢ Culture and Values: Organizational culture prioritizing profit over privacy weakens
policies.
➢ Insufficient Resources: Limited resources allocated to privacy measures weaken
implementation.
Technology Factors:
➢ Data Collection Practices: Excessive data collection impacts user privacy.
➢ Security Vulnerabilities: Weak security measures expose data to breaches.
Legal and Regulatory Factors:
➢ Complexity of Laws: Complex and varied privacy laws make compliance challenging.
➢ Lack of Harmonization: Absence of global privacy standards contributes to
inconsistencies.

Page 13 of 69
 © Md Sajid Hossain Shimanto

User Awareness and Education:

➢ Limited Understanding: Complex policies result in user confusion.
➢ Insufficient Education: Lack of user education on privacy practices leads to uninformed
consent.

Question 9: Why do contemporary information systems technology and the

Internet pose challenges to the protection of individual privacy and intellectual
property?

Ans:
Challenges to Privacy:
➢ Massive Data Collection
➢ Data Mining and Profiling
➢ Cloud Computing
➢ Internet of Things (IoT)
➢ Social Media and Online Platforms
➢ Erosion of Anonymity
➢ Location Tracking
➢ Cybersecurity Threats
➢ Global Data Flow
Challenges to Intellectual Property Protection:
➢ Digital Piracy
➢ File Sharing Technologies
➢ Open-Source Software
➢ Digital Rights Management (DRM) Challenges
➢ Global Accessibility
➢ Data Interoperability
➢ Challenges in Enforcement
➢ User-Generated Content

Question 10: Write short notes on i) Profiling ii) Cookies iii) Web beacons iv)
informed consent v) DMCA vi) repetitive stress injury (RSI). Vii) carpal tunnel
syndrome (CTS) viii) Computer vision syndrome (CVS) ix) technostress x) safe
harbor

Ans:

Page 14 of 69
 © Md Sajid Hossain Shimanto

i) Profiling:
➢ Profiling involves the collection and analysis of data to create a user profile.
➢ Often used for targeted advertising or personalized content.
➢ Raises privacy concerns due to potential misuse of personal information.
ii) Cookies:
➢ Small text files stored on users' devices by websites.
➢ Used to track user behavior, store preferences, and enhance user experience.
➢ Privacy concerns arise as cookies can be used for tracking without user consent.
iii) Web Beacons:
➢ Tiny, invisible graphics embedded in emails or web pages.
➢ Used for tracking user activity, measuring engagement, and delivering personalized
content.
➢ Raises privacy concerns as users may be unaware of their presence.
iv) Informed Consent:
➢ Refers to individuals providing voluntary and knowledgeable agreement.
➢ Crucial in privacy contexts to ensure users are aware of and agree to data collection
practices.
➢ Often a legal and ethical requirement.
v) DMCA (Digital Millennium Copyright Act):
➢ U.S. legislation addressing copyright issues in the digital age.
➢ Provides a framework for protecting intellectual property rights online.
➢ Includes provisions for takedown notices and safe harbors for online service providers.
vi) Repetitive Stress Injury (RSI):
➢ A condition resulting from repetitive and prolonged motions.
➢ Common in computer users, causing pain and discomfort in hands, wrists, and arms.
➢ Ergonomic practices and breaks can help prevent RSI.

vii) Carpal Tunnel Syndrome (CTS):

➢ A specific type of RSI affecting the hand and wrist.
➢ Compression of the median nerve in the carpal tunnel causes pain and numbness.
➢ Often linked to prolonged, repetitive hand movements.
viii) Computer Vision Syndrome (CVS):
➢ Eye strain and discomfort due to prolonged computer use.
➢ Symptoms include headaches, blurred vision, and dry eyes.
➢ Proper ergonomics, regular breaks, and proper lighting can alleviate CVS.

Page 15 of 69
 © Md Sajid Hossain Shimanto

ix) Technostress:
➢ Stress resulting from the use of technology.
➢ Occurs when technology use exceeds an individual's coping abilities.
➢ Can impact mental health and productivity.
x) Safe Harbor:
➢ A policy or agreement providing protection or immunity from liability.
➢ In the context of data protection, Safe Harbor principles were used for data transfer
compliance.
➢ The EU-U.S. Privacy Shield replaced Safe Harbor for EU-U.S. data transfers.

Page 16 of 69
 © Md Sajid Hossain Shimanto

Chapter 2: Decision Support Systems

Question 1: What are the roles of Information technology using decision

support systems in business?

Ans:
➢ Data Management:
o Collect and store data from various sources.
➢ Analysis and Reporting:
o Use analytical tools to process and analyze data.
o Generate reports and dashboards for insights.
➢ Forecasting and Modeling:
o Create predictive models and forecasts based on historical data.
➢ What-If Analysis:
o Explore different scenarios to assess potential outcomes.
➢ Decision Automation:
o Automate routine decisions using predefined rules and algorithms.
➢ Collaboration and Communication:
o Facilitate collaboration among stakeholders.
o Include collaborative features in DSS for teamwork.
➢ Strategic Planning:
o Support long-term goal setting and strategic alignment.
➢ Resource Optimization:
o Optimize resource allocation for efficiency.
➢ Compliance and Risk Management:
o Monitor and ensure compliance with regulations.
o Identify and manage risks associated with operations.
➢ Customer Relationship Management (CRM):
o Manage customer data and analyze behavior for improved interactions.
These roles collectively enhance decision-making processes, making them more informed,
efficient, and aligned with organizational goals.

Page 17 of 69
 © Md Sajid Hossain Shimanto

Question 2: Information quality is central to the approach toward decision-

making taken by organizations. What elements must be present to be
successful?

Ans:
Ensuring high information quality is crucial for effective decision-making in organizations.
Several elements must be present to achieve success in this regard:
➢ Accuracy: Information must be precise and free from errors to ensure that decisions are
based on reliable data.
➢ Completeness: All relevant information required for a decision should be available,
leaving no critical gaps.
➢ Relevance: Information should be directly related to the decision at hand, ensuring that
decision-makers are not overwhelmed with unnecessary details.
➢ Timeliness: Information should be provided in a timely manner, allowing decision-makers
to act on current and relevant data.
➢ Consistency: Data should be consistent across different sources and over time to avoid
confusion and conflicting interpretations.
➢ Clarity: Information should be presented in a clear and understandable manner, avoiding
ambiguity and misinterpretation.
➢ Validity: Information should be based on valid sources and methods, ensuring that the data
accurately represents the real-world situation.
➢ Reliability: The information system and data sources must be reliable, consistently
providing accurate data over time.
➢ Accessibility: Decision-makers should have easy access to the information they need,
promoting a seamless flow of data for timely decision-making.
➢ Security: Measures should be in place to ensure the confidentiality and integrity of
sensitive information, protecting it from unauthorized access or manipulation.
➢ Usability: The information should be presented in a format that is user-friendly and easily
understandable by the intended audience.
➢ Scalability: The information system should be able to handle an increasing volume of data
as the organization grows, ensuring continued high-quality decision support.
➢ Interoperability: Systems and data sources should be compatible and able to work
together, facilitating the integration of diverse data sets for a comprehensive view.
➢ Auditability: There should be mechanisms in place to track changes to the data and the
decision-making process, enabling accountability and transparency.
➢ Alignment with Organizational Goals: The information provided should align with the
strategic goals and objectives of the organization, ensuring that decision-making supports
overall mission and vision.
➢ Feedback Mechanisms: Systems should incorporate feedback loops to continuously
improve information quality based on user experiences and evolving business needs.

Page 18 of 69
 © Md Sajid Hossain Shimanto

By incorporating these elements into their approach to information quality, organizations can
enhance the reliability and effectiveness of their decision-making processes. This, in turn,
contributes to improved performance and competitive advantage.

Question 3: Discuss different types of decision structures.

Ans:
➢ Sequential Structure: Executes statements in order.
➢ Selection Structure: Uses "if-else" or "switch" statements for decision-making based on
conditions.
➢ Repetition Structure: Involves loops like "for," "while" and "do-while" for repeated
execution.
➢ Nested Structures: Decision and loop structures nested within each other for more
complex logic.
➢ Multiway Decision Structure: Handles multiple conditions using constructs like the
"switch" statement.
➢ Compound Decision Structure: Evaluates multiple conditions with logical operators
(AND, OR, NOT).
➢ Iterative Decision Structure: Decision structures are used within loops to control
iteration.
➢ Case-Based Decision Structure: Evaluates a variable or expression against predefined
cases.
➢ Guarded Command Structure (GOTO): Historically used for decision-making but
discouraged due to readability concerns.

Question 4: Describe how online analytical processing can meet the key
information needs of managers.

Ans:
OLAP (Online Analytical Processing) effectively meets the information needs of managers by
providing:
➢ Multidimensional Analysis: Allows managers to view data from various dimensions
simultaneously.
➢ Interactive Exploration: Enables drilling down into detailed data or rolling up to higher-
level summaries for in-depth exploration.
➢ Data Slicing and Dicing: Permits focusing on specific subsets of information for a
thorough analysis.
➢ Quick Response Time: Optimized for quick query response times, ensuring timely access
to critical information.

Page 19 of 69
 © Md Sajid Hossain Shimanto

➢ Trend Analysis: Facilitates analyzing data over different time periods to identify patterns
and make informed decisions.
➢ Forecasting and Predictive Analysis: Supports forecasting and predictive analysis based
on historical data.
➢ Consolidation and Aggregation: Allows consolidation and aggregation of data at
different levels for a holistic view.
➢ Hierarchy Navigation: Supports navigating through hierarchical structures to understand
relationships and dependencies.
➢ Scenario Analysis: Enables scenario analysis by changing input parameters and observing
the impact on key performance indicators.
➢ Data Visualization: Integrates with data visualization tools to represent complex data in
charts, graphs, and visual formats.
➢ User-Friendly Interfaces: Provides intuitive interfaces, ensuring managers can navigate
and analyze data without extensive technical expertise.
In essence, OLAP empowers managers to make informed decisions by offering a flexible,
interactive, and efficient approach to analyzing complex data from different perspectives.

Question 5: Identify the changes taking place in the form and use of decision
support in business.

Ans:
➢ Integration of AI and ML: Used for advanced analysis and insights.
➢ Real-Time Decision Support: Emphasis on immediate, up-to-date data.
➢ Mobile-Friendly Solutions: Accessibility and decision-making on-the-go.
➢ Cloud-Based Systems: Flexibility, scalability, and collaborative capabilities.
➢ User-Friendly Interfaces: Intuitive dashboards and visualization tools.
➢ Predictive Analytics: Forecasting future trends and outcomes.
➢ Integration with Big Data: Analyzing and deriving insights from large datasets.
➢ Personalized Experiences: Tailoring insights to individual users or departments.
➢ Emphasis on Collaboration: Facilitating teamwork and collective decision-making.
➢ Ethical and Responsible Practices: Ensuring fairness, transparency, and accountability.
➢ Cybersecurity Integration: Robust measures to protect sensitive information.
➢ Customization and Modularity: Adaptable systems allowing for customization.
➢ Continuous Monitoring and Feedback: Regular assessment and refinement of decision-
making strategies.
➢ Compliance and Regulatory Considerations: Incorporating features to meet industry
regulations.
These trends collectively represent the evolving landscape of decision support in business,
adapting to technological innovations and the changing requirements of organizations.

Page 20 of 69
 © Md Sajid Hossain Shimanto

Question 6: What are the role and reporting alternatives of management

information systems?

Ans:
Management Information Systems (MIS) play a crucial role in organizations by facilitating the
management and processing of information to support decision-making and overall business
operations. The primary roles and reporting alternatives of MIS include:
Roles of Management Information Systems (MIS):
➢ Data Collection: MIS gather, process, and store vast amounts of data from various sources
within and outside the organization.
➢ Data Processing: MIS transform raw data into meaningful information through sorting,
categorizing, and summarizing.
➢ Information Storage: MIS store information in databases or data warehouses, ensuring
accessibility and security.
➢ Information Retrieval: MIS provide quick and efficient retrieval of information when
needed by users.
➢ Information Analysis: MIS analyze data to generate insights, trends, and patterns,
supporting strategic decision-making.
➢ Decision Support: MIS assist managers in making informed decisions by providing
relevant and timely information.
➢ Strategic Planning: MIS contribute to strategic planning by providing data on
organizational performance and market trends.
➢ Resource Management: MIS aid in the efficient allocation and management of
organizational resources, including finances and personnel.
➢ Performance Monitoring: MIS monitor key performance indicators (KPIs) to assess the
organization's performance against goals.
➢ Communication Facilitation: MIS facilitate communication by providing a centralized
platform for sharing information among different departments.

Reporting Alternatives of Management Information Systems:

➢ Scheduled Reports: Regularly generated reports based on predefined schedules, providing
routine updates on key metrics.
➢ Ad Hoc Reports: On-demand reports generated for specific and immediate information
needs.
➢ Key Performance Indicators (KPI) Dashboards: Visual representations of KPIs,
offering a quick overview of organizational performance.
➢ Drill-Down Reports: Detailed reports that allow users to drill down into specific aspects
of the data for a more in-depth analysis.
Page 21 of 69
 © Md Sajid Hossain Shimanto

➢ Exception Reports: Reports highlighting deviations from established norms or thresholds,

helping identify issues that require attention.
➢ Forecasting Reports: Reports that use historical data and predictive analytics to forecast
future trends.
➢ Comparative Reports: Reports that compare current performance with historical data or
benchmarks.
➢ Strategic Reports: Reports designed to support strategic decision-making by providing
high-level insights and trends.
➢ Operational Reports: Reports that focus on day-to-day operational activities and
performance.
➢ Financial Reports: Reports specifically related to financial data, including budgeting,
expenditures, and revenue.
➢ Compliance Reports: Reports ensuring that organizational activities adhere to regulatory
requirements and industry standards.
➢ Trend Analysis Reports: Reports that analyze data trends over time, helping identify
patterns and potential future developments.
In summary, Management Information Systems fulfill a variety of roles in organizations, from data
processing and analysis to decision support and strategic planning. The reporting alternatives
provided by MIS cater to different information needs, offering a range of reports, dashboards, and
analyses to support various levels of management in making informed decisions.

Question 7: Explain the decision support system concept and how it differs from
traditional management information systems.

Ans:
Decision Support System (DSS):
➢ Purpose: Supports decision-making processes with relevant information and analytical
tools.
➢ Flexibility: Adaptable and flexible, allowing users to interactively explore data and
conduct what-if analyses.
➢ User-Driven: Decision-makers have more control and can define queries without
extensive IT support.
➢ Analytical Tools: Incorporates advanced analytical tools for data mining, forecasting, and
simulation.
➢ Semi-Structured and Unstructured Support: Particularly useful for semi-structured and
unstructured decisions.
➢ Focus: Emphasizes future predictions and what-if analysis.

Traditional Management Information System (MIS):

Page 22 of 69
 © Md Sajid Hossain Shimanto

➢ Focus: Primarily geared towards transaction processing and routine operational data.
➢ Structured Reports: Generates structured reports based on predefined formats and
schedules.
➢ Fixed and Standardized: More fixed and standardized in its approach.
➢ Historical Data Reporting: Emphasizes reporting on historical data for operational
control and monitoring.
➢ Less Interactive: Generally, less interactive, with limited user customization.
➢ Primarily Structured Decision Support: Provides structured decision support,
particularly for routine decisions.
In essence, DSS is designed for flexible, interactive decision support with a focus on future-
oriented analyses, while MIS is more oriented towards structured reporting for routine operational
control and historical data monitoring.

Question 8: Explain how the following information systems can support the
information needs of executives, managers, and business professionals:

i. Executive information systems

ii. Enterprise information portals
iii. Knowledge management systems
Ans:
Executive Information Systems (EIS):
➢ Executives: Tailored for strategic decision-making, offering a consolidated view of key
performance indicators.
➢ Managers: Supports monitoring organizational performance.
➢ Business Professionals: Provides insights into strategic aspects.
Enterprise Information Portals:
➢ Executives: Centralized access to diverse information for informed decision-making.
➢ Managers: Customizable dashboards focused on departmental metrics.
➢ Business Professionals: Facilitates collaboration and communication through shared
spaces.
Knowledge Management Systems:
➢ Executives: Central repository for organizational knowledge, supporting strategic
decision-making.
➢ Managers: Encourages information sharing and collaboration within teams.
➢ Business Professionals: Facilitates continuous learning and skills development.

Page 23 of 69
 © Md Sajid Hossain Shimanto

Question 9: What is artificial intelligence (AI)? What is the goal of AI? List the
attributes of intelligent behavior that Artificial Intelligence can duplicate.

Ans:
Artificial Intelligence (AI):
Artificial Intelligence refers to the simulation of human intelligence in machines that are
programmed to think, learn, and problem-solve like humans. It involves creating algorithms and
systems that enable machines to perform tasks that typically require human intelligence, such as
visual perception, speech recognition, decision-making, and language translation.
Goal of AI:
The primary goal of AI is to create systems that can perform tasks that would normally require
human intelligence. This encompasses a wide range of capabilities, including reasoning, learning,
problem-solving, perception, language understanding, and even creativity. The ultimate objective
is to develop machines that can operate autonomously and efficiently in various complex and
dynamic environments.
Attributes of Intelligent Behavior that AI Can Duplicate:
➢ Learning: AI systems can be designed to learn from data and experiences, improving their
performance over time without explicit programming.
➢ Reasoning: AI can perform logical reasoning, making decisions based on rules and
information available to it.
➢ Problem-Solving: AI systems can analyze complex problems and develop solutions, often
leveraging algorithms and heuristics.
➢ Perception: AI can replicate aspects of human perception, including image and speech
recognition, enabling machines to interpret and understand sensory input.
➢ Language Understanding: Natural Language Processing (NLP) in AI allows machines to
understand, interpret, and generate human language.
➢ Planning: AI systems can develop plans and strategies to achieve specific goals or solve
particular problems.
➢ Knowledge Representation: AI models can store and utilize knowledge in a structured
manner, allowing for efficient information retrieval.
➢ Adaptability: AI systems can adapt to changing environments or circumstances,
modifying their behavior based on new information or experiences.
➢ Creativity: Some AI systems demonstrate creative capabilities by generating novel ideas,
designs, or solutions.
➢ Pattern Recognition: AI excels at identifying patterns and trends in large datasets,
contributing to tasks such as data analysis and prediction.
➢ Emotion Recognition: Advancements in affective computing enable AI to recognize and
respond to human emotions, enhancing interactions.
➢ Interaction: AI can interact with users through natural language interfaces, speech
recognition, and even facial expressions.
Page 24 of 69
 © Md Sajid Hossain Shimanto

➢ Autonomy: Autonomous AI systems can operate independently, making decisions and

taking actions without constant human intervention.
➢ Robotics: AI is a key component in robotics, allowing machines to perceive their
environment, make decisions, and execute physical actions.
While AI has made significant strides in duplicating various attributes of intelligent behavior,
achieving a truly human-level general intelligence remains an ongoing challenge. Researchers and
developers continue to explore and refine AI technologies to broaden its capabilities and improve
its performance across diverse domains.

Question 10: Describe how neural networks, fuzzy logic, genetic algorithms,
virtual reality, and intelligent agents can be used in business.

Ans:
A. Neural Networks: Predictive analytics, image and speech recognition, fraud detection.
➢ Benefits: Improved accuracy, adaptability, handling complex relationships.
B. Fuzzy Logic: Decision support systems, quality control, traffic management.
➢ Benefits: Handles uncertainty, flexibility in representing subjective concepts.
C. Genetic Algorithms: Optimization in resource allocation, financial modeling, product design.
➢ Benefits: Adaptive and evolutionary problem-solving, versatility.
D. Virtual Reality: Training and simulation, product prototyping, virtual conferencing.
➢ Benefits: Enhanced training, cost reduction, improved collaboration.
E. Intelligent Agents: Customer service, data analysis, personalization.
➢ Benefits: Task automation, enhanced customer experience, adaptive decision-making.
These technologies collectively contribute to more efficient operations, innovative solutions, and
improved overall business performance.

Question 11: Define neural networks. How does a neural network learn from
the data in processes?

Ans:
Neural Networks: Neural networks are computational models inspired by the human brain,
comprising interconnected nodes organized into layers. They learn from data through a training
process involving weight adjustments based on input data and desired output.

Page 25 of 69
 © Md Sajid Hossain Shimanto

Learning Process:
➢ Initialization: Begin with random weights.
➢ Forward Propagation: Input data is processed through layers to generate an output.
➢ Error Calculation: Compare output to the actual output, calculate the error.
➢ Backpropagation: Update weights backward based on the error, using the gradient descent
algorithm.
➢ Optimization: Iterate through the dataset multiple times, adjusting weights to minimize
error.
➢ Training Data Iteration: Repeat the process on the entire dataset for refinement.
➢ Validation: Assess model performance on a separate dataset to ensure generalization.
Neural networks, once trained, can make predictions or classifications on new data, and they find
applications in tasks like image recognition and natural language processing.

Question 12: Illustrate the ways expert systems can be used in business decision-
making situations.

Ans:
Expert systems in business decision-making scenarios:
➢ Diagnosis and Troubleshooting: Quickly identifies and resolves technical issues,
minimizing downtime.
➢ Financial Decision Support: Analyzes market trends and economic indicators for
investment recommendations.
➢ Customer Support and Service: Guides support agents through troubleshooting
processes for effective issue resolution.
➢ Supply Chain Management: Optimizes inventory, predicts demand, and suggests
procurement strategies.
➢ Human Resources and Recruitment: Assists in candidate evaluation and streamlines the
hiring process.
➢ Regulatory Compliance: Assesses business practices against compliance standards to
minimize risks.
➢ Marketing and Personalization: Analyzes customer data to recommend personalized
marketing strategies.
➢ Quality Control: Monitors production processes, detects deviations, and recommends
corrective actions.
➢ Project Management: Assists in project planning, risk analysis, and mitigation strategy
development.
➢ Legal Decision Support: Aids legal research, analyzes case law, and provides
recommendations for legal strategies.

Page 26 of 69
 © Md Sajid Hossain Shimanto

Expert systems contribute to informed decision-making, improving efficiency and accuracy in

various business contexts.

Question 13: What is blockchain technology? What are the benefits and
limitations of this technology? Briefly describe the idea of public blockchain
versus private blockchain.

Ans:
Blockchain Technology:
Blockchain is a decentralized and distributed ledger technology that enables secure and transparent
record-keeping of transactions across a network of computers. It consists of a chain of blocks,
where each block contains a list of transactions. Once a block is filled, it is linked to the previous
block, forming a chronological and immutable chain of records. The decentralized nature of
blockchain ensures that all participants in the network have a synchronized copy of the ledger,
reducing the need for a central authority.

Benefits of Blockchain Technology:

➢ Decentralization: No single authority controls the entire network, reducing the risk of
manipulation or fraud.
➢ Security: Transactions are cryptographically secured, enhancing the integrity and privacy
of data.
➢ Transparency: All participants in the network have access to the same ledger, promoting
transparency and trust.
➢ Immutability: Once a block is added to the chain, it is nearly impossible to alter previous
blocks, ensuring data integrity.
➢ Efficiency: Smart contracts, self-executing contracts with coded terms, automate and
streamline processes.
➢ Reduced Intermediaries: Transactions can occur directly between parties, reducing the
need for intermediaries.
➢ Traceability: The entire transaction history is visible and traceable, facilitating auditing
and compliance.

Limitations of Blockchain Technology:

➢ Scalability: Processing a large number of transactions can be slow, limiting scalability.
➢ Energy Consumption: Proof-of-Work consensus mechanisms, like those used in Bitcoin,
can be energy-intensive.

Page 27 of 69
 © Md Sajid Hossain Shimanto

➢ Regulatory Challenges: Regulatory frameworks for blockchain and cryptocurrencies are

still evolving.
➢ Lack of Standardization: Lack of standardization hinders interoperability between
different blockchain platforms.
➢ Data Storage Size: As the blockchain grows, storage requirements increase, posing
challenges for network participants.

Public Blockchain vs. Private Blockchain:

Public Blockchain:
➢ Open to Anyone: Anyone can join the network, participate in transaction validation, and
view the entire blockchain.
➢ Decentralized: No single entity controls the network, promoting decentralization.
➢ Permissionless: Participants do not need approval to join or participate in the network.
➢ Examples: Bitcoin, Ethereum.
Private Blockchain:
➢ Restricted Access: Access to the blockchain is controlled, and participation may require
permission.
➢ Centralized Control: Typically operated by a central authority or a consortium of known
entities.
➢ Permissioned: Participants may need approval to join or perform certain actions.
➢ Examples: Hyperledger Fabric, Corda.

Public vs. Private Blockchain:

Public: Open and decentralized, suitable for transparent and trustless applications like
cryptocurrencies.
Private: Controlled access, suitable for business and consortium use cases where privacy and
control are priorities.
In summary, blockchain technology offers decentralized, secure, and transparent record-keeping.
Public blockchains are open and decentralized, while private blockchains are more controlled and
permissioned, each serving specific use cases based on their characteristics.

Question 14: What is FinTech? How does it compete with traditional financial
methods in the delivery of financial services?

Ans:

Page 28 of 69
 © Md Sajid Hossain Shimanto

FinTech (Financial Technology):

FinTech refers to the use of technology to deliver financial services more efficiently, innovatively,
and inclusively. It encompasses a wide range of applications, including digital banking, payment
services, robo-advisors, blockchain, crowdfunding, and more. FinTech companies leverage
technology to streamline financial processes, enhance user experiences, and often target specific
pain points within the traditional financial industry.

Competing with Traditional Financial Methods:

Efficiency and Speed:
➢ FinTech: Offers faster and more streamlined processes, reducing the time required for
transactions, account management, and other financial activities.
➢ Traditional: Traditional methods may involve manual processes, paperwork, and longer
processing times.
Cost-Effectiveness:
➢ FinTech: Generally operates with lower overhead costs, allowing for reduced fees and
costs for users.
➢ Traditional: Traditional financial institutions may have higher operating costs, leading to
potentially higher fees for customers.
Accessibility and Inclusion:
➢ FinTech: Expands access to financial services, especially for unbanked or underbanked
populations, by leveraging mobile technology and the internet.
➢ Traditional: Some traditional financial services may be geographically limited, making
access challenging for certain demographics.
User Experience:
➢ FinTech: Emphasizes user-friendly interfaces, intuitive apps, and personalized
experiences, enhancing customer satisfaction.
➢ Traditional: Traditional banking interfaces may be perceived as less user-friendly and
more bureaucratic.
Innovation and Customization:
➢ FinTech: Drives innovation in financial services, offering new products and features, and
allowing for greater customization to meet individual needs.
➢ Traditional: Traditional methods may be slower to adopt new technologies and adapt to
changing customer preferences.
Risk Management:

Page 29 of 69
 © Md Sajid Hossain Shimanto

➢ FinTech: Utilizes advanced analytics, machine learning, and AI for more effective risk
assessment and fraud detection.
➢ Traditional: While traditional institutions have sophisticated risk management, FinTech
can offer more real-time and data-driven solutions.
Flexibility:
➢ FinTech: Adaptable to changing market conditions and customer demands, often able to
pivot quickly to incorporate new technologies.
➢ Traditional: Larger and more established institutions may face challenges in rapid
adaptation due to existing infrastructure and regulatory considerations.
Global Reach:
➢ FinTech: Can operate on a global scale, transcending geographical boundaries and
providing services to a diverse range of users.
➢ Traditional: Traditional institutions may have limitations in offering services beyond their
established networks.
Blockchain and Cryptocurrencies:
➢ FinTech: Utilizes blockchain for secure and transparent transactions, and cryptocurrencies
for alternative forms of payment and investment.
➢ Traditional: May have more conservative views on blockchain and cryptocurrencies, often
approaching them cautiously.
While FinTech presents numerous advantages, traditional financial institutions continue to hold
strengths in stability, regulatory compliance, and longstanding customer relationships. The
competition between FinTech and traditional financial methods is dynamic, with both sides
influencing and learning from each other to adapt to the evolving landscape of financial services.

Page 30 of 69
 © Md Sajid Hossain Shimanto

Chapter 3: IT Governance

Question 1: Evaluate the IT strategy, including the IT direction, and the

processes for the strategy’s development, approval, implementation, and
maintenance for alignment with the organization’s strategies and objectives.

Ans:
➢ Alignment with Organizational Strategies and Objectives:
o Evaluate alignment with broader organizational goals.
o Assess stakeholder involvement in strategy development.
➢ IT Strategy Development:
o Examine inclusivity in the strategy development process.
o Review methodologies for analyzing IT needs, trends, and technologies.
➢ IT Strategy Approval:
o Assess decision-making processes for approval.
o Evaluate how risks associated with the strategy are addressed.
➢ IT Strategy Implementation:
o Evaluate project management processes.
o Assess resource allocation for strategy execution.
➢ IT Strategy Maintenance:
o Establish feedback mechanisms for continuous evaluation.
o Ensure adaptability to changes in the business environment.
➢ Performance Measurement:
o Define and monitor KPIs and metrics.
o Regularly update the strategy based on feedback and changes.
This provides a concise overview of the key elements to consider when evaluating an IT strategy
and its alignment with organizational strategies and objectives.

Question 2: Explain the organization’s technology direction and IT architecture

and their implications for setting long-term strategic directions.

Ans:
➢ Organization's Technology Direction:
o Approach and focus on adopting technology.
o Influences innovation, competitive advantage, and adaptability.
➢ IT Architecture:
o Structure and design of IT systems.
o Impacts scalability, integration, and security.

Page 31 of 69
 © Md Sajid Hossain Shimanto

➢ Implications for Long-Term Strategic Directions:

o Informed Decision-Making.
o Resource Allocation.
o Promotes Innovation and Agility.
o Enhances Risk Management.
A clear alignment between technology direction, IT architecture, and long-term strategy enhances
organizational resilience and competitiveness.

Question 3: What is the relationship between IT governance and GRC? Why

do organizations implement IT governance infrastructure?

Ans:
Relationship between IT Governance and GRC:
IT Governance:
➢ Focuses on aligning IT strategy with business objectives.
➢ Defines decision-making frameworks and responsibilities.
GRC (Governance, Risk Management, and Compliance):
➢ Integrates governance, risk management, and compliance activities.
➢ IT governance is a subset of GRC, addressing IT-specific aspects.

Why Organizations Implement IT Governance Infrastructure:

➢ Strategic Alignment: Aligns IT initiatives with overall business objectives.
➢ Risk Management: Identifies, assesses, and manages IT-related risks.
➢ Resource Optimization: Efficiently allocates and utilizes IT resources.
➢ Performance Measurement: Establishes metrics to measure IT performance.
➢ Compliance: Ensures adherence to laws, regulations, and standards.
➢ Decision-Making Framework: Defines clear decision-making processes and
responsibilities.
➢ Stakeholder Communication: Facilitates communication between IT and other business
units.
➢ Continuous Improvement: Fosters a culture of continuous improvement in IT processes.
Organizations implement IT governance to ensure strategic alignment, effective risk management,
resource optimization, compliance, and continuous improvement in IT processes.

Page 32 of 69
 © Md Sajid Hossain Shimanto

Question 4: Write short notes on COBIT, ITIL, COSO, CMMI and FAIR

Ans:
COBIT (Control Objectives for Information and Related Technologies):
➢ Purpose: Framework for governance and management of enterprise IT.
➢ Focus: Aligning IT with business objectives, providing control over IT processes, and
ensuring value delivery.
➢ Key Components: Framework, process descriptions, control objectives, management
guidelines.
ITIL (Information Technology Infrastructure Library):
➢ Purpose: Best practices for IT service management (ITSM).
➢ Focus: Improving efficiency, effectiveness, and quality of IT services.
➢ Key Components: Service lifecycle stages (Service Strategy, Service Design, Service
Transition, Service Operation, Continual Service Improvement).
COSO (Committee of Sponsoring Organizations of the Treadway Commission):
➢ Purpose: Internal control framework for enterprise risk management and fraud prevention.
➢ Focus: Providing principles and components for designing, implementing, and monitoring
internal controls.
➢ Key Components: Control environment, risk assessment, control activities, information
and communication, monitoring activities.
CMMI (Capability Maturity Model Integration):
➢ Purpose: Framework for process improvement in software development and general
business processes.
➢ Focus: Enhancing the capability of organizations to develop and maintain quality products
and services.
➢ Key Components: Process areas, maturity levels (Initial, Managed, Defined,
Quantitatively Managed, Optimizing).
FAIR (Factor Analysis of Information Risk):
➢ Purpose: Framework for quantifying and analyzing information security and operational
risk.
➢ Focus: Providing a systematic approach to risk analysis, considering factors such as loss
event frequency and loss magnitude.
➢ Key Components: Risk scenarios, risk factors, data analysis, modeling techniques.
These frameworks and methodologies play crucial roles in various aspects of IT and business
management, providing structured approaches for governance, risk management, process
improvement, and service management. Organizations often adopt these frameworks to enhance
their operational efficiency, security, and overall business performance.

Page 33 of 69
 © Md Sajid Hossain Shimanto

Question 5: What are the features an organization’s managers need to know

about to build and use information systems successfully?

Ans:
Managers need to be aware of several key features to successfully build and use information
systems:
➢ Alignment with Business Objectives: Ensure information systems support organizational
goals.
➢ User Requirements: Understand and meet user needs effectively.
➢ Scalability: Design systems to accommodate growth.
➢ Flexibility and Adaptability: Create systems that can adapt to changes.
➢ Security Measures: Implement robust security for data protection.
➢ Integration Capabilities: Foster integration for enhanced efficiency.
➢ Data Quality and Governance: Ensure accuracy and reliability of data.
➢ Usability and User Training: Prioritize user experience and provide adequate training.
➢ Cost Management: Be aware of total cost of ownership.
➢ Compliance: Stay compliant with regulations and legal requirements.
➢ Risk Management: Identify and manage potential risks effectively.
➢ Performance Monitoring: Monitor system performance and optimize resources.
➢ Change Management: Develop effective strategies for system transitions and upgrades.
➢ Vendor Management: Manage third-party relationships effectively.
➢ Disaster Recovery: Plan for system failures and emergencies.
➢ Feedback Mechanisms: Establish channels for user feedback to drive continuous
improvement.
➢ Ethical Use of Information: Promote ethical practices in information management.
➢ Innovation: Foster an environment that encourages innovation in information systems.
This awareness ensures effective development, implementation, and ongoing utilization of
information systems within organizations.

Page 34 of 69
 © Md Sajid Hossain Shimanto

Question 6: Explain the impact of information systems on organizations.

Ans:
➢ Operational Efficiency: Streamlines tasks and reduces errors through automation.
➢ Decision-Making Processes: Enables data-driven decision-making with real-time
analytics.
➢ Strategic Advantage: Provides a competitive edge through innovation and adaptability.
➢ Communication and Collaboration: Facilitates seamless communication and
collaboration among employees.
➢ Customer Relationship Management (CRM): Improves understanding of customer
needs and enhances satisfaction.
➢ Innovation and New Business Models: Fosters innovation and the development of new
products and services.
➢ Supply Chain Management: Optimizes supply chain processes for efficiency and cost
reduction.
➢ Data Security and Privacy Challenges: Introduces challenges related to cybersecurity
and privacy.
➢ Workforce Transformation: Supports remote work and flexible schedules.
➢ Regulatory Compliance: Navigates complex regulatory environments related to data
protection.
➢ Costs and Return on Investment (ROI): Involves initial costs with potential long-term
operational efficiency.
➢ Organizational Culture and Change Management: Requires cultural shift and effective
change management strategies.
Information systems significantly influence organizational operations, strategy, and
competitiveness, offering both opportunities and challenges that require strategic management and
adaptation.

Question 7: Demonstrate Porter’s competitive forces model, the value chain

model, synergies, core competencies, and network economics that help
companies develop competitive strategies using information systems.

Ans:
Porter's Competitive Forces Model:
➢ Analyzes industry structure and competitive forces.
➢ Information systems impact supplier and buyer power, threat of new entrants, substitutes,
and competitive rivalry.
Value Chain Model:

Page 35 of 69
 © Md Sajid Hossain Shimanto

➢ Identifies primary and support activities creating value.

➢ Information systems optimize and automate value chain processes.
Synergies:
➢ Achieving combined effects greater than individual parts.
➢ Information systems create synergies through seamless data flow and collaboration.
Core Competencies:
➢ Unique capabilities giving a competitive advantage.
➢ Information systems contribute to core competencies through unique processes,
technologies, or data analytics.
Network Economics:
➢ Value of a network increases with more users.
➢ Information systems enable connectivity and collaboration, amplifying network effects.
Contribution to Competitive Strategies:
➢ Cost Leadership: Implementing efficient information systems to reduce operational costs.
➢ Differentiation: Leveraging information systems for market intelligence, personalization,
and innovation.
➢ Focus Strategy: Tailoring information systems to meet the unique needs of a specific
market segment.
➢ Innovation Strategy: Utilizing information systems for research, development, data
analytics, and collaboration.
➢ Alliance and Network Strategies: Implementing collaborative information systems,
integrating supply chains, and leveraging network effects for mutual benefits.
Integration of information systems into strategic planning enhances competitiveness by optimizing
processes, fostering innovation, and leveraging synergies and network effects.

Question 8: Find out the challenges posed by strategic information systems and
how they should be addressed.

Ans:
Alignment with Business Objectives:
➢ Challenge: Ensuring alignment with business strategy.
➢ Addressing: Regularly review SIS strategies, enhance communication between IT and
business units.
Integration with Existing Systems:
Page 36 of 69
 © Md Sajid Hossain Shimanto

➢ Challenge: Complex integration with legacy systems.

➢ Addressing: Plan phased integration, prioritize data consistency, invest in integration
platforms.
Data Security and Privacy:
➢ Challenge: Protecting sensitive data and ensuring compliance.
➢ Addressing: Implement cybersecurity measures, conduct audits, ensure compliance with
data protection laws.
Change Management and User Resistance:
➢ Challenge: Employee resistance to SIS changes.
➢ Addressing: Implement comprehensive change management, involve users in decision-
making, and provide training programs.
Cost Management:
➢ Challenge: Managing SIS implementation and maintenance costs.
➢ Addressing: Develop realistic budgets, conduct cost-benefit analyses, and prioritize
investments strategically.
Technical Complexity:
➢ Challenge: Dealing with the technical complexity of advanced technologies.
➢ Addressing: Hire skilled professionals, work with experienced vendors, and invest in
ongoing training.
Scalability:
➢ Challenge: Ensuring SIS can scale with growth.
➢ Addressing: Choose scalable architectures, assess performance regularly, and upgrade
infrastructure as needed.
Vendor Management:
➢ Challenge: Managing vendor relationships and SLAs.
➢ Addressing: Establish clear expectations in SLAs, conduct vendor evaluations, and
maintain open communication channels.
Regulatory Compliance:
➢ Challenge: Adhering to evolving regulations.
➢ Addressing: Stay informed, conduct regular compliance audits, and integrate compliance
measures into SIS design.
Innovation and Obsolescence:
➢ Challenge: Balancing innovation with technology obsolescence.

Page 37 of 69
 © Md Sajid Hossain Shimanto

➢ Addressing: Develop a technology roadmap, invest in future-proof technologies, and

foster a culture of continuous innovation.
Strategic Planning and Governance:
➢ Challenge: Establishing and maintaining effective governance.
➢ Addressing: Involve key stakeholders, define roles and responsibilities, and regularly
review and update governance structures.
Proactively addressing these challenges enhances the effectiveness and value of SIS, ensuring
alignment with business goals and sustained success.

Page 38 of 69
 © Md Sajid Hossain Shimanto

Chapter 4: Information Systems Security

Question 1: Identify the information system's vulnerability to destruction,

error, and abuse.

Ans: Identifying information systems vulnerabilities to destruction, error, and abuse is a critical
aspect of maintaining a secure and reliable IT infrastructure. Here are some common
vulnerabilities associated with these threats:
A. Destruction:
➢ Physical Threats: Physical damage to hardware components due to natural disasters (e.g.,
floods, earthquakes, fires) or human actions (e.g., vandalism, theft).
➢ Malware and Ransomware: Destructive software that can compromise the integrity of
data or render systems unusable. Ransomware, in particular, can encrypt data and demand
payment for its release.
➢ Hardware Failures: Malfunctions in hardware components, such as hard drives, power
supplies, or memory, leading to data loss or system downtime.
B. Error:
➢ Human Error: Mistakes made by users, administrators, or other personnel, such as
accidental deletion of critical files, misconfiguration of systems, or mishandling of
equipment.
➢ Software Bugs and Glitches: Coding errors or flaws in software applications that can lead
to system crashes, data corruption, or unintended behavior.
➢ Data Input Errors: Inaccurate or incomplete data entry by users can result in errors that
propagate through systems and databases.
C. Abuse:
➢ Unauthorized Access: Weak or compromised passwords, lack of proper access controls,
and inadequate authentication mechanisms can lead to unauthorized access and abuse of
system resources.
➢ Insider Threats: Malicious activities by individuals within an organization, such as
employees or contractors, who misuse their access privileges for personal gain or to harm
the organization.
➢ Social Engineering: Manipulation of individuals into divulging sensitive information or
performing actions that compromise security, often through deceptive means.
To identify and address these vulnerabilities, organizations can implement a comprehensive
approach to cybersecurity, including:
➢ Conducting regular risk assessments and security audits.
➢ Implementing and enforcing access controls and authentication mechanisms.
➢ Regularly updating and patching software to address known vulnerabilities.
Page 39 of 69
 © Md Sajid Hossain Shimanto

➢ Educating users and personnel about security best practices and potential threats.
➢ Backing up data regularly and implementing disaster recovery plans.
➢ Monitoring network traffic and system logs for unusual or suspicious activities.
➢ It's important for organizations to stay informed about the evolving threat landscape and
adopt a proactive stance in addressing vulnerabilities to ensure the confidentiality, integrity,
and availability of their information systems.

Question 2: Describe clearly how an IT system becomes vulnerable.

Ans: An IT system becomes vulnerable due to a variety of factors that expose weaknesses in its
defenses, making it susceptible to unauthorized access, data breaches, disruptions, or abuse. Here
are some common ways in which vulnerabilities can emerge:
Software Bugs and Flaws:
➢ Coding Errors: Developers may inadvertently introduce bugs or errors during the
software development process. These mistakes can create vulnerabilities that malicious
actors could exploit.
➢ Outdated Software: Failure to apply patches and updates to software leaves systems
exposed to known vulnerabilities. Attackers often target outdated software with known
exploits.
Weak or Compromised Credentials:
➢ Weak Passwords: The use of easily guessable passwords or passwords that are not
complex enough can provide an entry point for attackers.
➢ Credential Sharing: Users sharing login credentials or using the same password across
multiple accounts increases the risk of unauthorized access.
Insufficient Access Controls:
➢ Improper Configuration: Incorrectly configured access controls, permissions, and user
roles can lead to unauthorized individuals gaining elevated privileges within the system.
➢ Inadequate Authentication: Weak authentication mechanisms or the absence of multi-
factor authentication can make it easier for unauthorized users to gain access.
Social Engineering:
➢ Phishing Attacks: Deceptive emails, messages, or websites trick users into revealing
sensitive information, such as usernames and passwords.
➢ Manipulation: Attackers may exploit human psychology to manipulate individuals into
divulging confidential information or performing actions that compromise security.

Outdated Hardware:

Page 40 of 69
 © Md Sajid Hossain Shimanto

➢ Obsolete Technology: Using outdated hardware that no longer receives security updates
can expose systems to vulnerabilities that have been addressed in newer versions.
Unpatched Systems:
➢ Delay in Patching: Organizations that do not promptly apply security patches and updates
are at risk of exploitation by attackers who target known vulnerabilities.
Lack of Security Awareness:
➢ Untrained Users: Insufficient training and awareness programs for users can result in
inadvertent security breaches due to actions like clicking on malicious links or
downloading infected files.
Inadequate Network Security:
➢ Unsecured Networks: Failure to implement proper network security measures, such as
firewalls and intrusion detection systems, can expose the system to unauthorized access
and attacks.
Physical Security Weaknesses:
➢ Unprotected Hardware: Lack of physical security measures, such as secure server rooms
and access controls, can make it easier for unauthorized individuals to tamper with or steal
hardware.
Supply Chain Risks:
➢ Third-party Software: Integrating third-party software without assessing its security can
introduce vulnerabilities if the software is poorly designed or maintained.
To mitigate these vulnerabilities, organizations must adopt a holistic approach to cybersecurity,
including regular security audits, employee training, timely software updates, and the
implementation of best practices in access control and network security. Regular risk assessments
and proactive monitoring are crucial components of a robust cybersecurity strategy.

Page 41 of 69
 © Md Sajid Hossain Shimanto

Question 3: Define the business value of security and control.

Ans: The business value of security and control in an organization is multifaceted and extends
across various aspects of its operations, reputation, and overall well-being. Here are key elements
that define the business value of security and control:
Protection of Assets:
➢ Data Protection: Security measures safeguard sensitive and confidential data, protecting
the organization from unauthorized access, data breaches, and the potential legal and
financial consequences associated with data loss.
➢ Intellectual Property Protection: Controls help safeguard intellectual property, trade
secrets, and proprietary information, preserving the organization's competitive advantage.
Risk Management:
➢ Mitigation of Financial Loss: Security measures and controls reduce the risk of financial
losses associated with cyber-attacks, fraud, or other security incidents, ensuring the
organization's financial stability.
➢ Regulatory Compliance: Compliance with industry regulations and legal requirements is
facilitated through effective security controls, minimizing the risk of regulatory fines and
legal actions.
Operational Continuity:
➢ Business Continuity and Disaster Recovery: Robust security measures contribute to the
resilience of the organization, ensuring that critical business operations can continue in the
face of disruptions, whether caused by cyber threats, natural disasters, or other
emergencies.
➢ Minimized Downtime: Controls help prevent and mitigate the impact of cyber incidents,
reducing downtime and maintaining operational efficiency.
Reputation Management:
➢ Customer Trust: Demonstrating a commitment to security and control fosters trust among
customers, partners, and stakeholders, enhancing the organization's reputation and
customer relationships.
➢ Brand Protection: Effective security practices protect the organization's brand from
negative publicity and reputational damage that can result from security breaches or data
compromises.

Competitive Advantage:

Page 42 of 69
 © Md Sajid Hossain Shimanto

➢ Market Differentiation: A strong focus on security and control can be a differentiator in

the market, attracting customers who prioritize the protection of their data and fostering a
competitive advantage.
➢ Client Assurance: Security controls provide assurance to clients and business partners that
the organization takes its responsibilities seriously, potentially leading to increased
collaboration and business opportunities.
Cost Savings:
➢ Reduced Incident Response Costs: Proactive security measures can help prevent security
incidents, reducing the need for extensive incident response efforts and associated costs.
➢ Insurance Premiums: Strong security controls may lead to lower cybersecurity insurance
premiums, contributing to overall cost savings.
Employee Productivity and Morale:
➢ Workplace Stability: Employees can work more effectively and confidently in a secure
environment, knowing that their work and personal information are protected.
➢ Job Satisfaction: A secure and controlled work environment contributes to employee
satisfaction and morale, reducing the risk of turnover.
Strategic Decision-Making:
➢ Informed Decision-Making: Security controls provide the necessary foundation for
informed strategic decision-making by ensuring the availability, integrity, and
confidentiality of information critical to the decision-making process.
➢ Business Expansion: A secure foundation allows for more confident expansion into new
markets or the adoption of new technologies, supporting strategic growth initiatives.
In summary, security and control contribute significantly to the overall resilience, reputation, and
success of an organization. The business value lies not only in protecting assets and mitigating
risks but also in creating a foundation for trust, competitiveness, and sustained growth.

Question 4: Identify the components of an organizational framework for

security and control.

Ans:
➢ Security Policies and Procedures:
o Documented security policies
o Guidelines and procedures for security practices
➢ Risk Management:
o Regular risk assessments
o Mitigation strategies for identified risks
➢ Access Control:

Page 43 of 69
 © Md Sajid Hossain Shimanto

o User authentication and authorization mechanisms

o Policies defining access rules
➢ Incident Response and Management:
o Incident response plan
o Incident reporting channels
o Security Awareness and Training:
o Employee training programs
o Phishing awareness initiatives
➢ Security Monitoring and Surveillance:
o SIEM systems for real-time monitoring
o Logging and auditing for security event analysis
➢ Data Protection and Privacy:
o Data encryption measures
o Privacy policies for compliance
➢ Physical Security:
o Access controls for facilities
o Surveillance systems for physical access monitoring
➢ Vendor and Third-Party Management:
o Security assessments for third-party vendors
o Inclusion of security requirements in contracts
➢ Security Technology Stack:
o Firewalls, antivirus, anti-malware solutions
o Intrusion Detection and Prevention Systems (IDPS)
➢ Compliance and Legal Considerations:
o Adherence to regulatory compliance
o Legal collaboration for incident response and compliance
➢ Governance and Management Oversight:
o Defined governance structure
o Board and executive involvement in security decisions
➢ Continuous Improvement:
o Periodic security audits and assessments
o Feedback mechanisms for ongoing enhancement

Page 44 of 69
 © Md Sajid Hossain Shimanto

Question 5: Demonstrate the most important tools and technologies for

safeguarding information resources.

Ans: To safeguard information resources effectively, organizations utilize a combination of tools

and technologies. Key components include:
➢ Firewalls: Control network traffic based on security rules.
➢ Antivirus Software: Detect and remove malicious software.
➢ Intrusion Detection and Prevention Systems (IDPS): Monitor and respond to security
threats.
➢ Encryption: Secure data at rest and in transit.
➢ Access Control Systems: Manage user access to information resources.
➢ Multi-Factor Authentication (MFA): Require multiple forms of identification for access.
➢ Security Information and Event Management (SIEM): Collect and analyze log data for
security events.
➢ Patch Management Systems: Automate software and system updates.
➢ Security Awareness Training: Educate users on security best practices.
➢ Backup and Disaster Recovery Solutions: Ensure data backup and recovery plans are in
place.
Regular monitoring, updates, and user education are crucial for maintaining a strong information
security strategy.

Question 6: Describe how computer forensics need to be carried out as per

CISA guidelines. What are four major considerations in the chain of events
regarding evidence in computer forensics?

Ans: When conducting computer forensics following CISA guidelines, there are four key
considerations in the chain of events:
➢ Identification and Collection:
o Preserve evidence by creating a forensic image.
o Maintain a chain of custody to track possession changes.
➢ Examination and Analysis:
o Use appropriate tools for thorough data analysis.
o Document findings and actions taken during the analysis.
➢ Documentation and Reporting:
o Prepare a comprehensive report detailing the investigation process.
o Ensure documentation complies with legal standards.
➢ Presentation of Findings:
o Communicate findings effectively to non-technical stakeholders.
o Be prepared to provide expert testimony in legal proceedings.

Page 45 of 69
 © Md Sajid Hossain Shimanto

Following these considerations ensures the integrity of digital evidence and a thorough, defensible
investigation.

Question 7: What are the basic security guideline to Prevent Hacking?

Ans:
➢ Passwords and Authentication:
o Use strong, complex passwords.
o Implement Multi-Factor Authentication (MFA).
➢ Software and Updates:
o Regularly update operating systems and software.
o Install and update antivirus and anti-malware software.
➢ Network Security:
o Configure firewalls for network traffic control.
o Secure Wi-Fi networks with strong encryption.
➢ Data Protection:
o Conduct regular backups of important data.
o Encrypt sensitive data in transit and at rest.
➢ User Education:
o Train employees on security best practices.
o Raise awareness about social engineering tactics.
➢ Access Control:
o Limit user privileges to the minimum necessary.
o Monitor and control physical access to critical infrastructure.
➢ Monitoring and Response:
o Monitor network activity for suspicious behavior.
o Develop and practice an incident response plan.
➢ Security Audits:
o Conduct regular security audits and assessments.
➢ Stay Informed:
o Stay updated on cybersecurity threats and trends.
These measures collectively contribute to a comprehensive cybersecurity strategy.

Page 46 of 69
 © Md Sajid Hossain Shimanto

Question 8: Write down several ethical issues regarding how the use of
information technologies in business affects employment, individuality,
working conditions, privacy, crime, health, and solutions to societal problems.

Ans:
➢ Employment:
o Job Displacement
o Skill Gaps
➢ Individuality:
o Surveillance and Control
o Dehumanization
➢ Working Conditions:
o Digital Fatigue
o Remote Work Disparities
➢ Privacy:
o Data Breaches
o Invasive Technologies
➢ Crime:
o Cybercrime
o Technology-Enabled Fraud
➢ Health:
o Digital Addiction
o Ergonomic Concerns
Solutions to Societal Problems:
• Equitable Access
• Ethical AI Development
• Corporate Social Responsibility

Question 9: Categorize several types of security management strategies and

defenses and explain how they can be used to ensure the security of business
applications of information technology.

Ans: To ensure the security of business applications in information technology, various security
management strategies and defenses can be employed:
➢ Access Control: Restrict access based on user roles and permissions.
➢ Firewalls: Control and monitor network traffic to prevent unauthorized access.
➢ Encryption: Protect sensitive data by converting it into a coded format.

Page 47 of 69
 © Md Sajid Hossain Shimanto

➢ Intrusion Detection and Prevention Systems (IDPS): Monitor for malicious activities
and respond in real-time.
➢ Security Patching and Updates: Keep software and applications up-to-date to address
vulnerabilities.
➢ Incident Response Planning: Develop procedures to manage and recover from security
incidents.
➢ Security Awareness Training: Educate employees about security risks and best practices.
➢ Multi-Factor Authentication (MFA): Require multiple forms of identification for access.
➢ Regular Security Audits and Assessments: Periodically evaluate and improve security
measures.
➢ Data Backup and Recovery: Back up critical data and establish recovery procedures.
Implementing these measures creates a comprehensive security posture, safeguarding business
applications and information from a range of threats in the dynamic IT landscape. Regular
adaptation and vigilance are essential for effective security management.

Question 10: Evaluate the information security and privacy policies, standards
and procedures for completeness, alignment with generally accepted practices
and compliance with applicable external requirements.

Ans:
➢ Completeness:
o Verify coverage of all relevant aspects of information security and privacy.
o Ensure policies address the entire information lifecycle.
➢ Alignment with Generally Accepted Practices:
o Compare against industry standards (ISO/IEC 27001, NIST).
o Incorporate best practices for security and privacy.
➢ Compliance with Applicable External Requirements:
o Align with legal and regulatory requirements.
o Meet contractual obligations specified in agreements.
➢ Consistency and Interoperability:
▪ Avoid conflicting guidelines across policies.
o Ensure policies work together seamlessly.
➢ Risk Management:
o Integrate risk management principles.
o Be adaptable to evolving threats and technology changes.
➢ Documentation:
o Ensure clarity and accessibility of policies.
o Maintain version control to track changes.
➢ Training and Awareness:
o Train employees on policies and responsibilities.

Page 48 of 69
 © Md Sajid Hossain Shimanto

o Implement awareness programs.

➢ Incident Response:
o Define effective incident response procedures.
o Regularly test through simulations and exercises.
➢ Monitoring and Auditing:
o Include provisions for continuous monitoring.
o Conduct regular audits for compliance and effectiveness.
➢ Feedback and Improvement:
o Establish feedback mechanisms from stakeholders.
o Regularly review and update policies for continuous improvement.

Question 11: Evaluate the design, implementation, maintenance, monitoring

and reporting of physical and environmental controls to determine whether
information assets are adequately safeguarded.

Ans:
➢ Design: Assess the design of physical access controls, surveillance systems, and
environmental controls.
➢ Implementation: Verify proper implementation of security measures, personnel training,
and emergency response plans.
➢ Maintenance: Conduct regular inspections, ensure equipment maintenance, and update
documentation.
➢ Monitoring: Implement real-time monitoring, detect unauthorized access, and audit access
logs.
➢ Reporting: Establish incident reporting, compliance reporting, and performance metrics.
➢ Integration: Align physical and environmental controls with broader information security
policies.
➢ Adaptability and Scalability: Assess ability to adapt to changes and accommodate
growth.
➢ Testing and Exercises: Regularly test and simulate scenarios to assess effectiveness.
➢ Vendor and Third-Party Assessments: Evaluate third-party facilities and vendors for
security standards.
➢ Continuous Improvement: Establish a process for refining controls based on lessons
learned and changing threats.

Page 49 of 69
 © Md Sajid Hossain Shimanto

Chapter 5: Developing Business/IT Solutions

Question 1: Use the systems development process outlined as problem-solving

frameworks to propose information systems solutions to simple business
problems.

Ans: The systems development process is a structured approach to solving business problems
through the development and implementation of information systems. It typically involves several
phases, and I'll use a simplified version of this process to propose solutions to two simple business
problems.
Business Problem 1: Inventory Management
1) Problem Identification: The business is facing challenges in tracking and managing its
inventory efficiently. Manual processes are time-consuming and prone to errors.
2) Feasibility Study: Assess the benefits of implementing an automated inventory
management system. Consider the costs, benefits, and technical requirements.
3) System Design: Design a user-friendly interface for entering and updating inventory data.
4) Implement a database to store real-time inventory information.
5) Implementation: Develop the inventory management system based on the design
specifications. Train staff on how to use the new system.
6) Testing: Conduct thorough testing to identify and fix any bugs or issues. Ensure that the
system meets the business requirements.
7) Deployment: Roll out the inventory management system to all relevant departments.
Monitor the system's performance in a real-world environment.
8) Maintenance and Evaluation: Provide ongoing support and maintenance for the system.
Regularly evaluate the system's effectiveness and make improvements as needed.

Business Problem 2: Customer Relationship Management (CRM)

1) Problem Identification: The business lacks a centralized system for managing customer
interactions. Customer information is scattered across different departments.
2) Feasibility Study: Assess the advantages of implementing a CRM system. Consider the
impact on customer satisfaction, sales, and marketing efforts.
3) System Design: Design a CRM system that consolidates customer data and interactions.
Include features for tracking customer communications and preferences.
4) Implementation: Develop the CRM system, integrating it with existing databases and
systems.
5) Provide training for employees on how to use the CRM system effectively.
6) Testing: Conduct extensive testing to ensure the CRM system works seamlessly. Address
any issues that arise during testing.

Page 50 of 69
 © Md Sajid Hossain Shimanto

7) Deployment: Introduce the CRM system across all customer-facing departments. Monitor
user adoption and provide additional training as needed.
8) Maintenance and Evaluation: Regularly update the CRM system to meet changing
business needs. Evaluate the impact of the CRM system on customer relationships and
adjust strategies accordingly.
In both cases, the systems development process provides a structured approach to identify, design,
implement, and maintain information systems that address specific business problems. This
methodology helps ensure that the solutions are well-thought-out, meet the business requirements,
and can adapt to changing needs over time.

Question 2: Describe and illustrate how to use each of the steps of the
information systems development life cycle to develop and implement a
business information system.

Ans: The Information Systems Development Life Cycle (ISDLC) is a systematic process for
planning, creating, testing, and deploying an information system. It typically consists of several
phases, each with specific steps. Here is a general overview of the steps involved in each phase,
along with illustrations:
1. Initiation Phase:
• Step 1: Identify the Need for a System
o Illustration: Identify a business problem or opportunity.
• Step 2: Define Objectives and Scope
o Illustration: Set clear goals and boundaries for the project.
2. Planning Phase:
• Step 3: Develop Project Plan
o Illustration: Create a detailed project plan outlining tasks, timelines, and resources.
• Step 4: Conduct Feasibility Study
o Illustration: Assess technical, economic, and operational feasibility.
3. Analysis Phase:
• Step 5: Gather and Analyze Requirements
o Illustration: Interview stakeholders, analyze documents, and create use cases.
• Step 6: Model the System
o Illustration: Create data flow diagrams, entity-relationship diagrams, and other
models.
4. Design Phase:
• Step 7: Design the System Architecture

Page 51 of 69
 © Md Sajid Hossain Shimanto

o Illustration: Develop a high-level design, including hardware and software

components.
• Step 8: Design the User Interface
o Illustration: Create wireframes and prototypes for user interaction.
5. Implementation Phase:
• Step 9: Develop Software
o Illustration: Write code and build the system according to the design.
• Step 10: Conduct Unit Testing
o Illustration: Test individual components to ensure they function correctly.
6. Testing Phase:
• Step 11: Conduct System Testing
o Illustration: Test the entire system to identify and fix any issues.
• Step 12: Conduct User Acceptance Testing (UAT)
o Illustration: Validate the system with end-users to ensure it meets their
requirements.
7. Deployment Phase:
• Step 13: Deploy the System
o Illustration: Install the system in the production environment.
• Step 14: Train Users
o Illustration: Provide training to users on how to use the new system.
8. Maintenance and Support Phase:
• Step 15: Monitor and Maintain the System
o Illustration: Monitor system performance, fix bugs, and make updates as needed.
• Step 16: Provide Ongoing Support
o Illustration: Offer support to users and address any issues that arise.

Question 3: Explain how prototyping can be used as an effective technique to

improve the process of systems development for end users and IS specialists.

Ans: Prototyping is a valuable technique in the systems development process that involves creating
a working model of the system to gather user feedback and refine system requirements. It can
significantly improve the process of systems development for both end users and Information
Systems (IS) specialists in several ways:
For End Users:

Page 52 of 69
 © Md Sajid Hossain Shimanto

➢ User Involvement and Feedback: Prototyping encourages active participation from end
users throughout the development process. Users can interact with a tangible representation
of the system early on, providing feedback on design, functionality, and usability.
➢ Improved Understanding: Prototypes offer users a concrete understanding of how the
final system will look and function, making it easier for them to communicate their
requirements and expectations.
➢ Early Detection of Issues: Users can identify issues and suggest modifications during the
prototyping phase, reducing the likelihood of major problems in the final product.
➢ Increased User Satisfaction: As users see their feedback incorporated into the evolving
prototype, they feel more invested in the project and are likely to be more satisfied with
the final product.
For IS Specialists:
➢ Clarification of Requirements: Prototyping helps IS specialists and developers clarify
and refine system requirements by providing a visual representation that can be used for
discussions with stakeholders.
➢ Reduced Miscommunication: Visual prototypes minimize the chances of
miscommunication between developers and users, as both parties can see and interact with
a tangible representation of the system.
➢ Risk Mitigation: Identifying and addressing potential issues early in the development
process reduces the risk of costly errors and modifications later in the project.
➢ Accelerated Development: Prototyping can accelerate the development process by
allowing for incremental development and testing, as opposed to waiting until the end to
unveil the entire system.
➢ Facilitates Iterative Development: Prototyping supports an iterative development
process, enabling quick adjustments based on user feedback. This iterative approach
contributes to the continuous improvement of the system.
➢ Enhanced Collaboration: Collaboration between IS specialists and end users is enhanced
as both parties actively participate in the prototyping process, fostering better
communication and understanding.
Overall Benefits:
➢ Cost Savings: Early detection and correction of issues in the prototyping phase are more
cost-effective than addressing problems in the later stages of development or after the
system is deployed.
➢ Increased Success Rates: Prototyping contributes to higher success rates by aligning the
final system more closely with user expectations and requirements.
➢ Adaptability: Prototyping allows for adaptability to changing requirements, making it
well-suited for projects where the requirements are not well-defined or may evolve.
In summary, prototyping serves as a powerful tool in systems development by fostering
collaboration, improving communication, and enabling an iterative approach, ultimately resulting
in a more successful and user-friendly final product.

Page 53 of 69
 © Md Sajid Hossain Shimanto

Question 4: Demonstrate the basics of project management and their

importance to a successful system development effort.

Ans: Project management is crucial for the successful development of a system. It involves
planning, organizing, and overseeing the execution of a project from initiation to completion. Here
are the basics of project management and their importance in the context of system development:
➢ Project Initiation: Definition: Clearly define the project scope, objectives, and
deliverables. Importance: Provides a clear understanding of what needs to be
accomplished, setting the foundation for the entire project.
➢ Project Planning: Definition: Develop a comprehensive project plan that includes tasks,
timelines, resource allocation, and budget. Importance: Helps in identifying potential risks,
allocating resources effectively, and setting realistic expectations for the project's timeline
and budget.
➢ Risk Management: Definition: Identify, assess, and manage potential risks to the project.
o Importance: Minimizes the impact of unforeseen events, ensuring the project stays
on track and within scope.
➢ Resource Management:
o Definition: Allocate and manage resources (human, financial, and technological)
efficiently.
o Importance: Ensures that the right people with the right skills are available when
needed, preventing delays and optimizing productivity.
➢ Task and Time Management:
o Definition: Break down the project into tasks, set timelines, and monitor progress.
o Importance: Helps in meeting deadlines, identifying bottlenecks, and ensuring that
the project progresses according to the plan.
➢ Communication Management:
o Definition: Establish effective communication channels among team members,
stakeholders, and other relevant parties.
o Importance: Facilitates information flow, reduces misunderstandings, and fosters
collaboration, which is essential for successful system development.
➢ Quality Management:
o Definition: Define and implement processes to ensure the quality of deliverables.
o Importance: Ensures that the system being developed meets the specified
requirements and standards, reducing the likelihood of errors and rework.
➢ Change Management:
o Definition: Implement a process for handling changes to project scope, schedule,
or resources.
o Importance: Helps in managing changes effectively, preventing scope creep and
maintaining control over the project's direction.
➢ Monitoring and Control:

Page 54 of 69
 © Md Sajid Hossain Shimanto

o Definition: Regularly track and measure project performance against the plan,
making adjustments as necessary.
o Importance: Allows for early identification of issues, enabling timely corrective
actions and preventing the project from deviating too far from the original plan.
➢ Closure and Evaluation:
o Definition: Ensure that all project activities are completed, and conduct a post-
project evaluation.
o Importance: Provides an opportunity to learn from the project, identify areas for
improvement, and gather insights for future projects.

By implementing these project management basics, a system development effort can be more
organized, efficient, and ultimately more likely to succeed. Effective project management helps
teams navigate challenges, adapt to changes, and deliver a high-quality system within the specified
constraints.

Question 5: Identify the activities involved in the implementation of new

information systems

Ans: The implementation of new information systems involves a series of activities to ensure a
smooth transition from development to operational use. Here are key activities typically involved
in the implementation process:
➢ Installation of Hardware and Software:
o Physically set up and install the necessary hardware components.
o Install and configure the software applications and systems.
➢ Data Migration:
o Transfer existing data to the new system.
o Verify the accuracy and completeness of the migrated data.
➢ Training:
o Provide training sessions for end-users, administrators, and support staff.
o Ensure that users are familiar with the new system's features and functionalities.
➢ Testing:
o Conduct thorough testing of the new system to identify and address any issues.
o Perform system integration testing to ensure compatibility with existing systems.
➢ Parallel Run and Pilot Testing:
o Run the new system in parallel with the existing one to ensure consistency and
identify potential issues.
o Conduct pilot testing in a limited environment to gather user feedback and address
any remaining issues.
➢ Change Management:

Page 55 of 69
 © Md Sajid Hossain Shimanto

o Implement change management processes to facilitate a smooth transition and

address resistance to change.
o Communicate changes effectively to stakeholders.
➢ Documentation:
o Create comprehensive documentation for the new system, including user manuals,
system architecture, and technical documentation.
o Ensure that documentation is easily accessible for reference.
➢ Configuration and Customization:
o Configure the system settings based on organizational requirements.
o Implement any necessary customizations or modifications to align the system with
specific business processes.
➢ Security Implementation:
o Implement security measures to protect the system and its data.
o Set up user access controls, encryption, and other security protocols.
➢ Performance Tuning:
o Optimize the system's performance based on usage patterns and requirements.
o Monitor system resources and make adjustments as needed.
➢ Rollout and Deployment:
o Gradually deploy the new system across different departments or locations.
o Monitor the deployment process to address any issues that may arise.
➢ Post-Implementation Support:
o Provide ongoing support to users after the system is live.
➢ Establish a helpdesk or support system to address user queries and issues.
o Monitoring and Evaluation:
o Continuously monitor the system's performance and user feedback.
o Evaluate the success of the implementation against predefined criteria.
➢ Feedback and Optimization:
o Gather feedback from users and stakeholders to identify areas for improvement.
o Implement optimizations and updates based on feedback and changing business
needs.
➢ Project Closure:
o Officially close the implementation project.
o Conduct a project review to capture lessons learned and improve processes for
future projects.
o Effective coordination and communication among stakeholders, careful planning,
and thorough testing are critical to the success of the implementation phase in the
development of new information systems.

Page 56 of 69
 © Md Sajid Hossain Shimanto

Question 6: Write done the features, advantages and disadvantages of the four
basic system conversion strategies.

Ans: System conversion refers to the process of transitioning from an old information system to a
new one. There are four basic system conversion strategies:
Direct Cutover (or Cold Turkey Conversion):
➢ Features:
o Involves an immediate transition from the old system to the new one.
o Minimal overlap between the two systems.
o Quick and straightforward.
➢ Advantages:
o Rapid implementation.
o Cost-effective in terms of time and resources.
➢ Disadvantages:
o High risk due to the sudden switch.
o Potential for disruption to business operations.
o Limited fallback options if issues arise.
Parallel Conversion:
➢ Features:
o Both the old and new systems run simultaneously for a certain period.
o Data is entered and processed in both systems.
➢ Advantages:
o Lower risk compared to direct cutover.
o Allows for a gradual transition and thorough testing.
➢ Disadvantages:
o Increased resource requirements to maintain and operate both systems.
o Potential for data inconsistencies between systems.
Phased Conversion:
➢ Features:
o Implementation occurs in stages or phases.
o Each phase involves a different module or business function.
➢ Advantages:
o Gradual transition minimizes risk and disruption.
o Allows for learning and adjustments between phases.
➢ Disadvantages:
o Extended implementation timeline.
o Complexity increases as each phase may depend on the success of the previous one.
Pilot Conversion:

Page 57 of 69
 © Md Sajid Hossain Shimanto

➢ Features:
o The new system is implemented in a single part of the organization first.
o Once successful, it is rolled out to the entire organization.
➢ Advantages:
o Allows for testing in a real-world environment with reduced risk.
o Provides an opportunity to fine-tune the system based on initial feedback.
➢ Disadvantages:
o Potential for limited scope and applicability.
o Challenges in scaling up to the entire organization.

Choosing the most suitable conversion strategy depends on various factors such as the nature of
the business, the size of the organization, available resources, and the level of risk tolerance. Each
strategy has its own set of advantages and disadvantages, and the decision should be based on a
thorough analysis of the specific context and requirements.

Page 58 of 69
 © Md Sajid Hossain Shimanto

Question 7: Describe several evaluation factors that should be considered in

evaluating the acquisition of hardware, software, and IS services.

Ans: When evaluating the acquisition of hardware, software, and Information Systems (IS)
services, organizations should consider several key factors to ensure that the selected solutions
align with their business objectives, are cost-effective, and meet their specific needs. Here are
several evaluation factors to consider:
Hardware Acquisition:
➢ Performance Requirements:
o Evaluate if the hardware meets the performance specifications required for the
intended use.
o Consider factors such as processing speed, memory capacity, storage capabilities,
and scalability.
➢ Reliability and Availability:
o Assess the reliability and availability of the hardware to ensure uninterrupted
operation.
o Consider features like redundancy, fault tolerance, and maintenance requirements.
➢ Compatibility:
o Ensure compatibility with existing systems and infrastructure.
o Check for compatibility with relevant software applications and peripherals.
➢ Scalability:
o Assess whether the hardware can scale to accommodate future growth in user
numbers or data volume.
➢ Total Cost of Ownership (TCO):
o Consider not only the upfront costs but also ongoing expenses such as maintenance,
support, and energy consumption.
➢ Vendor Reputation:
o Research the reputation of the hardware vendor, considering factors like customer
reviews, warranty, and after-sales support.

Software Acquisition:
➢ Functionality and Features:
o Evaluate if the software provides the required functionality and features to meet
business requirements.
o Consider future needs and the software's ability to scale.
➢ Ease of Use and User Interface:

o Assess the user-friendliness of the software and the intuitiveness of its user
interface.

Page 59 of 69
 © Md Sajid Hossain Shimanto

o User training requirements should also be taken into account.

➢ Integration Capabilities:
o Ensure that the software can integrate seamlessly with existing systems and other
software applications.
➢ Customization and Flexibility:
o Evaluate the level of customization the software allows to adapt to specific business
processes.
o Consider the flexibility to accommodate future changes.
➢ Security:
o Assess the software's security features and compliance with industry standards and
regulations.
o Vendor Support and Maintenance:
o Evaluate the vendor's support services, including maintenance, updates, and
responsiveness to issues.
➢ IS Services Acquisition:
o Service Level Agreements (SLAs):
o Clearly define and assess SLAs to ensure that the IS services meet the organization's
performance expectations.
➢ Scalability and Flexibility:
o Evaluate the IS services' ability to scale with the organization's growth and adapt to
changing requirements.
➢ Data Security and Privacy:
o Assess the security measures in place to protect sensitive data and ensure
compliance with data privacy regulations.
➢ Reliability and Availability:
o Ensure that the IS services are reliable, with minimal downtime and high
availability.
➢ Cost Structure:
o Understand the cost structure of the IS services, including any hidden costs, to
determine long-term affordability.
➢ Vendor Reputation and Expertise:
o Consider the reputation and expertise of the service provider, including their track
record with similar organizations.
By carefully considering these factors, organizations can make informed decisions when acquiring
hardware, software, and IS services, ultimately contributing to the success of their IT initiatives.

Page 60 of 69
 © Md Sajid Hossain Shimanto

Chapter 6: Information Systems Auditing

Question 1: How do you execute a risk-based IS audit strategy in compliance

with IS audit standards to ensure that key risk areas are audited?
Ans: Executing a risk-based IS audit strategy in compliance with IS audit standards involves a systematic
approach to identifying, assessing, and prioritizing risks in information systems and then planning and
conducting audit activities based on those risk assessments. Below are the key steps to execute a risk-based
IS audit strategy:
➢ Establish the Audit Objectives: Clearly define the objectives of the IS audit. These objectives
should align with the overall business objectives and information security goals.
➢ Understand the Business Environment: Gain a comprehensive understanding of the business
environment, including the industry, regulatory requirements, and the organization's mission,
vision, and strategic objectives.
➢ Identify and Prioritize Risks: Identify and assess information security risks. This involves
evaluating the potential impact and likelihood of various risks, considering factors such as
vulnerabilities, threats, and the effectiveness of existing controls. Prioritize risks based on their
significance and potential impact on the achievement of business objectives.
➢ Define the Audit Universe: Identify and document the scope of the audit universe, including the
systems, processes, and assets that are within the scope of the audit.
➢ Develop an Audit Plan: Develop an audit plan that outlines the audit approach, scope, objectives,
and activities. The plan should be based on the prioritized risks identified earlier. Consider using a
risk-based audit methodology, such as the COBIT (Control Objectives for Information and Related
Technologies) framework, to guide the audit planning process.
➢ Allocate Resources: Allocate resources, including audit personnel and tools, based on the
identified risks and the scope of the audit plan.
➢ Conduct the Audit: Execute the audit plan, focusing on key risk areas. This may involve assessing
the effectiveness of existing controls, testing compliance with policies and procedures, and
identifying vulnerabilities or weaknesses in information systems.
➢ Document Findings: Document audit findings, including identified risks, control deficiencies, and
recommendations for improvement.
➢ Communicate Results: Communicate audit results to relevant stakeholders, including
management and those responsible for information security. Clearly present the impact of identified
risks and the recommended actions to address them.
➢ Follow-Up and Monitor: Monitor the implementation of audit recommendations and assess the
effectiveness of corrective actions taken by the organization. Conduct follow-up audits as needed
to ensure that key risk areas are effectively addressed over time.
➢ Document the Audit Process: Maintain comprehensive documentation of the entire audit process,
including risk assessments, audit plans, working papers, and reports. This documentation is
essential for compliance with IS audit standards.
➢ Continuous Improvement: Continuously improve the risk-based IS audit strategy by
incorporating lessons learned from previous audits, staying informed about emerging risks and
technologies, and adapting audit processes accordingly.

Page 61 of 69
 © Md Sajid Hossain Shimanto

By following these steps, an organization can effectively execute a risk-based IS audit strategy in alignment
with IS audit standards and best practices.

Question 2: Write down how you plan specific audits to determine whether
information systems are protected, controlled and provide value to the
organization.
Ans: Planning specific audits to determine whether information systems are protected, controlled, and
provide value to the organization involves a systematic and risk-based approach. Below is a detailed outline
of the steps involved in planning such audits:
➢ Define Audit Objectives: Clearly articulate the objectives of the audit. These objectives should
align with the overall business goals and focus on assessing the protection, control, and value
provided by the information systems.
➢ Understand Business Objectives and Risks: Gain a deep understanding of the organization's
business objectives and key risks. Identify how information systems contribute to achieving
business goals and where potential risks may exist.
➢ Identify Key Information Systems: Identify the critical information systems that are integral to
the organization's operations. This includes both core business applications and supporting
infrastructure.
➢ Conduct Risk Assessment: Perform a comprehensive risk assessment to identify and prioritize
potential risks associated with the selected information systems. Consider factors such as data
sensitivity, regulatory compliance, cybersecurity threats, and business impact.
➢ Define Audit Scope and Criteria: Clearly define the scope of the audit, specifying the information
systems, processes, and controls that will be evaluated. Establish audit criteria, including industry
best practices, regulatory requirements, and internal policies and standards.
➢ Select Audit Methodology: Choose an appropriate audit methodology or framework. Common
frameworks include COBIT, ISO/IEC 27001, and NIST Cybersecurity Framework. Align the
chosen methodology with the organization's goals and industry standards.
➢ Allocate Resources: Allocate the necessary resources for the audit, including skilled auditors,
tools, and technologies. Consider the expertise required for assessing specific technical aspects of
information systems.
➢ Develop Audit Plan: Develop a detailed audit plan outlining the approach, activities, and timeline.
The plan should address how each audit objective and criterion will be evaluated. Include specific
audit procedures, such as interviews, document reviews, system testing, and vulnerability
assessments.
➢ Engage Stakeholders: Communicate with key stakeholders, including management, IT staff, and
other relevant departments. Ensure that stakeholders are aware of the audit objectives, scope, and
their roles in supporting the audit.
➢ Conduct Preliminary Interviews: Conduct preliminary interviews with key personnel to gather
insights into the organization's information systems, control environment, and potential areas of
concern.
➢ Document Existing Controls: Document the existing information system controls, including
access controls, change management processes, incident response procedures, and any other
relevant controls in place.

Page 62 of 69
 © Md Sajid Hossain Shimanto

➢ Perform Gap Analysis: Conduct a gap analysis to compare the documented controls against the
established criteria. Identify any deficiencies or gaps in the control environment.
➢ Develop Testing Plan: Develop a testing plan that includes specific tests and assessments to be
conducted during the audit. This may involve penetration testing, vulnerability scanning, and other
technical assessments.
➢ Risk Mitigation Strategies: Propose risk mitigation strategies for identified control deficiencies.
Provide recommendations for improving the protection, control, and value provided by the
information systems.
➢ Prepare for Reporting: Prepare a reporting framework that clearly communicates the audit
findings, recommendations, and the overall risk posture of the information systems. Tailor the
report to the audience, providing both technical details for IT professionals and high-level
summaries for executive management.
➢ Review and Approval: Review the audit plan and findings with relevant stakeholders, seeking
their input and validation. Obtain approval from audit sponsors or oversight committees.
➢ Execute the Audit: Execute the audit plan, conducting the planned activities, tests, and
assessments. Gather evidence to support audit findings and ensure adherence to the established
criteria.
➢ Document Audit Results: Document the audit results, including any observations, findings, and
recommendations. Clearly link findings to the established audit objectives and criteria.
➢ Conduct Exit Interviews: Conduct exit interviews with key stakeholders to discuss preliminary
findings and gather additional insights.
➢ Draft Audit Report: Draft the final audit report, incorporating feedback received during the exit
interviews. The report should be clear, concise, and actionable.
➢ Finalize and Distribute Report: Finalize the audit report, ensuring accuracy and completeness.
Distribute the report to relevant stakeholders, including executive management, IT teams, and audit
oversight committees.
➢ Monitor Follow-Up Actions: Monitor and track the implementation of recommended actions and
control improvements. Ensure that the organization addresses identified deficiencies in a timely
manner.
➢ Continuous Improvement: Reflect on the audit process and outcomes. Identify opportunities for
continuous improvement in future audits, considering lessons learned and feedback from
stakeholders.
By following these steps, auditors can effectively plan and execute audits to assess whether information
systems are protected, controlled, and provide value to the organization.

Question 3: How do you conduct audits in accordance with IS audit standards

to achieve planned audit objectives?
Ans: Conducting audits in accordance with IS (Information Systems) audit standards involves a systematic
and structured approach to achieve planned audit objectives. Below are the key steps to conduct audits in
compliance with IS audit standards:
➢ Understand IS Audit Standards: Familiarize yourself with relevant IS audit standards,
frameworks, and guidelines. Common standards include ISACA's Information Systems Audit and
Assurance Standards (ISAE), which includes the IT Assurance Framework (ITAF).

Page 63 of 69
 © Md Sajid Hossain Shimanto

➢ Define Audit Objectives: Clearly define the audit objectives based on the scope of the audit,
organizational goals, and relevant IS audit standards. Ensure that the objectives align with the
expectations of stakeholders.
➢ Risk Assessment: Conduct a risk assessment to identify and prioritize potential risks associated
with the information systems under audit. Consider factors such as cybersecurity threats,
compliance requirements, and business impact.
➢ Develop Audit Plan: Develop a comprehensive audit plan that outlines the approach, methodology,
activities, and resources required to achieve the audit objectives. Ensure that the audit plan is in
alignment with IS audit standards and includes appropriate risk-based considerations.
➢ Allocate Resources: Allocate skilled auditors, tools, and technologies necessary for the audit.
Consider the expertise required for assessing specific technical aspects of information systems.
➢ Conduct Entry Meetings: Conduct entry meetings with key stakeholders, including management,
IT staff, and other relevant departments. Clearly communicate the audit objectives, scope, and
expected outcomes.
➢ Review Policies and Procedures: Review and understand relevant policies, procedures, and
guidelines related to information systems, security, and controls. Ensure that the audit plan aligns
with these documents.
➢ Perform Audit Procedures: Execute audit procedures as outlined in the audit plan. This may
involve a combination of interviews, document reviews, system testing, and other audit techniques.
Ensure that audit procedures adhere to IS audit standards and industry best practices.
➢ Evaluate Controls: Evaluate the effectiveness of controls in place, including general controls (e.g.,
access controls, change management) and application controls. Assess compliance with relevant
standards and regulations.
➢ Perform Technical Testing: If applicable, conduct technical testing such as vulnerability
assessments, penetration testing, and other assessments to identify weaknesses in information
systems.
➢ Document Audit Evidence: Document audit evidence systematically. Ensure that documentation
supports audit findings and conclusions. Follow IS audit standards for documentation and
workpaper retention.
➢ Conduct Exit Meetings: Hold exit meetings with key stakeholders to discuss preliminary findings,
gather feedback, and address any clarifications or additional information needed.
➢ Data Analysis: Perform data analysis as needed to identify patterns, anomalies, and trends in the
data relevant to the audit objectives. Use tools and techniques in compliance with IS audit
standards.
➢ Review Security Incidents: Review security incidents and responses to assess the effectiveness of
the organization's incident management and response capabilities.
➢ Evaluate Compliance: Evaluate compliance with relevant laws, regulations, and industry
standards. Verify that the organization follows best practices for information security and data
privacy.
➢ Prepare Audit Findings: Prepare clear and concise audit findings that highlight strengths,
weaknesses, and areas for improvement. Link findings to the established audit objectives and
criteria.
➢ Draft Audit Report: Draft the final audit report, adhering to IS audit standards for reporting. The
report should include an executive summary, detailed findings, recommendations, and a conclusion.
➢ Review and Approval: Review the audit report with relevant stakeholders, seeking input and
validation. Obtain approval from audit sponsors or oversight committees.

Page 64 of 69
 © Md Sajid Hossain Shimanto

➢ Finalize Audit Report: Finalize the audit report, ensuring accuracy and completeness. Address
any feedback received during the review process.
➢ Distribute Audit Report: Distribute the final audit report to key stakeholders, including executive
management, IT teams, and audit oversight committees. Ensure that the report is delivered in a
timely manner.
➢ Follow-Up Activities: Monitor the implementation of recommended actions and track the
resolution of identified issues. Conduct follow-up activities to ensure that the organization
addresses audit findings.
➢ Reflect and Improve: Reflect on the audit process and outcomes. Identify opportunities for
continuous improvement in future audits, considering lessons learned and feedback from
stakeholders.
By following these steps, auditors can conduct audits in accordance with IS audit standards, ensuring a
comprehensive and effective assessment of information systems in line with organizational goals and
industry best practices

Question 4. In the context of the important issue of risk, elaborate how exactly
audit risk should be assessed and treated.
Ans: Assessing and treating audit risk is a critical aspect of the audit process. Audit risk is the risk that the
auditor expresses an inappropriate audit opinion when the financial statements are materially misstated. It
is composed of inherent risk, control risk, and detection risk. Here's how audit risk should be assessed and
treated:
1. Assessment of Audit Risk:
A. Inherent Risk:
➢ Nature of the Entity and Industry: Understand the nature of the audited entity and its industry.
Certain industries may have inherent risks due to the nature of their operations.
➢ Complexity and Transactions: Evaluate the complexity of transactions and the structure of the
organization. More complex transactions may carry higher inherent risk.
B. Control Risk:
➢ Assessment of Internal Controls: Evaluate the design and implementation of internal controls.
Strong internal controls can mitigate control risk.
➢ Historical Performance: Consider the entity's historical performance in terms of internal control
effectiveness.
➢ Information Systems: Assess the effectiveness of information systems, especially those related to
financial reporting.
C. Detection Risk:
➢ Audit Procedures: Consider the effectiveness of planned audit procedures. More effective
procedures can reduce detection risk.
➢ Audit Evidence: Evaluate the reliability and sufficiency of audit evidence. Strong, relevant
evidence can decrease detection risk.

Page 65 of 69
 © Md Sajid Hossain Shimanto

2. Treatment of Audit Risk:

A. Inherent Risk:
➢ Thorough Understanding: Gain a thorough understanding of the audited entity and industry to
identify and assess inherent risks accurately.
➢ Professional Skepticism: Apply professional skepticism when assessing inherent risk, especially
in areas prone to manipulation or fraud.
➢ Use of Specialists: Engage industry specialists or subject matter experts to enhance the
understanding of inherent risks.
B. Control Risk:
➢ Evaluate Internal Controls: Evaluate the design and implementation of internal controls and
assess their effectiveness in preventing or detecting material misstatements.
➢ Substantive Procedures: If control risk is high, perform more substantive procedures to obtain
sufficient audit evidence.
C. Detection Risk:
➢ Effective Audit Procedures: Design and execute effective audit procedures to reduce detection
risk.
➢ Sample Size and Selection: Adjust sample sizes and selection criteria based on the assessed
detection risk.

3. Overall Risk Assessment:

➢ Risk Model: Utilize a risk model that considers the interplay between inherent risk, control risk,
and detection risk to calculate overall audit risk.
➢ Documentation: Document the assessment of audit risk and the rationale behind risk treatments.
4. Ongoing Monitoring and Adjustments:
➢ Continuous Monitoring: Continuously monitor changes in the audited entity, industry, or
regulatory environment that may impact audit risk.
➢ Adjustments: Adjust the audit plan and procedures based on changes in risk assessments during
the audit process.
5. Communication:
➢ Stakeholder Communication: Communicate effectively with stakeholders, including
management and those charged with governance, about the identified risks and the audit approach.
6. Documentation:
➢ Comprehensive Documentation: Maintain comprehensive documentation of the audit risk
assessment process, including the factors considered, decisions made, and the basis for those
decisions.
7. Audit Committee Involvement:

Page 66 of 69
 © Md Sajid Hossain Shimanto

➢ Audit Committee Briefings: Keep the audit committee informed about the assessed risks and the
audit strategy.
8. Continuous Learning:
➢ Post-Audit Evaluation: Conduct a post-audit evaluation to learn from the audit experience and
improve risk assessment processes for future audits.
By systematically assessing and treating audit risk, auditors enhance the reliability of their audit opinions
and contribute to the overall effectiveness of the audit process.

Question 5: What considerations do you include in performing Pre-Audit

Planning and determine audit procedures and steps for data gathering?
Ans:
Pre-Audit Planning Steps:
➢ Understand business and industry context
➢ Assess the internal control environment
➢ Conduct risk assessments
➢ Determine materiality levels
➢ Develop audit strategy and plan
➢ Create detailed audit programs
➢ Allocate necessary resources
➢ Utilize technology effectively
➢ Foster communication with management and governance
➢ Ensure compliance with legal requirements
➢ Document the entire planning process
Client Acceptance:
➢ Evaluate client acceptance criteria
➢ Consider independence and integrity
➢ Assess risks associated with the client
Initial Data Gathering:
➢ Collect preliminary information
➢ Understand the client's systems and processes
➢ Identify potential risks and areas of focus
Client Familiarization:
➢ Gain insights into client operations
➢ Understand organizational structure
➢ Identify key personnel and stakeholders
Audit Team Preparation:
➢ Ensure the audit team is well-prepared
Page 67 of 69
 © Md Sajid Hossain Shimanto

➢ Adhere to audit standards and guidelines

➢ Establish a comprehensive foundation for the audit

Question 6: Describe steps by steps how you communicate audit results and
make recommendations to key stakeholders through meetings and audit
reports to promote change when necessary?
Ans:
Drafting the Audit Report:
➢ Clear and concise summary
➢ Executive summary for key stakeholders
➢ Detailed procedures and results
➢ Standardized format and language
➢ Accuracy, completeness, and objectivity
Identify Key Stakeholders:
➢ Determine primary audience
➢ Identify impacted individuals and groups
➢ Tailor communication strategies
Plan Communication Meetings:
➢ Schedule meetings with key stakeholders
➢ Ensure management representation
➢ Interactive discussions and Q&A
Executive Summary Presentation:
➢ Begin with overview of executive summary
➢ Highlight key findings, risks, and recommendations
➢ Emphasize audit significance

Detailed Presentation:
➢ Present audit results and evidence
➢ Provide context for each finding
➢ Discuss audit methodology
➢ Address stakeholder questions
Interactive Discussions:
➢ Encourage open dialogue
➢ Clarify misunderstandings
➢ Discuss potential solutions
➢ Address stakeholder concerns

Page 68 of 69
 © Md Sajid Hossain Shimanto

Recommendation Prioritization:
➢ Prioritize recommendations by risk
➢ Articulate benefits of each recommendation
➢ Discuss challenges and mitigation
Agree on Action Plan:
➢ Collaboratively develop action plan
➢ Set realistic timelines
➢ Establish responsibilities
Follow-up Meetings:
➢ Schedule follow-up meetings
➢ Track progress and discuss challenges
➢ Provide additional support/resources
Finalize Audit Report:
➢ Incorporate feedback
➢ Reflect discussions and agreements
➢ Obtain final approval
Distribution of Final Report:
➢ Circulate report to stakeholders
➢ Ensure accessibility and transparency
➢ Store report securely
Continuous Improvement:
➢ Gather feedback on communication
➢ Identify areas for improvement
➢ Integrate lessons into audit planning

Page 69 of 69