The CoBIT Framework Can Be Used to Strengthen Internal Controls

question 1

Short Answer

The CoBIT framework can be used to strengthen internal controls against computer crime in various ways. Indicate whether each statement below is
(a) always true,
(b) sometimes true or
(c) never true.
a. As a form of internal control, each step of the systems development life cycle focuses on one of CoBIT's information criteria.
b. CoBIT can be used in conjunction with the COSO internal control framework to identify appropriate control activities.
c. CoBIT provides standards for evaluating information inputs and outputs that can help strengthen internal control.
d. The board of directors, as part of the CoBIT accountability framework, helps create a strong environment that values internal control and risk management.
e. The COSO enterprise risk management framework requires the use of CoBIT to identify risks.

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Definitions:

Salvage Value

The estimated resale value of an asset at the end of its useful life, considered in depreciation calculations and asset disposal decisions.

Net Present Value

The sum of all future cash flows, both incoming and outgoing, of an investment, discounted back to their present value to analyze its profitability.

Investment Project

A project involving the allocation of capital resources to long-term assets that produce returns over time.

Working Capital

A measure of a firm's short-term financial health and its ability to cover its short-term obligations with its short-term assets.