1. What is the primary benefit of implementing IT governance within an accounting firm? - A) Increased social media presence - B) Enhanced operational efficiency - C) Reduced employee turnover - D) Expanded customer base Answer: B) Enhanced operational efficiency Rationale: IT governance provides a framework for aligning IT strategy with business strategy, ensuring that operations run smoothly and efficiently, which is crucial for an accounting firm's success. 2. Which of the following best describes 'business process reengineering'? - A) Upgrading computer hardware - B) Redesigning business processes to improve performance - C) Increasing the marketing budget - D) Hiring more staff Answer: B) Redesigning business processes to improve performance Rationale: Business process reengineering involves fundamentally rethinking and radical redesign of business processes to achieve dramatic improvements in critical measures of performance such as cost, quality, service, and speed. 3. In the context of IT risk management, what does the term 'residual risk' refer to? - A) The risk remaining after natural disasters - B) The risk before any controls are implemented - C) The risk that remains after controls are applied - D) The total risk faced by a company Answer: C) The risk that remains after controls are applied Rationale: Residual risk is the risk that remains after all efforts to identify and eliminate risk have been made. It is an important concept in risk management, as it helps firms understand the level of risk that they must be prepared to accept. 4. Which IT asset is most critical for safeguarding an accounting firm's data integrity? - A) Social media accounts