Question

Which of the following is not considered a cause for information risk?

A.Management's geographic location is far from the source of the information needed to make effective decisions.
B.The information is collected and prepared by persons who use the information for very different purposes.
C.The information relates to business activities that are not well understood by those who collect and summarize the information for decision makers.
D.The information has been tested by internal auditors and a CPA firm.

Answer 1

The correct answer is D. The information has been tested by internal auditors and a CPA firm. A, B, and C are considered causes for information risk.

Step-by-step explanation:

The correct answer is D. The information has been tested by internal auditors and a CPA firm. This option is not considered a cause for information risk because internal auditors and a CPA firm are responsible for verifying the accuracy and reliability of financial information. Their testing helps mitigate the risk of incorrect or misleading information.

A, B, and C are all considered causes for information risk. For example, if the management's geographic location is far from the source of the information needed to make effective decisions (option A), there may be a delay in accessing and using the information, which can lead to poor decision-making.