Question

What is the best description of information technology assurance?

A. Reviewing credit policies to determine whether only qualified customers are being granted favorable credit terms.
B. Review and testing of IT to assure the integrity of information.
C. Determining that year-to-year growth in sales is measurable using accounting methods.
D. Review of controls that focus on an organization's ability to comply with established labor laws and policies.

Answer 1

Information technology assurance is best described as the process of reviewing and testing IT systems to ensure the integrity of information. Sellers rely on reputation, guarantees, warrantees, and service contracts to assure product quality, whereas buyers look for these assurances to make informed decisions.

Step-by-step explanation:

Information technology assurance refers to the process of review and testing of IT systems to ensure the integrity of information. This includes not only making sure that the data is accurate and reliable but also that the systems are secure from unauthorized access or changes. Therefore, the best description of information technology assurance is 'B. Review and testing of IT to assure the integrity of information.'

To tackle the issue of imperfect information in markets, sellers can leverage techniques such as reputation, guarantees, warrantees, and service contracts to prove product quality. For instance, if you were selling emeralds or used cars, providing certification of authenticity or quality, as well as a warranty, could serve to reassure potential buyers. Conversely, when purchasing items where imperfect information is prevalent, buyers might seek assurances through these same mechanisms, as well as by relying on seller reputation.