CISA Certified Information Systems Auditor Questions and Answers

The primary benefit of using a dry-pipe fire-suppression system rather than a wet-pipe system is that a dry-pipe system has a decreased risk of leakage, as the pipes are filled with pressurized air or nitrogen instead of water until the system is activated. A wet-pipe system has a higher risk of leakage, corrosion, and freezing. A dry-pipe system is not more effective at suppressing flames, as it uses the same water-based suppressant as a wet-pipe system. A dry-pipe system does not allow more time to abort release of the suppressant, as it has a delay of only a few seconds before the water is released. A dry-pipe systemdoes not disperse dry chemical suppressants exclusively, as it uses water as the primary suppressant. References: CISA Review Manual (Digital Version), Chapter 5, Section 5.2.3

When implementing Internet Protocol security (IPsec) architecture, the servers involved in application delivery communicate via Transport Layer Security (TLS), which is a protocol that provides encryption and authentication for data transmitted over a network. IPsec operates at the network layer and provides security for IP packets, while TLS operates at the transport layer and provides security for TCP connections. Blocking authorized users from unauthorized activities, channeling access only through the public-facing firewall, and channeling access through authentication are not functions of IPsec architecture. References: CISA Review Manual (Digital Version), Chapter 5, Section 5.4.2

Reviewing input and output control reports to verify the accuracy of the system decisions is the most important procedure for the IS auditor to perform during the post-implementation review of intelligent-agent software for granting loans to customers, because it can help identify any errors or anomalies in the system logic or data that may affect the quality and reliability of the system outcomes. Reviewingsystemand error logs, signed approvals, and systemdocumentation are also important procedures, but they are not as critical as verifying the accuracy of the system decisions. References: CISA Review Manual (Digital Version), Chapter 4, Section 4.2.21

 Management’s commitment to information security is the most critical factor for the success of an information security program, as it sets the tone and direction for the organization’s security culture and practices. Management’s commitment is demonstrated by establishing a clear security policy, providing adequate resources, assigning roles and responsibilities, enforcing compliance, and supporting continuous improvement. The other options are important elements of an information security program, but they depend on management’s commitment to be effective. References: CISA Review Manual (Digital Version) 1, page 439.

If an IS auditor suspects that independence may not have been maintained in past audits, the best course of action is to inform audit management. Audit management has the responsibility and authority to address such issues. They can review the situation, determine if there was indeed a lack of independence, and decide on the appropriate actions to take123. While informing senior management, reevaluating internal controls, and re-performing past audits might be necessary at some point, the first step should be to inform audit management.

The most important responsibility of data owners when implementing a data classification process is determining appropriate user access levels (option C). This is because:

Data owners are the persons or entities that have the authority and responsibility for the business processes and functions that collect, use, store, and dispose of data1.

Data owners are accountable for ensuring that the data is handled in compliance with the applicable laws, regulations, policies, and standards, such as the GDPR and the PIPEDA1234.

Data owners are in the best position to determine the purpose and necessity of collecting and retaining data, as well as the risks and benefits associated with it1.

Data owners should consult with other stakeholders, such as the risk manager, the database administrator (DBA), and the privacy manager, to establish and implement appropriate data classification policies and procedures2.

Data classification is the process of organizing data in groups based on their attributes and characteristics, and then assigning class labels that describe a set of attributes that hold true for the corresponding data sets345.

Data classification helps organizations to identify, manage, protect, and understand their data, as well as to comply with modern data privacy regulations345.

Data classification also helps to determine appropriate user access levels, which means defining who can access, modify, share, or delete data based on their roles, responsibilities, and needs345.

Determining appropriate user access levels is the most important responsibility of data owners when implementing a data classification process, as it ensures that only authorized and legitimate users can access sensitive or important data. This provides confidentiality, integrity, availability, and accountability of data345.

Reviewing emergency changes to data (option A), authorizing application code changes (option B), and implementing access rules over database tables (option D) are not the most important responsibilities of data owners when implementing a data classification process. These are more related to the operational aspects of data management, which are usually delegated to other roles, such as the DBA or the IT staff. The data owner should oversee and approve these activities, but not perform them directly1.

End-user computing (EUC) is a system in which users are able to create working applications besides the divided development process of design, build, test and release that is typically followed by software engineers1. Examples of EUC tools include spreadsheets, databases, low-code/no-code platforms, and generative AI applications2. EUC tools can provide flexibility, efficiency, and innovation for the users, but they also pose significant risks if not properly managed and controlled3.

The greatest risk when relying on reports generated by EUC is that the data may be inaccurate. Data accuracy refers to the extent to which the data in the reports reflect the true values of the underlying information4. Inaccurate data can lead to erroneous decisions, misleading analysis, unreliable reporting, and compliance violations. Some of the factors that can cause data inaccuracy in EUC reports are:

Lack of rigorous testing: EUC tools may not undergo the same level of testing and validation as IT-developed applications, which can result in errors, bugs, or inconsistencies in the data processing and output3.

Lack of version and change control: EUC tools may not have a clear record of the changes made to them over time, which can create confusion, duplication, or loss of data. Users may also modify or overwrite the data without proper authorization or documentation3.

Lack of documentation and reliance on end-user who developed it: EUC tools may not have sufficient documentation to explain their purpose, functionality, assumptions, limitations, and dependencies. Users may also rely on the knowledge and expertise of the original developer, who may not be available or may not have followed best practices3.

Lack of maintenance processes: EUC tools may not have regular updates, backups, or reviews to ensure their functionality and security. Users may also neglect to delete or archive obsolete or redundant data3.

Lack of security: EUC tools may not have adequate access controls, encryption, or authentication mechanisms to protect the data from unauthorized access, modification, or disclosure. Users may also store or share the data in insecure locations or devices3.

Lack of audit trail: EUC tools may not have a traceable history of the data sources, inputs, outputs, calculations, and transformations. Users may also manipulate or falsify the data without detection or accountability3.

Overreliance on manual controls: EUC tools may depend on human intervention to input, verify, or correct the data, which can introduce errors, delays, or biases. Users may also lack the skills or training to use the EUC tools effectively and efficiently3.

The other options are not as great as data inaccuracy when relying on EUC reports. Reports may not work efficiently, reports may not be timely, and historical data may not be available are all potential risks associated with EUC tools, but they are less severe and less frequent than data inaccuracy. Moreover, these risks can be mitigated by improving the performance, scheduling, and storage of the EUC tools. However, data inaccuracy can have a pervasive and lasting impact on the quality and credibility of the reports and the decisions based on them. Therefore, option A is the correct answer.

References:

What is Data Accuracy?

What Is End User Computing (EUC) Risk?

End-user computing

End-User Computing (EUC) Risks: A Comprehensive Guide

Stress testing is designed to evaluate a system’s performance under extreme conditions1. It is typically carried out in a test environment that closely mirrors the production environment, using production workloads1. This approach ensures that the test results accurately reflect how the system would perform under similar conditions in the production environment1. Using a test environment also prevents any disruptions or damage to the production environment during testing1.

References:

Stress Testing Best Practices: A Seven Steps Model

Understanding the specific agile methodology that will be followed is the first step that an IS auditor should do to ensure the effectiveness of the project audit. An IS auditor should familiarize themselves with the agile approach, principles, practices, and tools that will be used by the project team, as well as the roles and responsibilities of the project stakeholders. This will help the IS auditor to identify and assess the relevant risks and controls for the project audit. The other options are not the first steps that an IS auditor should do, but rather possible subsequent actions that may depend on the specific agile methodology. References:

CISA Review Manual (Digital Version), Chapter 4, Section 4.3.21

CISA Review Questions, Answers & Explanations Database, Question ID 211

The primary reason an IS auditor should discuss observations with management before delivering a final report is A. Validate the audit observations. This is because discussing the observations with management can help the auditor to ensure that the findings are accurate, complete, and supported by sufficient evidence1. It can also help the auditor to obtain management’s perspective and feedback on the issues and risks identified, and to avoid any misunderstandings or surprises when the final report is issued2.

Substantive testing © provides the best evidence of the validity and integrity of logs in an organization’s security information and event management (SIEM) system, because it is a type of audit testing that directly examines the accuracy, completeness, and reliability of the data and transactions recorded in the logs. Substantive testing can involve various methods, such as re-performance, inspection, observation, inquiry, or computer-assisted audit techniques (CAATs), to verify the existence, occurrence, valuation, ownership, presentation, and disclosure of the log data1. Substantive testing canalso detect any errors, omissions, alterations, or manipulations of the log data that may indicate fraud or misstatement2.

Compliance testing (A) is not the best evidence of the validity and integrity of logs in an organization’s SIEM system, because it is a type of audit testing that evaluates the design and effectiveness of the internal controls that are implemented to ensure compliance with laws, regulations, policies, and procedures. Compliance testing can involve various methods, such as walkthroughs, questionnaires, checklists, or flowcharts, to assess the adequacy, consistency, and operation of the internal controls1. Compliance testing can provide assurance that the log data are generated and processed in accordance with the established rules and standards, but it does not directly verify the accuracy and reliability of the log data itself2.

Stop-or-go sampling (B) is not a type of audit testing, but a type of sampling technique that auditors use to select a sample from a population for testing. Stop-or-go sampling is a sequential sampling technique that allows auditors to stop testing before reaching the predetermined sample size if the results are satisfactory or conclusive. Stop-or-go sampling can reduce the audit cost and time by avoiding unnecessary testing, but it can also increase the sampling risk and uncertainty by relying on a smaller sample3. Stop-or-go sampling does not provide any evidence of the validity and integrity of logs in an organization’s SIEM system by itself; it depends on the type and quality of the audit tests performed on the selected sample.

Variable sampling (D) is not a type of audit testing, but a type of sampling technique that auditors use to estimate a numerical characteristic of a population for testing. Variable sampling is a statistical sampling technique that allows auditors to measure the amount or rate of error or deviation in a population by using quantitative methods. Variable sampling can provide precise and objective results by using mathematical formulas and confidence intervals4. Variable sampling does not provide any evidence of the validity and integrity of logs in an organization’s SIEM system by itself; it depends on the type and quality of the audit tests performed on the selected sample.

References:

Audit Testing Procedures - 5 Types and Their Use Cases

5 Types of Testing Methods Used During Audit Procedures | I.S. Partners

Stop-or-Go Sampling Definition

Variable Sampling Definition

 The project manager should be accountable for managing the risks to project benefits. Project benefits are the expected outcomes or value that a project delivers to its stakeholders, such as improved efficiency, quality, customer satisfaction, or revenue. Project risks are uncertain events or conditions that may affect the project objectives, scope, budget, schedule, or quality. The project manager is responsible for identifying, analyzing, prioritizing, responding to, and monitoring project risks throughout the project life cycle. The other options are not accountable for managing project risks, as they have different roles and responsibilities. The enterprise risk manager is responsible foroverseeing the organization’s overall risk management framework and strategy, but not for managing specific project risks. The project sponsor is responsible for initiating, approving, and supporting the project, but not for managing project risks. The information security officer is responsible for ensuring that the project complies with the organization’s information security policies and standards, but not for managing project risks. References: CISA Review Manual (Digital Version), Chapter 3, Section 3.3

 Configuring each authentication server as belonging to a cluster of authentication servers is the best way to minimize performance degradation of servers used to authenticate users of an e-commerce website. A cluster is a group of servers that work together to provide high availability, load balancing, and fault tolerance. If one server fails or becomes overloaded, another server in the cluster can take over its workload without disrupting the service. A single server as a primary authentication server and a second server as a secondary authentication server is not as effective as a cluster, because the secondary server is only used when the primary server fails, which means it is idle most of the time and does not improve performance. Configuring each authentication server and ensuring that each disk of its RAID is attached to the primary controller does not address the issue of performance degradation, but rather the issue of data redundancy and reliability. RAID (redundant array of independent disks) is a technology that combines multiple disks into a logical unit that can tolerate disk failures and improve data access speed. Configuring each authentication server and ensuring that the disks of each server form part of a duplex does not address the issue of performance degradation, but rather the issue of data backup and recovery. A duplex is a pair of disks that store identical copies of data, so that if one disk fails, the other disk can be used to restore the data. References: ISACA CISA Review Manual 27th Edition, page 310

 The primary reason for an IS auditor to conduct post-implementation reviews is to determine whether project objectives in the business case have been achieved. A post-implementation review is an audit activity that evaluates whether a project has delivered its expected outcomes or benefits in accordance with its objectives, scope, budget, and schedule. A business case is a document that defines and justifies the need, value, and feasibility of a project. A post-implementation review can help assess whether project objectives in the business case have been achieved by comparing actual results with planned expectations and identifying any gaps or deviations. The other options are not primary reasons for conducting post-implementation reviews, as they do not measure whether project objectives in the business case have been achieved. Ensuring key stakeholder sign-off has been obtained is a project closure activity that confirms that all project deliverables have been completed and accepted by key stakeholders, but it does not evaluate whether project objectives in the business case have been achieved. Aligning project objectives with business needs is a project initiation activity that ensures that the project is aligned with the organization’s strategy, goals, and priorities, but it does not evaluate whether project objectives in the business case have been achieved. Documenting lessons learned to improve future project delivery is a project learning activity that captures and shares the knowledge, experience, and feedback gained from the project, but it does not evaluate whether project objectives inthe business case have been achieved. References: CISA Review Manual (Digital Version), Chapter 3, Section 3.3

 The first step when developing a data loss prevention (DLP) solution for a large organization is to conduct a data inventory and classification exercise. This step is essential to identify the types, locations, owners, and sensitivity levels of the data that need to be protected by the DLP solution. A data inventory and classification exercise helps to define the scope, objectives, and requirements of the DLP solution, as well as to prioritize the data protection efforts based on the business value and risk of the data. A data inventory and classification exercise also enables the organization to comply with relevant laws and regulations regarding data privacy and security.

The other options are not the first step when developing a DLP solution, but rather subsequent steps that depend on the outcome of the data inventory and classification exercise. Identifying approved data workflows across the enterprise is a step that helps to design and implement the DLP policies and controls that match the business processes and data flows. Conducting a threat analysis against sensitive data usage is a step that helps to assess and mitigate the risks associated with data leakage, theft, or misuse. Creating the DLP policies and templates is a step that helps to enforce the data protection rules and standards across the organization.

References:

ISACA CISA Review Manual 27th Edition (2019), page 247

Data Loss Prevention—Next Steps - ISACA1

What is data loss prevention (DLP)? | Microsoft Security

The first step that the organization should take to ensure that only the corporate network is used for downloading business data is to include a statement in its security policy about Internet use. A security policy is a document that defines the rules, expectations, and overall approach that an organization uses to maintain the confidentiality, integrity, and availability of its data1. A security policy should clearly state the acceptable and unacceptable use of Internet resources, such as personalaccounts with ISPs, and the consequences of violating the policy. A security policy also helps to guide the implementation of technical controls, such as proxy servers, firewalls, or monitoring tools, that can enforce the policy and prevent or detect unauthorized Internet access.

The other options are not the first step that the organization should take, but rather subsequent or complementary steps that depend on the security policy. Using a proxy server to filter out Internet sites that should not be accessed is a technical control that can help implement the security policy, but it does not address the root cause of why users are using personal accounts with ISPs. Keeping a manual log of Internet access is a monitoring technique that can help audit the compliance with the security policy, but it does not prevent or deter users from using personal accounts with ISPs. Monitoring remote access activities is another monitoring technique that can help detect unauthorized Internet access, but it does not specify what constitutes unauthorized access or how to respond to it.

References:

ISACA CISA Review Manual 27th Edition (2019), page 247

What is a Security Policy? Definition, Elements, and Examples - Varonis1

 The most important thing for an IS auditor to examine when reviewing an organization’s privacy policy is its legitimate purpose for collecting personal data. A legitimate purpose is a clear and specific reason for collecting personal data that is necessary for the organization’s business operations or legal obligations, and that respects the rights and interests of the data subjects. A legitimate purpose is the basis for establishing a lawful and fair processing of personal data, and it should be communicated to the data subjects in the privacy policy. The other options are not as important as the legitimate purpose in reviewing the privacy policy. Explicit permission from regulators to collect personal data is not always required, as there may be other lawful bases for data collection, such as consent, contract, or public interest. Sharing of personal information with third-party service providers is not prohibited, as long as there are adequate safeguards and agreements in place to protect the data. The encryption mechanism selected by the organization for protecting personal data is a technical control that can enhance data security, but it does not determine the legality or fairness of data collection. References: CISA Review Manual (Digital Version), Chapter 5, Section 5.3.2

 Decreased time for incident resolution is the best indicator that an incident management process is effective. Incident management is a process that aims to restore normal service operation as quickly as possible after an incident, which is an unplanned interruption or reduction in quality of an IT service. Decreased time for incident resolution means that the incident management process is able to identify, analyze, respond to, and resolve incidents efficiently and effectively. The other indicatorsdo not necessarily reflect the effectiveness of the incident management process, as they may depend on other factors such as the nature, frequency, and severity of incidents. References: CISA Review Manual, 27th Edition, page 372

The best way to prevent data leakage from a lost mobile device is data encryption on the mobile device. Data encryption is a technique that transforms data into an unreadable format using a secret key or algorithm. Data encryption protects data from unauthorized access or disclosure in case of loss or theft of a mobile device. Complex password policy for mobile devices, triggering of remote data wipe capabilities, and awareness training for mobile device users are useful measures to enhance data security on mobile devices, but they do not prevent data leakage as effectively as data encryption. A complex password policy can be bypassed by brute force attacks or password cracking tools. Remote data wipe capabilities depend on network connectivity and device power availability. Awareness training for mobile device users can reduce human errors or negligence, but it cannot guarantee compliance or behavior change. References: CISA Review Manual (Digital Version): Chapter 5 - Information Systems Operations and Business Resilience

Obtaining management’s consent to the testing scope in writing is the most important step prior to finalizing the scope of testing, as it ensures that the penetration testers have the authorization and approval to perform the testing activities. It also protects them from any legal liabilities or accusations of unauthorized access or damage. The other options are not as important as obtaining management’s consent, and they may vary depending on the specific situation and agreement. For example, some systems may not be excluded from the testing scope, and some tests may not be restricted to the test environment. References: CISA Review Manual (Digital Version) 1, page 381-382.

The most effective control for protecting the confidentiality and integrity of data stored unencrypted on virtual machines is to monitor access to stored images and snapshots of virtual machines. Images and snapshots are copies of virtual machines that can be used for backup, restoration, or cloning purposes. If data stored on virtual machines are unencrypted, they may be exposed or compromised if unauthorized or malicious users access or copy the images or snapshots. Therefore, monitoring access to stored images and snapshots can help detect and prevent any unauthorized or suspicious activities, and provide audit trails for accountability and investigation.

Restricting access to images and snapshots of virtual machines, limiting creation of virtual machine images and snapshots, and reviewing logical access controls on virtual machines regularly are not the most effective controls for protecting the confidentiality and integrity of data stored unencrypted on virtual machines. These controls may help reduce the risk or impact of data exposure or compromise, but they do not provide sufficient visibility or assurance of data protection. Restricting access to images and snapshots may not prevent authorized users from abusing their privileges or credentials. Limiting creation of virtual machine images and snapshots may not address the existing copies that may contain sensitive data. Reviewing logical access controls on virtual machines regularly may not reflect the actual access activities on images and snapshots.

A post-implementation review (PIR) is a process to evaluate whetherthe objectives of the project were met, determine how effectively this wasachieved, learn lessons for the future, and ensure that the organisation gets the most benefit from the implementation of projects1. A PIR is an important tool for assessing the success and value of a project, as well as identifying the areas for improvement and best practices for future projects.

One of the key elements of a PIR is to measure the benefits of the project against the expected outcomes and benefits that were defined at the beginning of the project. Measurable benefits are the quantifiable and verifiable results or outcomes that the project delivers to theorganisation or its stakeholders, such as increased revenue, reduced costs, improved quality, enhanced customer satisfaction, or compliance with regulations2. Measurable benefits should be aligned with the organisation’s strategy, vision, and goals, and should be SMART (specific, measurable, achievable, relevant, and time-bound).

The finding that measurable benefits were not defined is of greatest significance among the four findings, because it implies that:

The project did not have a clear and agreed-upon purpose, scope, objectives, and deliverables

The project did not have a valid and realistic business case or justification for its initiation and implementation

The project did not have a robust and effective monitoring and evaluation mechanism to track its progress, performance, and impact

The project did not have a reliable and transparent way to demonstrate its value proposition and return on investment to the organisation or its stakeholders

The project did not have a meaningful and actionable way to learn from its achievements and challenges, and to improve its processes and practices

Therefore, an IS auditor should recommend that measurable benefits are defined for any project before its implementation, and that they are reviewed and reported regularly during and after the project’s completion.

The other possible findings are:

A lessons-learned session was never conducted: This is a significant finding, but not as significant as the lack of measurable benefits. A lessons-learned session is a process of capturing and documenting the knowledge, experience, and feedback gained from a project,both positive and negative. A lessons-learned session helps to identify the strengths and weaknesses of the project management process, as well as the best practices and lessons for future projects. A lessons-learned session should be conducted at the end of each project phase or milestone, as well as at the end of the project. However, even without a formal lessons-learned session, some learning may still occur informally or implicitly among the project team members or stakeholders.

The projects 10% budget overrun was not reported to senior management: This is a significant finding, but not as significant as the lack of measurable benefits. A budget overrun is a situation where the actual cost of a project exceeds its planned or estimated cost. A budget overrun may indicate poor planning, estimation, or control of the project resources, or unexpected changes or risks that occurred during the project implementation. A budget overrun should be reported to senior management as soon as possible, along with the reasons for it and the corrective actions taken or proposed. However, a budget overrun may not necessarily affect the quality or value of the project deliverables or outcomes if they are still within acceptable standards or expectations.

Monthly dashboards did not always contain deliverables: This is a significant finding, but not as significant as the lack of measurable benefits. A dashboard is a visual tool that displays key performance indicators (KPIs) or metrics related to a project’s progress, status, or results. A dashboard helps to monitor and communicate the performance of a project to various stakeholders in a concise and clear manner. A dashboard should include deliverables as one of its components, along with other elements such as schedule, budget, quality, risks, issues, or benefits. However, even without deliverables in monthly dashboards, some information about them may still be available from other sources such as reports or documents.

References: 1: What is Post-Implementation Review in Project Management? 2: The role & importance of the Post Implementation Review

The IS auditor’s next step after determining that many terminated users’ accounts were not disabled is to perform a review of terminated users’ account activity. This means that the IS auditor should check whether any of the terminated users’ accounts were accessed or used after their termination date, which could indicate unauthorized or fraudulent activity. The IS auditor should also assess the impact and risk of such activity on the confidentiality, integrity, and availability of IT resources and data. The other options are not as appropriate as performing a review of terminated users’ account activity, as they do not provide sufficient evidence or assurance of the extent and effect of the problem. References: CISA Review Manual, 27th Edition, page 240

Outsourcing the audit to independent and qualified resources is the best course of action for the IS audit manager who was temporarily tasked with supervising a project manager assigned to the organization’s payroll application upgrade. This is because the IS audit manager has a potential conflict of interest and a threat to objectivity and independence, which are essential principles and standards for IS auditors.

According to the ISACA Code of Professional Ethics, IS auditors should maintain objectivity and independence in their professional judgment and avoid any situations that may impair or be presumed to impair their objectivity or independence1. Objectivity is the mental attitude of an IS auditor that allows them to perform their work honestly, impartially, and with integrity, while independence is the freedom from conditions that threaten the ability of an IS auditor to carry out their work in an unbiased manner2.

The IS audit manager who was involved in supervising the payroll application upgrade project may have a self-review threat, which is the risk that an IS auditor will not appropriately evaluate the results of a previous judgment made or service performed by them or their subordinates3. The IS audit manager may also have a familiarity threat, which is the risk that an IS auditor will be influenced by a close relationship with someone involved in the project or by their own personal interests4. These threats may compromise the IS audit manager’s objectivity and independence and affect the quality and credibility of the audit.

Therefore, the IS audit manager should disclose their involvement in the project to their senior management and the audit committee and decline to perform or manage the audit. The IS audit manager should also recommend outsourcing the audit to independent and qualified resources whohave no connection or interest in the project and who have the necessary skills and experience to conduct a reliable and effective audit.

The other options are not the best course of action for the IS audit manager.

Transferring the assignment to a different audit manager despite lack of IT project management experience is not the best course of action because it may result in a low-quality audit that does not meet the expectations and standards of the stakeholders. IT project management experience is essential for auditing an IT project, as it requires knowledge of project management methodologies, tools, techniques, risks, and best practices. An audit manager who lacks IT project management experience may not be able to plan, execute, report, and follow up on the audit effectively and efficiently.

Managing the audit since there is no one else with the appropriate experience is not the best course of action because it violates the ethical principles and standards of objectivity and independence for IS auditors. Managing the audit would create a conflict of interest and a threat to objectivity and independence for the IS audit manager, as they would be reviewing their own work or that of their subordinate. Managing the audit would also undermine the credibility and reliability of the audit results and recommendations, as they may be biased or influenced by personal or professional relationships or interests.

Having a senior IS auditor manage the project with the IS audit manager performing final review is not the best course of action because it still involves the IS audit manager in the audit process, which poses a conflict of interest and a threat to objectivity and independence. Performing final review would require the IS audit manager to evaluate and approve the work done by the senior IS auditor, which may be affected by their previous involvement in or knowledge of the project. Performing final review would also expose theIS audit manager to undue pressure or influence from management or other stakeholders who may have expectations or preferences regarding the audit outcome.

 To confirm integrity for a hashed message, the receiver should use the same hashing algorithm as the sender’s to create a binary image of the file. A hashing algorithm is a mathematical function that transforms an input data into a fixed-length output value, called a hash or a digest. A hashing algorithm has two main properties: it is one-way, meaning that it is easy to compute the hash from the input, but hard to recover the input from the hash; and it is collision-resistant, meaning that it is very unlikely to find two different inputs that produce the same hash. These properties make hashing algorithms useful for verifying the integrity of data, as any change in the input data will result in a different hash value. Therefore, to confirm integrity for a hashed message, the receiver should use the same hashing algorithm as the sender’s to create a binary image of the file, which is a representation of the file in bits (0s and 1s). The receiver should then compare this binary image with the hash value sent by the sender. If they match, then the message has not been altered in transit. If they do not match, then the message has been corrupted or tampered with.

References:

Ensuring Data Integrity with Hash Codes

Message Integrity

The best description of an audit risk is that the financial report may contain undetected material errors. Audit risk is the risk that the auditor expresses an inappropriate opinion on the financial report when it contains material misstatements or errors. Audit risk consists of three components: inherentrisk, control risk, and detection risk. Inherent risk is the susceptibility of an assertion or a control to a material misstatement or error due to factors such as complexity, volatility, fraud, or human error. Control risk is the risk that a material misstatement or error will not be prevented or detected by the internal controls. Detection risk is the risk that the auditor’s procedures will not detect a material misstatement or error that exists in an assertion or a control. References:

CISA Review Manual (Digital Version)

CISA Questions, Answers & Explanations Database

The most important thing to determine during the planning phase of a cloud-based messaging and collaboration platform acquisition is the types of data that can be uploaded to the platform. This is because different types of data may have different security, privacy, and compliance requirements, depending on the nature, sensitivity, and value of the data. For example, personal data, financial data, health data, or intellectual property data may be subject to various laws and regulations thatgovern how they can be collected, stored, processed, and shared in the cloud. Therefore, it is essential to identify and classify the types of data that will be uploadedto the platform, and ensure that the platform meets the organization’s policies and standards for data protection1.

The other options are not as important as the types of data that can be uploaded to the platform during the planning phase of a cloud-based messaging and collaboration platform acquisition. Option A, role-based access control policies, is a mechanism that defines who can access what data and resources on the platform based on their roles and responsibilities. Role-based access control policies are important for ensuring data security and accountability, but they can be designed and implemented after the platform is acquired2. Option C, processes for on-boarding and off-boarding users to the platform, are procedures that enable or disable user accounts and access rights on the platform. Processes for on-boarding and off-boarding users are important for managing user identities and lifecycles, but they can be developed and executed after the platform is acquired3. Option D, processes for reviewing administrator activity, are methods that monitor and audit the actions and events performed by administrators on the platform. Processes for reviewing administrator activity are important for detecting and preventing unauthorized or malicious activities, but they can be established and performed after the platform is acquired4.

References:

Cloud Messaging and Collaboration Services - Maryland.gov DoIT4

MessageBird acquires real-time notifications and in-app messaging platform Pusher for$35M | TechCrunch2

Symphony to lead financial market communicationswith the acquisition of Cloud9 Technologies3

Cloud messaging and collaboration | Sumo Logic

A post-incident review (PIR) is a process to review the incident information from occurrence to closure and to identify potential findings and recommendations for improvement1. The most important reason for an IS auditor to examine the results of a PIR is to evaluate the effectiveness of continuous improvement efforts and to ensure that the lessons learned from the incident are implemented and followed up2. A PIR can help an organization to eliminate or reduce the risk of the incident to re-occur, improve the initial incident detection time, identify improvements needed to diagnose and repair the incident, and update the incident management best practices1. Therefore, a PIR is a valuable source of information for an IS auditor to assess the maturity and performance of the organization’s incident management process.

The primary objective of implementing privacy-related controls within an organization is to comply with legal and regulatory requirements that protect the rights and interests of individuals whose personal data are collected, processed, stored, shared or disposed by the organization. Privacy-related controls are based on principles such as lawfulness, fairness, transparency, purpose limitation, data minimization, accuracy, storage limitation, integrity, confidentiality and accountability. These principles aim to ensure that personal data are processed in a manner that respects the privacy of individuals and complies with the applicable laws and regulations in different jurisdictions. Preventing confidential data loss, identifying data at rest and data in transit for encryption, and providing options to individuals regarding use of their data are examples of specific privacy-related controls that support the primary objective of compliance. References: Privacy Regulatory Lookup Tool, CDPSE Official Review Manual, 2nd Edition

The organization’s software inventory is not complete. This finding would be of greatest concern to an IS auditor assessing an organization’s patch management process because:

A software inventory is a list of all the software assets that an organization owns, uses, or manages. A software inventory is essential for effective patch management, as it helps identify the software that needs to be updated, the patches that are available, and the dependencies and compatibility issues that may arise. Without a complete software inventory, an organization may miss some critical patches, expose itself to security risks, and waste resources on unnecessary or redundant patches.

Applications frequently need to be rebooted for patches to take effect. This finding would be of moderate concern to an IS auditor assessing an organization’s patch management process because:

Rebooting applications for patches to take effect is a common and expected practice in some cases, especially for operating system or kernel patches. However, frequent reboots may indicate that the organization is not applying patches in a timely or efficient manner, or that the patches are not well-designed or tested. Frequent reboots may also cause disruption to the business operations and user experience, and increase the risk of data loss or corruption.

Software vendors are bundling patches. This finding would be of low concern to an IS auditor assessing an organization’s patch management process because:

Bundling patches is a practice where software vendors combine multiple patches into a single package or update. Bundling patches can have some advantages, such as reducing the number of downloads and installations, simplifying the patch management process, and ensuring consistency and compatibility among patches. However, bundling patches can also have some disadvantages, such as increasing the size and complexity of the updates, delaying the delivery of critical patches, and introducing new bugs or vulnerabilities.

Testing patches takes significant time. This finding would be of low concern to an IS auditor assessing an organization’s patch management process because:

Testing patches is a vital step in the patch management process, as it helps ensure that the patches are functional, secure, and compatible with the existing software and hardware environment. Testing patches can take significant time, depending on the scope, complexity, and frequency of the patches. However, testing patches is a necessary investment to avoid potential problems or failures that could result from applying untested or faulty patches.

References:

Best practices for patch management

Server Patch Management: Best Practices and Tools

11 Key Steps of the Patch Management Process

The most important action before the audit work begins is to establish control objectives. Control objectives are the specific goals or outcomes that the audit intends to achieve or verify in relation to the information protection in the application1. Control objectives provide the basis for designing and performing the audit procedures, evaluating the audit evidence, and reporting the audit findings and recommendations2. Control objectives also help to align the audit scope and criteria with the business needs and expectations, and to ensure that the audit is relevant, reliable, and efficient3.

Some examples of control objectives for an information protection audit are:

To ensure that the information stored in the application is classified according to its sensitivity, value, and regulatory requirements

To ensure that the information stored in the application is encrypted, masked, or anonymized as appropriate

To ensure that the information stored in the application is accessible only by authorized users and processes

To ensure that the information stored in the application is backed up, restored, and retained according to the business continuity and retention policies

To ensure that the information stored in the application is monitored, logged, and audited for any unauthorized or anomalous activities

Therefore, option B is the correct answer.

Option A is not correct because reviewing remediation reports is not the most important action before the audit work begins. Remediation reports are documents that describe how previous audit findings or issues have been resolved or addressed by the auditee4. While reviewing remediation reports may be useful for understanding the current state of information protection in the application, it is not a prerequisite for defining the control objectives of the audit.

Option C is not correct because assessing the threat landscape is not the most important action before the audit work begins. The threat landscape is the set of potential sources, methods, and impacts of cyberattacks or data breaches that may affect the information stored in the application5. While assessing the threat landscape may be helpful for identifying and prioritizing the risks and vulnerabilities of information protection in the application, it is not a prerequisite for defining the control objectives of the audit.

Option D is not correct because performing penetration testing is not the most important action before the audit work begins. Penetration testing is a technique that simulates real-world cyberattacks or data breaches to test the security and resilience of information systems or applications. 

Quality control reviews are the best way to demonstrate to senior management and the board that an audit function is compliant with standards and the code of ethics. Thesereviews assess the efficiency and effectiveness of the audit function, ensure compliance with audit standards and ethics, and identify areasfor improvement12. While audit staff interviews, control self-assessments (CSAs), and corrective action plans can provide valuable insights, they do not offer the same level of assurance as a comprehensive quality control review12.

References: The Institute of Internal Auditors1, AuditBoard2

 The best way to prevent a chip-level security vulnerability from being exploited is to install vendor patches. A chip-level security vulnerability is a flaw in the design or implementation of a processor thatallows an attacker to bypass the normal security mechanisms and access privileged information or execute malicious code. A vendor patch is a software update provided by the manufacturer of the processor that fixes or mitigates the vulnerability. Installing vendor patches can help to protect the system from known exploits and reduce the risk of data leakage or compromise.

Security awareness training, reviewing hardware vendor contracts, and reviewing security log incidents are not as effective as installing vendor patches for preventing a chip-level security vulnerability from being exploited. Security awareness training is an educational program that teaches users about the importance of security and how to avoid common threats. Reviewing hardware vendor contracts is a legal process that evaluates the terms and conditions of the agreement between the organization and the processor supplier. Reviewing security log incidents is an analytical process that examines the records of security events and activities on the system. These methods may be useful for other security purposes, but they do not directly address the root cause of the chip-level vulnerability or prevent its exploitation. References: Protecting your device against chip-related security vulnerabilities, New ‘Downfall’ Flaw Exposes Valuable Data in Generations of Intel Chips

The answer B is correct because Software as a Service (SaaS) provider is the most efficient solution for a multi-location healthcare organization that wants to be able to access patient data wherever patients present themselves for care. SaaS is a cloud computing model that allows users to access software applications over the internet, without having to install, maintain, or update them on their own devices or servers. SaaS providers host and manage the software applications and the underlying infrastructure, and handle any issues such as security, availability, and performance.

SaaS can offer several benefits for a multi-location healthcare organization, such as:

Accessibility: SaaS applications can be accessed from any device and location that has an internet connection, which enables the healthcare organization to access patient data across different facilities and regions, and provide seamless and coordinated care to the patients.

Scalability: SaaS applications can scale up or down according to the demand and usage of the healthcare organization, which allows the organization to accommodate fluctuations in patient volume, data volume, or service requirements.

Cost-effectiveness: SaaS applications are usually offered on a subscription or pay-per-use basis, which reduces the upfront and ongoing costs of purchasing, installing, and maintaining software licenses, hardware, and IT staff.

Security: SaaS providers are responsible for ensuring the security and privacy of the software applications and the data they store, which can help the healthcare organization comply with the relevant regulations and standards, such as HIPAA (Health Insurance Portability and Accountability Act) or GDPR (General Data Protection Regulation).

Some examples of SaaS providers that offer solutions for healthcare organizations are:

Epic: Epic is a leading provider of electronic health record (EHR) systems that enable healthcare organizations to store, manage, and share patient data across different settingsand specialties. Epic also offers cloud-based solutions that allow healthcare organizations to access Epic’s software applications over the internet, without having to host them on their own servers.

Salesforce Health Cloud: Salesforce Health Cloud is a cloud-based platform that helps healthcare organizations connect with patients, providers, payers, and partners. Salesforce Health Cloud enables healthcare organizations to manage patient relationships, coordinate care teams, engage patients through personalized journeys, and leverage data and analytics to improve outcomes and efficiency.

DocuSign: DocuSign is a cloud-based platform that enables users to sign, send, and manage documents electronically. DocuSign can help healthcare organizations streamline workflows, reduce errors, and enhance compliance by automating the process of obtaining signatures for consent forms, contracts, prescriptions, referrals, and other documents.

The other options are not as efficient as option B. Infrastructure as a Service (IaaS) provider (option A) is a cloud computing model that provides users with access to computing resources such as servers, storage, network, and operating systems over the internet. IaaS can offer some benefits such as flexibility, scalability, and cost-effectiveness for a multi-location healthcare organization, but it also requires more technical expertise and management from the organization than SaaS. The organization would still need to install, configure, update, and secure the software applications that run on the IaaS infrastructure. Network segmentation (option C) is a technique that divides a network into smaller subnetworks based on criteria such as function, location, or security level. Network segmentation can improve the performance, security, and manageability of a network by reducing congestion, isolating threats, and enforcing policies. However, network segmentation alone does not enable a multi-location healthcare organization to access patient data wherever patients present themselves for care. The organization would still need a software solution that can store, manage, and share patient data across different segments of the network. Dynamic localization (option D) is a process that adapts the content and functionality of a software application to suit the preferences and needs of users in different locations or regions. Dynamic localization can enhance the user experience and satisfaction by providing relevant information in local languages, currencies, formats, and regulations. However, dynamic localization does not address the core issue of accessing patient data wherever patients present themselves for care. The organization would still need a software solution that can store, manage, and share patient data across different locations or regions.

References:

Epic

Salesforce Health Cloud

DocuSign

 An IT risk assessment is the process of identifying and assessing the threats facing an organization’s information systems, networks, and data. An IT risk assessment helps an organization to understand its current risk profile, prioritize its risks, and implement appropriate controls to mitigate them. An IT risk assessment also helps an organization to comply with relevant laws and standards, such as ISO 27001 or CMMC.

One of the key steps in an IT risk assessment is the identification of vulnerabilities. Vulnerabilities are the weaknesses or gaps in an organization’s information security that could be exploited by internal or external threats. Vulnerabilities can exist in various aspects of an organization’s information security, such as:

Hardware: The physical devices and components that store or process information

Software: The applications and programs that run on hardware devices

Network: The communication channels and protocols that connect hardware devices

Data: The information that is stored or transmitted by hardware devices or software applications

People: The users or personnel who access or manage information systems or data

Processes: The procedures or workflows that govern how information systems or data are used or maintained

By identifying vulnerabilities in each of these aspects, an organization can assess its exposure to potential threats, such as hackers, malware, natural disasters, human errors, or sabotage. By identifying vulnerabilities, an organization can also determine its risk level for each threat scenario, based on the likelihood and impact of a successful attack. By identifying vulnerabilities, an organization can also identify the existing or required controls to prevent or reduce the impact of an attack.

Therefore, an IT risk assessment should include the identification of vulnerabilities as a crucial component.

References:

4: What Is an IT Risk Assessment? (Plus Benefits and Components) | Indeed.com

5: How to Perform a Successful IT Risk Assessment - Hyperproof

6: IT Risk Resources | ISACA

The greatest concern for an IS auditor evaluating the access controls for a shared customer relationship management (CRM) system is that audit logging is not enabled. Audit logging is a process that records and tracks the activities and events that occur on a system, such as who accessed what data, when, how, and why. Audit logging can help monitor and verify the compliance and effectiveness of the access controls, as well as detect and investigate any unauthorized or suspicious access or actions. Audit logging can also provide evidence and accountability for the security and integrity of the system and the data.

Without audit logging, the IS auditor would not be able to audit the access controls for the shared CRM system, as there would be no reliable or traceable records of the access history or patterns. Without audit logging, the organization would also not be able to identify or respond to any potential breaches or incidents that may compromise the confidentiality, availability, or accuracy of the CRM data. Without audit logging, the organization would also not be able to demonstrate or prove itscompliance with any applicable policies, regulations, or standards that may require audit logging for CRM systems.

Single sign-on is not enabled is not a great concern for an IS auditor evaluating the access controls for a shared CRM system, but rather a potential improvement or enhancement. Single sign-on is a process that allows users to access multiple systems or applications with one set of credentials, such as a username and password. Single sign-on can help simplify and streamline the user experience, as well as reduce the risk of password fatigue or compromise. However, single sign-on is not a mandatory or essential requirement for access controls, and it may also introduce some challenges or risks, such as dependency on a single point of failure or vulnerability.

Security baseline is not consistently applied is not a great concern for an IS auditor evaluating the access controls for a shared CRM system, but rather a minor issue or gap. Security baseline is a set of minimum security standards or requirements that apply to a system or application, such as password policies, encryption protocols, or firewall rules. Security baseline can help ensure that the system or application meets a certain level of security and compliance. However, security baseline is not a sufficient or comprehensive measure for access controls, and it may also need to be customized or adjusted according to the specific needs and risks of each system or application.

Complex passwords are not required is not a great concern for an IS auditor evaluating the access controls for a shared CRM system, but rather a common practice or recommendation. Complex passwords are passwords that are composed of a combination of different types of characters, such as letters, numbers, symbols, and cases. Complex passwords can help prevent or deter brute-force attacks or guessing attempts by making the passwords harder to crack or predict. However, complex passwordsare not a guarantee or guarantee of security, and they may also have some drawbacks or limitations, such as user inconvenience, memorability issues, or reuse across multiple systems or applications.

References:

Customer Relationship Management Risks and Controls - CRM Simplified 1

Customer relationship management: A guide - Zendesk 2

How to Protect Your Customer Relationship Management (CRM) Data from Hackers 3

What is CRM? | A Definition by Salesforce 4

Substantive testing is the most important type of testing during software license audits, as it provides evidence of the accuracy and completeness of the software inventory and licensing records. Substantive testing involves examiningtransactions, balances, and other data to verify their validity, existence, accuracy, and valuation. Compliance testing, on the other hand, is more focused on assessing the adequacy and effectiveness of internal controls over software licensing, such as policies, procedures,and monitoring mechanisms. Compliance testing alone cannot provide sufficient assurance that the software license audit objectives are met, as itdoes notverify the actual software usage and compliance status. Judgmental sampling and stop-or-go sampling are methods of selecting samples for testing, not types of testing themselves. *References: According to the ISACA IT Audit and Assurance Standards, Guidelines and Tools and Techniques for IS Audit and Assurance Professionals, section1206 Testing, “The IS audit and assurance professional should perform sufficient testing to obtain sufficient appropriate evidence to support conclusions reached.” 1 The section also defines substantive testing as “testing performed to obtain audit evidence to detect material misstatements in transactions orbalances” and compliance testing as “testing performed to obtain audit evidence on theoperating effectiveness of controls.” 1 According to the ISACA IT Audit and Assurance Guideline G15 Software License Management, “The objective of a software license auditis to provide management with an independent assessment relating to compliance with software license agreements.” 2 The guideline also states that “substantive tests should be performed on a sample basis to verify that all software installed on devices within scope has been appropriately licensed.” 2

The best indication to an IS auditor that management’s post-implementation review was effective is that lessons learned were documented and applied, as this shows that the management has identified and addressed the issues and gaps that arose during the implementation, and has improved the processes and practices for future projects. Business and IT stakeholders participating in the post-implementation review is a good practice, but it does not guarantee that the review was effective or that the outcomes were implemented. Post-implementation review being a formal phase in the system development life cycle (SDLC) is a requirement, but it does not ensure that the review was effective or that the outcomes were implemented. Internal audit follow-up being completed without any findings is a desirable result, but it does not indicate that the management’s post-implementation review was effectiveorthat the outcomes were implemented. References: CISA Review Manual (Digital Version), Chapter 3: Information Systems Acquisition, Development andImplementation, Section 3.2: Project Management Practices1

The primary purpose of requiring source code escrow in a contractual agreement is to ensure the source code is available. Source code escrow is a service that involves depositing the source code of a software or system with a third-party agent or escrow provider, who can release it to a designated beneficiary under specific conditions, such as bankruptcy, termination, or breach of contract by the software vendor or developer. Source code escrow can help to protect the interests and rights of the software user or licensee, who may need access to the source code for maintenance, modification, enhancement, or troubleshooting purposes. The IS auditor should verify that the contractual agreement specifies the terms and conditions for source code escrow, such as the escrow agent,the escrow fees, the deposit frequency and format,the release events and procedures, and the verification and audit requirements. References: CISA ReviewManual (Digital Version)1, Chapter 3, Section 3.2.2

 The first step for the security incident response team after an IS security attack is reported is to perform a damage assessment. This involves identifying the scope, impact and root cause of the incident, as well as collecting and preserving evidence for further analysis and investigation. Reporting results to management, documenting lessons learned and prioritizing resources for corrective action are important steps, but they should be done after the damage assessment is completed. References: CISA Review Manual (DigitalVersion), Chapter 6, Section 6.31

The most effective method of destroying sensitive data stored on electronic media is physical destruction, which involves breaking, shredding, melting, or incinerating the media to make it unreadable and unrecoverable. Degaussing, random character overwrite, and low-level formatting are methods of sanitizing or erasing data from electronic media, but they do not guarantee complete destruction of data and may leave some traces that can be recovered by advanced techniques. Therefore, physical destruction is the most secure and reliable method of data disposal for sensitive data. References: CISA Review Manual (Digital Version), Chapter 5: Protection of Information Assets, Section 5.4: Data Disposal

 An organization is shifting to a remote workforce. In preparation, the IT department is performing stress and capacity testing of remote access infrastructure and systems. This type of control is being implemented to direct or guide actions to achieve a desired outcome. Therefore, it is a directive control. Directive controls are proactive controls that seek to prevent undesirable events from occurring. They include policies, standards, procedures, guidelines, training, and testing. Detective controls are reactive controls that seek to identify undesirable events that have already occurred. They include monitoring, logging, auditing, and reporting. Preventive controls are proactive controls that seek to avoid undesirable events from occurring. They include authentication, encryption, firewalls, and antivirus software. Compensating controls are alternative controls that provide a similar level of protection as the primary controls when the primary controls are not feasible or cost-effective. They include segregationof duties, manual reviews, and backup systems. References: CISA Review Manual (Digital Version), [ISACA Glossary of Terms]

 Application containers are a form of operating system virtualization that share the same kernel as the host operating system. This means that any vulnerability or compromise in the kernel can affect all the containers running on the same host, as well as the host itself. Additionally, containers may have privileged access to the kernel resources and functions, which can pose a risk of unauthorized or malicious actions by the container processes. Therefore, securing the kernel is a critical aspect of application container security.

Shared registries (option A) are not an inherent risk in the application container infrastructure, but they are a potential risk that depends on how they are configured and managed. Shared registries are repositories that store and distribute container images. They can be public or private, and they can have different levels of security and access controls. Shared registries can pose a risk of exposing sensitive data, distributing malicious or vulnerable images, or allowing unauthorized access to images. However, these risks can be mitigated by using secure connections, authentication and authorization mechanisms, image signing and scanning, and encryption.

Host operating system (option B) is not an inherent risk in the application container infrastructure, but it is a potential risk that depends on how it is configured and maintained. Host operating system is the underlying platform that runs the application containers and provides them with the necessary resources and services. Host operating system can pose a risk of exposing vulnerabilities, misconfigurations, or malware that can affect the containers or the host itself. However, these risks can be mitigated by using minimal and hardened operating systems, applying patches and updates, enforcing security policies and controls, and isolating and monitoring the host.

Shared data (option C) is not an inherent risk in the application container infrastructure, but it is a potential risk that depends on how it is stored and accessed. Shared data is the information that is used or generated by the application containers and that may be shared among them or with external entities. Shared data can pose a risk of leaking confidential or sensitive data, corrupting or losing data integrity,or violating data privacy or compliance requirements. However, these risks can be mitigated by using secure storage solutions, encryption and decryption mechanisms, access control and auditing policies, and backup and recovery procedures.

Therefore, option D is the correct answer.

References:

Application Container Security Guide | NIST

CSA for a Secure Application Container Architecture

Application Container Security: Risks and Countermeasures

 The greatest impact as a result of the ongoing deterioration of a detective control is an increased number of false negatives in security logs. A detective control is a control that monitors and identifies any deviations or anomalies from the expected or normal behavior or performance of a system or process. A security log is a record of events or activities that occur within a system or network, such as user access, file changes, system errors, or security incidents. A false negative is a situation where a security log fails to detect or report an actual deviation or anomaly that has occurred, such as an unauthorized access, a malicious modification, or a security breach. An increased number of false negatives in security logs can have a significant impact on the organization’s security posture and risk management, because it can prevent timely detection and response to security threats, compromise the accuracy and reliability of security monitoring and reporting, and undermine the accountability and auditability of user actions and transactions. The other options are not as impactful as anincreased number of false negatives in security logs, because they either do not affect the detection capability of a detective control, or they have less severe consequences for security management. References: CISA Review Manual (Digital Version)1, Chapter 5, Section 5.2.1

 Independence would be most impacted if an IS auditor were to assist with the implementation of recommended control enhancements, as this would create a conflict of interest and impair the objectivity and credibility of the IS auditor. Integrity, materiality, and accountability are important attributes of an IS auditor, but they are not directly affected by the involvement in the implementation of control enhancements. References: CISA Review Manual (Digital Version), Chapter 1: Information Systems Auditing Process, Section 1.1: IS Audit Standards, Guidelines and Codes of Ethics

 The auditor’s best course of action when senior management disagrees with some of the facts presented in the draft audit report is to gather evidence to analyze senior management’s objections. The auditor should not revise the assessment, escalate the issue, or finalize the report without changes until they have evaluated the validity and relevance of senior management’s objections and resolved any discrepancies or misunderstandings. The auditor should maintain a professional and objective attitude and seek to present a fair and accurate audit report based on sufficient and appropriate evidence. References:

CISA Review Manual (Digital Version), page 372

CISA Questions,Answers & Explanations Database, question ID 3338

Comprehensive and Detailed Step-by-Step Explanation:

Exploitationis the phase where testersleverage identified vulnerabilitiestogain unauthorized accessto systems.

Exploitation (Correct Answer – B)

Attackers use techniques such as SQL injection, buffer overflow, or privilege escalation.

Example:A tester exploits a weak password to gain admin access.

Exfiltration (Incorrect – A)

The process of stealing dataaftergaining access.

Reconnaissance (Incorrect – C)

The initial stage where attackers gather information about the target.

Scanning (Incorrect – D)

Involves identifying open ports and services but does not involve actual attacks.

References:

ISACA CISA Review Manual

NIST 800-115 (Technical Guide to Security Testing)

 The auditor’s best action when IT management provides suitable evidence for a control that had been concluded as ineffective is to re-perform the audit before changing the conclusion. This means that the auditor should verify the validity, completeness, and timeliness of the evidence provided by IT management and test the effectiveness of the new control in meeting the audit objectives. The auditor should not change the conclusion based on evidence provided by IT management without re-performing the audit, as this could compromise the auditor’s independence and objectivity. The auditor should also not explain to IT management that the new control will be evaluated during follow-up or add comments about the action taken by IT management in the report, as these actions do not address the original audit finding. References: CISA Review Manual, 27thEdition, page 439

 Implementing solutions to correct defects is a responsibility of the development function, not the quality assurance (QA) function. The QA function should ensure that the development process follows the established standards and methodologies, and that the defects are identified and reported. The QA function should not be involved in fixing the defects, as this would compromise its independence and objectivity. The other options are valid responsibilities of the QA function, and they should not raise concern for an IS auditor. References: CISA Review Manual (Digital Version) 1, page 300.

Conducting periodic testing and incorporating lessons learned is the best way to improve the effectiveness of an incident response team. This allows the team to practice their response procedures, identify any gaps or weaknesses in their response, and learn from their mistakes. It also helps to keep the team’s skills sharp and up-to-date. The lessons learned from these tests can then be used to improve the team’s procedures and performance12. While understanding information systems technology, disseminating incident response procedures, and publishing KPI metrics can contribute to the effectiveness of the team, they do not provide the same level of continuous improvement as periodic testing and learning from experience.

The primary reason for an IS auditor to perform a risk assessment is to help identify areas with a relatively high probability of material problems. A risk assessment is a systematic process of evaluating the potential risks that may be involved in an activity or undertaking. It involves identifying the sources of risk, analyzing the likelihood and impact of the risk, and prioritizing the risks based on their significance. A risk assessment helps the IS auditor to focus on the areas that are most vulnerable to errors, fraud, or inefficiencies, and to design appropriate audit procedures to address those risks. A risk assessment also helps the IS auditor to allocate audit resources efficiently and effectively.

A risk assessment does not provide a basis for the formulation of corrective action plans, as this is a responsibility of management, not the IS auditor. A risk assessment does not increase awareness of the types of management actions that may be inappropriate, as this is a matter of professional ethicsand judgment. A risk assessment does not help to identify areas that are most sensitive to fraudulent or inaccurate practices, as this is a result of the risk assessment, not its purpose.

References:

ISACA, CISA Review Manual, 27th Edition, Chapter 1: The Process of Auditing Information Systems, Section 1.3: Risk Assessment in Planning1

Corporate Finance Institute, Audit Risk Model2

 The best recommendation to address the situation of inconsistencies in privacy requirements across third-party service provider contracts is to prioritize contract amendments for third-party providers. This is because:

Privacy requirements are essential to ensure the protection of personal information and compliance with relevant laws and regulations, such as the GDPR and the CCPA123.

Inconsistencies in privacy requirements can create risks of data breaches, legal liabilities, reputational damage, and consumer distrust for the organization that outsources its data processing to third-party providers123.

Suspending contracts with third-party providers that handle sensitive data (option A) is not a feasible or effective solution, as it may disrupt the business operations and cause contractual penalties or disputes4.

Reviewing privacy requirements when contracts come up for renewal (option C) is not a proactive or timely approach, as it may leave the organization exposed to privacy risks for a long period of time until the contracts expire4.

Requiring third-party providers to sign nondisclosure agreements (NDAs) (option D) is not a sufficient measure, as NDAs only cover the confidentiality of information, but not other aspects of privacy, such as data minimization, retention, access, deletion, and security4.

Therefore, the best recommendation is to prioritize contract amendments for third-party providers (option B), as this would allow the organization to align the privacy requirements with its own policies and standards, as well as with the applicable laws and regulations. This would also enable the organization to monitor and audit the compliance of third-party providers with the privacy requirements and enforce appropriate remedies or sanctions in case of noncompliance45.

References: 1: Understanding CPRA service provider contract requirements - Transcend 2: What you must know about ‘third parties’ under GDPR and CCPA 3: Data Privacy Implications for ServiceProvider & Third-Party Contracts 4: Privacy and outsourcing for businesses - Office of the Privacy Commissioner of Canada 5: Data Security Guidelines for outsourcing and third party compliance - European Union Agency for Network and Information Security

This method is known as creating a digital signature of the message. It ensures the integrity of the message by verifying that it has not been tampered with in transit. The process involves hashing the message and encrypting the hash value with the sender’s private key. Any changes to the message will result in a different hash value1. This method is used in DomainKeys Identified Mail (DKIM), which verifies an email’s domain and helps show that the email has not been tampered with in transit2.

References:

Understanding Digital Signatures | CISA

Using DomainKeys Identified Mail (DKIM) in your organisation

A self-checking digit is the most effective accuracy control for entry of a valid numeric part number. This method involves adding an extra digit at the end of every number which is calculated from the other digits. This digit is then used to check the accuracy of the entered number1. While hash totals, online review of description, and comparison to historical order pattern can be used as accuracy controls, they are not as effective as a self-checking digit.

The best option that facilitates strategic program management is aligning projects with business portfolios (option C). This is because:

Strategic program management is the coordinated planning, management, and execution of multiple related projects that are directed toward the same strategic goals12.

Aligning projects with business portfolios means ensuring that the projects within a program are aligned with the organization’s strategic objectives, vision, and mission .

Aligning projects with business portfolios helps to prioritize the most valuable and impactful projects, optimize the allocation of resources, monitor the progress and performance of the program, and deliver the expected benefits and outcomes .

Implementing stage gates (option A) is a process of reviewing and approving projects at predefined points in their lifecycle to ensure that they meet the quality, scope, time, and cost criteria. While this can help to control and improve the project management process, it does not necessarily facilitate strategic program management, as it does not address the alignment of projects with business portfolios.

Establishing a quality assurance (QA) process (option B) is a process of ensuring that the project deliverables meet the quality standards and requirements of the stakeholders. While this can help to enhance the quality and satisfaction of the project outcomes, it does not necessarily facilitate strategic program management, as it does not address the alignment of projects with business portfolios.

Tracking key project milestones (option D) is a process of monitoring and reporting the completion of significant events or deliverables in a project. While this can help to measure and communicate the progress and status of the project, it does not necessarily facilitate strategic program management, as it does not address the alignment of projects with business portfolios.

Therefore, the best option that facilitates strategic program management is aligning projects with business portfolios (option C), as this ensures that the projects within a program are consistent with the organization’s strategic goals and objectives.

References: 1: Program Management: The Key to Strategic Execution 2: The Ultimate Guide to Program Management [2023] • Asana : Project Portfolio Management - PMI : Aligning Projects with Strategy - Harvard Business Review : What Is Stage-Gate Process? - ProjectManager.com : Quality Assurance in Project Management - PMI : What Is a Milestone in Project Management? - TeamGantt

Transaction tagging is a technique by which transactions are marked with unique identifiers or headers and traced through the system using agents or sensors at each processing point1. Transaction tagging allows for continuous monitoring and analysis of transaction processing in a high-volume, real-time system by providing visibility into the performance, availability, and reliability of each transaction and its components1. Transaction tagging can also help to identify and isolate errors, bottlenecks, anomalies, and security issues in the system1.

Parallel simulation involves running the same data through two systems and comparing the results1. In this case, the bank’s data would be processed using both the modified interest calculation program and an audit software. The results from both systems would then be compared to check for discrepancies1. This technique provides strong evidence of the correctness of interest calculations as it directly tests the program’s output against a known and trusted output1. While source code review23, manual verification of a sample of results4567, and review of QA test results8910 can also provide valuable insights, they do not offer the same level of direct, comparative evidence as parallel simulation1.

References:

Parallel simulation in IT testing - Universal CPA Review

5 code review best practices - Work Life by Atlassian

How to Make Good Code Reviews Better - Stack Overflow

Guidelines for the validation and verification of quantitative and qualitative test methods - Mathematics LibreTexts

Method Validation and Verification - University of Utah

Sample Procedure for Method Validation - NIST

Method validation and verification - CFS

Good Practices for Quality Assurance Reviewers: Assessing Evidence of Supervisory Review - IGNET

How do quality assurance engineers test calculations? - Software Quality Assurance & Testing Stack Exchange

Quality Assurance/Quality Control (QA/QC) Plan and Procedures - UNFCCC

The best way to identify whether the IT help desk is meeting service level agreements (SLAs) is A. Review exception reports. Exception reports are documents that highlight any deviations from the agreed service levels, such as breaches, delays, or failures. They can help the IT help desk to monitor their performance, identify root causes, and implement corrective actions. Reviewing exception reports can also help the IT help desk to communicate with the end users and stakeholders about any service issues and their resolution.

Involving the application owner early in the audit planning process is the best way to contribute to the quality of an audit of a business-critical application. The application owner has a deep understanding of the application and its business context, which can provide valuable insights for the audit. Early involvement can also help ensure that the audit is aligned with the business objectives and risks, and that any potential issues are identified and addressed promptly12.

References:

Business Critical Applications: An In-Depth Look

Framework for Audit Quality - IFAC

An IS auditor has identified deficiencies within the organization’s software development life cycle (SDLC) policies. The SDLC is the process of planning, developing, testing, and deploying software applications1. SDLC policies are the guidelines and standards that govern the SDLC process and ensure its quality, security, and compliance2. Deficiencies in SDLC policies can lead to various risks, such as:

Software errors, bugs, or vulnerabilities that can affect the functionality, reliability, or security of the applications3

Software failures, delays, or overruns that can affect the delivery, performance, or customer satisfaction of the applications3

Software non-compliance that can result in legal, regulatory, or contractual violations or penalties3

The next step that the IS auditor should do after identifying deficiencies in SDLC policies is to communicate the observation to the auditee. The auditee is the person or entity that is subject to the audit and is responsible for the area being audited4. In this case, the auditee could be the software development manager, the project manager, or the senior management of the organization. Communicating the observation to the auditee is important for several reasons:

It allows the IS auditor to verify the accuracy and validity of the observation and gather additional evidence or information from the auditee4

It gives the auditee an opportunity to respond to the observation and provide their perspective, explanation, or justification for the deficiencies4

It enables the IS auditor to discuss with the auditee the potential impact, root cause, and remediation plan for the deficiencies4

It fosters a collaborative and constructive relationship between the IS auditor and the auditee and promotes transparency and accountability in the audit process4

The other options are not as appropriate as communicating the observation to the auditee. Documenting the findings in the audit report is a later stepthat should be done after communicating with the auditee and finalizing the observation. Identifying who approved the policies is not relevant for addressing the deficiencies and may imply blame or fault on a specific person or group. Escalating the situation to the lead auditor is not necessary unless there is a serious disagreement or conflict with the auditee that cannot be resolved by normal communication. Therefore, option D is the correct answer.

References:

What Is The Software Development Life Cycle? | PagerDuty

Software Development Life Cycle (SDLC) Policy | StrongDM

What Is SDLC? Best Phases, Methodologies, and Benefits Revealed - Kellton

Communicating Audit Findings

Operating system parameters are settings or values that affect the behavior or performance of the operating system1. Modifications to the operating system parameters may be necessary to improve the system functionality, security, or efficiency. However, such modifications may also introduce risks or errors that can affect the system stability, compatibility, or integrity. Therefore, modifications to the operating system parameters should be authorized and documented by the appropriate authority2.

A change control log is a record of all changes made to the system, including the date, time, description, reason, authorization, and impact of each change3. A change control log can help the IS auditor to verify whether modifications to the operating system parameters were authorized by comparing the log entries with the actual system settings and the change approval documents4.

Unstructured data is data that does not have a predefined model or organization, making it difficult to store, process, and analyze using traditional relational databases or spreadsheets. Unstructured data can pose a risk to an organization if it contains sensitive, confidential, or regulated information that is not properly secured, managed, or governed. To minimize the risk of unstructured data, the first step is to identify the repositories of unstructured data, such as file servers, cloud storage, email systems, social media platforms, etc. This will help to understand the scope, volume, and nature of unstructured data in the organization, and to prioritize the areas that need further analysis and action. References: Unstructured data -Wikipedia

The primary responsibility of a project steering committee is to provide regular project updates and oversight. A project steering committee is an advisory group that consists of senior stakeholders and experts who offer guidance and support to a project manager and their team. The steering committee is mainly concerned with the direction, scope, budget, timeline, and methods used to realize a given project1.

One of the key roles of a steering committee is to monitor the progress and performance of the project and ensure that it aligns with the business objectives and stakeholder expectations. The steering committee also provides feedback, advice, and recommendations to the project manager and helps them resolve any issues or challenges that may arise during the project lifecycle. The steering committee communicates regularly with the project manager and other stakeholders through meetings, reports, and presentations23.

Therefore, providing regular project updates and oversight is the primary responsibility of a project steering committee.

References:

Steering Committee: Definition, Roles & Meeting Tips - ProjectManager

Project Steering Committee: Roles, Best Practices, Challenges – ProjectPractical

Steering Committee: Complete Guide with Examples & Templates - Status.net

The primary benefit of a tabletop exercise for an incident response plan is to increase confidence in the team’s response readiness (D). A tabletop exercise is a simulated scenario that tests the effectiveness and efficiency of the incident response plan and team. It allows the team to practice their roles and responsibilities, review their procedures and tools, and identify and resolve any gaps or issues in their response process. A tabletop exercise can help the team to improve their skills, knowledge, and communication, and to prepare for real incidents1.

Anti-malware tool audit logs would provide an IS auditor with the best evidence of continuous compliance with the global organization’s policy that states that all workstations must be scanned for malware each day. Anti-malware tool audit logs are records that capture the activities and events related to the anti-malware software installed on the workstations, such as scan schedules, scan results, updates, alerts, and actions taken1. These logs can help the IS auditor to verify that the anti-malware software is functioning properly, that the scans are performed regularly and effectively, and that any malware incidents are detected and resolved in a timely manner2. Anti-malware tool audit logs can also help the IS auditor to identify any gaps or weaknesses in the anti-malware policy or implementation, and to provide recommendations for improvement3.

The other options are not the best evidence of continuous compliance with the anti-malware policy. Penetration testing results are reports that show the vulnerabilities and risks of the workstations and network from an external or internal attacker’s perspective4. While penetration testing can help toassess the security posture and resilience of the organization, it does not provide information on the daily anti-malware scans or their outcomes. Management attestation is a statement or declaration from the management that they have complied with the anti-malware policy5. While management attestation can demonstrate commitment and accountability, it does not provide objective or verifiable evidence of compliance. Recent malware scan reports are documents that show the summary or details of the latest anti-malware scans performed on the workstations. While recent malware scan reports can indicate the current status and performance of the anti-malware software, they do not provide historical or comprehensive evidence of compliance.

References:

Malwarebytes Anti-Malware (MBAM) log collection and threat reports …

Malicious Behavior Detection using Windows Audit Logs

PCI Requirement 5.2 – Ensure all Anti-Virus Mechanisms are Current …

Management Attestation - an overview | ScienceDirect Topics

How to Read a Malware Scan Report | Techwalla

When operational management informs the IS auditor that recent organizational changes have addressed previously identified risks and implementing the action plan is no longer necessary, the IS auditor should accept management’s assertion and report that the risks have been addressed. However, it is essential to document this communication and ensure that there is evidence supporting management’s claim. If there are any doubts or concerns, further investigation may be necessary. The auditor should not assume new risks without proper assessment or evidence1. References: 1(https://www.isaca.org/resources/isaca-journal/issues/2016/volume-6/enhancing-the-audit-follow-up-process-using-cobit-5)

 The risk assessment process involves identifying the information assets that are at risk, analyzing the threats and vulnerabilities that could affect them, evaluating the impact and likelihood of a risk event, and determining the appropriate controls to mitigate the risk. The first step is to identify the information assets, as they are the objects of protection and the basis for the rest of the process. Without knowing what assets are at risk, it is not possible to assess their value, exposure, or protection level. References: ISACA Frameworks: Blueprints for Success

This is because the follow-up of agreed corrective actions for reported audit issues should be done after the auditee has had enough time to implement the corrective actions and demonstrate their effectiveness and sustainability. The follow-up audit should not be too soon or too late, but based on a reasonable and realistic timeframe that allows for adequate testing and verification of the control operation12.

Answer A. Progress updates indicate that the implementation of agreed actions is on track. is not the best answer, because progress updates are not sufficient to guide the follow-up audit timing. Progress updates are useful for monitoring and communicating the status and challenges of the corrective actions, but they do not provide conclusive evidence of the control operation. The follow-up audit should be based on actual results and outcomes, not on expectations or projections12.

Answer C. Business management has completed the implementation of agreed actions on schedule. is not the best answer, because the completion of the implementation of agreed actions is not enough to guide the follow-up audit timing. The completion of the implementation only indicates that the auditee has taken the necessary steps to address the audit issues, but it does not guarantee that the corrective actions are effective and sustainable. The follow-up audit should be based on the evaluation and validation of the control operation, not on the completion of the control implementation12.

Answer D. Regulators have announced a timeline for an inspection visit. is not the best answer, because the regulators’ inspection visit is not relevant to guide the follow-up audit timing. The regulators’ inspection visit is an external factor that may or may not coincide with the internal follow-up audit schedule. The follow-up audit should be based on the internal audit plan and objectives, not on the external audit requirements or expectations12.

The most concerning thing for an IS auditor reviewing an IT strategy document is that the strategic IT goals are derived solely from the latest market trends. An IT strategy document is a blueprint that defines how an organization will use technology to achieve its goals. It should be based on a thorough analysis of the organization’s internal and external factors, such as its vision, mission, values, objectives, strengths, weaknesses, opportunities, threats, customers, competitors, regulations, and industry standards. An IT strategy document should also align with the organization’s business strategy and reflect its unique needs and capabilities. If an IT strategy document is derived solely from the latest market trends, it may not be relevant or appropriate for the organization’s specific situation. It may also lack coherence, consistency, feasibility, or sustainability.

The other options are not as concerning as option C. Target architecture is defined at a technical level is not a concern for an IS auditor reviewing an IT strategy document. Target architecture is the desired state of an organization’s IT systems in terms of their structure, functionality, performance, security, interoperability, and integration. Defining target architecture at a technical level can help an IS auditor to understand how the organization plans to achieve its strategic IT goals and what technical requirements and standards it needs to follow. The previous year’s IT strategic goals were not achieved is not a concern for an IS auditor reviewing an IT strategy document. The previous year’s IT strategic goals are the outcomes that the organization intended to accomplish with its IT initiatives in the past year. Not achieving these goals may indicate some challenges or gaps in the organization’s IT performance or execution. However, this does not necessarily affect the quality or validity of the current IT strategy document. An IS auditor should focus on evaluating whether the current IT strategy document is realistic, measurable, achievable, relevant, and time-bound. Financial estimates of new initiatives are disclosed within the document is not a concern for an IS auditor reviewing an IT strategy document. Financial estimates are projections of the costs and benefits of new initiatives that are part of the IT strategy document. Disclosing financial estimates within the document can help an IS auditor to assess whether the new initiatives are aligned with the organization’s budget and resources and whether they provide value for money. References: IT Strategy Template for a Successful Strategic Plan | Gartner, Definitive Guide to Developing anIT Strategy and Roadmap - CioPages, An Example of a Well-Developed IT Strategy Plan - Resolute

A post-implementation change review is the best compensating control against segregation of duties conflicts in new code development. This process involves a thorough review of the changes after they have been implemented to ensure that they meet their objectives and that the stakeholders are satisfied with the results1. It provides an opportunity to identify and correct any issues or conflicts that may have arisen during the development and implementation process. While other options like adding developers to the change approval board, limiting code deployment access to a small number of people, and creating staging environments can also serve as compensating controls, a post-implementation change review provides a more comprehensive and effective control mechanism21.

References:

Review and Close Change process ST 2 5 - Micro Focus

Change Management for SOC: Risks, Controls, Audits, Guidance

The main risk associated with adding a new system functionality during the development phase without following a project change management process is that the new functionality may not meet requirements (option B). This is because:

A project change management process is a set of procedures that defines how changes to the project scope, schedule, budget, quality, or resources are requested, evaluated, approved, implemented, and controlled12.

A project change management process helps to ensure that the changes are aligned with the project objectives, stakeholders’ expectations, and business needs12.

Adding a new system functionality during the development phase without following a project change management process can introduce risks such as:

The added functionality has not been documented (option A), which can lead to confusion, inconsistency, errors, and rework3.

The project may fail to meet the established deadline (option C), which can result in delays, penalties, and customer dissatisfaction3.

The project may go over budget (option D), which can cause cost overruns, financial losses, and reduced profitability3.

However, the main risk is that the new functionality may not meet requirements (option B), which can have serious consequences such as:

The new functionality may not be compatible with the existing system or other components3.

The new functionality may not be tested or verified for quality, performance, security, or usability3.

The new functionality may not deliver the expected value or benefits to the users or customers3.

The new functionality may not comply with the regulatory or contractual obligations3.

The new functionality may cause dissatisfaction, complaints, or litigation from the stakeholders3.

Therefore, the main risk associated with adding a new system functionality during the development phase without following a project change management process is that the new functionality may not meet requirements (option B), as this can jeopardize the success and acceptance of the project.

References: 1: How to Make a Change Management Plan (Templates Included) - ProjectManager 2: What Is Change Management? Process & Models Explained - ProjectManager 3: 8 Steps for an Effective Change Management Process - Smartsheet

A project deliverable is a tangible or intangible product or service that is produced as a result of a project and delivered to the customer or stakeholder. A project deliverable can be either an intermediate deliverable that is part of the project process or a final deliverable that is the outcome of the project.

An agile software development methodology is a project management approach that involves breaking the project into phases and emphasizes continuous collaboration and improvement. Teams follow a cycle of planning, executing, and evaluating. Agile software development methodologies value working software over comprehensive documentation and respond to change over following a plan.

Rapidly created working prototypes are most likely to be a project deliverable of an agile software development methodology because they:

Provide early and frequent feedback from customers and stakeholders on the functionality and usability of the software product

Allow for rapid validation and verification of the software requirements and design

Enable continuous improvement and adaptation of the software product based on changing customer needs and expectations

Reduce the risk of delivering a software product that does not meet customer needs or expectations

Increase customer satisfaction and trust by delivering working software products frequently and consistently

Some examples of agile software development methodologies that use rapidly created working prototypes as project deliverables are:

Scrum - a framework that organizes the work into fixed-length sprints (usually 2-4 weeks) and delivers potentially shippable increments of the software product at the end of each sprint1

Extreme Programming (XP) - a methodology that focuses on delivering high-quality software products through practices such as test-driven development, pair programming, continuous integration, and frequent releases2

Rapid Application Development (RAD) - a methodology that emphasizes rapid prototyping and user involvement throughout the software development process3

The other options are not likely to be project deliverables of an agile software development methodology.

Strictly managed software requirements baselines are not likely to be project deliverables of an agile software development methodology. A software requirements baseline is a set of agreed-upon and approved software requirements that serve as the basis for the software design, development, testing,and delivery. A strictly managed software requirements baseline is a software requirements baseline that is controlled and changed only through a formalchange management process. Strictly managed software requirements baselines are more suitable for traditional or waterfall software development methodologies that follow a linear and sequential process of defining, designing, developing, testing, and delivering software products. Strictly managed software requirements baselines are not compatible with agile software development methodologies that embrace change and flexibility in the software requirements based on customer feedback and evolving needs.

Extensive project documentation is not likely to be project deliverables of an agile software development methodology. Project documentation is any written or electronic information that describes or records the activities, processes, results, or decisions of a project. Extensive project documentation is project documentation that covers every aspect of the project in detail and requires significant time and effort to produce and maintain. Extensive project documentation is more suitable for traditional or waterfall software development methodologies that rely on comprehensive documentation to communicate and document the project scope, requirements, design, testing, and delivery. Extensive project documentation is not compatible with agile software development methodologies that value working software over comprehensive documentation and use minimal documentation to support the communication and collaboration among the project team members.

Automated software programming routines are not likely to be project deliverables of an agile software development methodology. Automated software programming routines are programs or scripts that perform repetitive or complex tasks in the software development process without human intervention. Automated software programming routines can improve the efficiency, quality, and consistency of the software development process by reducing human errors, saving time, and enforcing standards. Automated software programming routines can be used in any software development methodology, but they are not specific to agile software development methodologies. Automated software programming routines are not considered as project deliverables because they are not part of the final product that is delivered to the customer.

The auditor’s greatest concern when reviewing data inputs from spreadsheets into the core finance system would be undocumented code that formats data and transmits directly to the database. This is because undocumented code can introduce errors, inconsistencies, and security risks in the data processing and reporting. Undocumented code can also make it difficult to verify the accuracy, completeness, and validity of the data inputs and outputs, as well as to trace the source and destination of the data. Undocumented code can also violate the principles of segregation of duties, as the same person who creates the code may also have access to the data and the database.

The other options are not as concerning as undocumented code, although they may also pose some risks. A lack of complete inventory of spreadsheets and inconsistent file naming may make itchallenging to identify and locate the relevant spreadsheets, but they do not directly affect the quality or integrity of the data inputs. The department data protection policy not being reviewed or updated for two years may indicate a lack of awareness or compliance with the current data protection regulations, but it does not necessarily imply that the data inputs are compromised or inaccurate. Spreadsheets being accessible by all members of the finance department may increase the risk of unauthorized or accidental changes to the data, but it can be mitigated by implementing access controls, password protection, and audit trails.

References:

ISACA, CISA Review Manual, 27th Edition, 2019, p. 2261

Five Common Spreadsheet Risks and Ways to Control Them2

GREATEST Concerns When Reviewing Data Inputs from Spreadsheets3

 The best option for ensuring confidentiality through the use of asymmetric encryption is to encrypt a message with the recipient’s public key (option A). This is because:

Asymmetric encryption, also known as public-key cryptography, is a type of encryption that uses a pair of keys to encrypt and decrypt data. The pair of keys includes a public key, which can be shared with anyone, and a private key, which is kept secret by the owner12.

In asymmetric encryption, the sender uses the recipient’s public key to encrypt the data. The recipient then uses their private key to decrypt the data. This approach allows for secure communication between two parties without the need for both parties to have the same secret key12.

Encrypting a message with the recipient’s public key ensures that only the recipient can decrypt it with their private key. This provides confidentiality, which means that the message is protected from unauthorized access or disclosure12.

Encrypting a message with the sender’s private key (option B) does not ensure confidentiality, but rather authentication, which means that the message can be verified as coming from the sender. This is because anyone can decrypt the message with the sender’s public key, but only the sender can encrypt it with their private key12.

Encrypting a message with the sender’s public key (option C) or the recipient’s private key (option D) does not make sense, as it would render the message unreadable by both parties. This is because neither party has the corresponding key to decrypt it12.

Therefore, the best option for ensuring confidentiality through the use of asymmetric encryption is to encrypt a message with the recipient’s public key (option A), as this ensures that only the recipient can decrypt it with their private key.

References: 1: What is asymmetric encryption? | Asymmetric vs. symmetric … - Cloudflare 2: What is Asymmetric Encryption? - GeeksforGeeks

The IS auditor’s greatest concern when reviewing a business case for a proposed implementation of a third-party system should be A. Lack of ongoing maintenance costs. This is because ongoing maintenance costs are an essential part of the total cost of ownership (TCO) of a third-party system, and they can have a significant impact on the return on investment (ROI) and the feasibility of the project. If the business case does not include ongoing maintenance costs, it may underestimate the true cost of the project and overestimate the benefits. This could lead to poor decision making and unrealistic expectations.

Lack of training materials (B), lack of plan for pilot implementation ©, and lack of detailed work breakdown structure (D) are also potential issues that could affect the quality and success of the project, but they are not as critical as lack of ongoing maintenance costs. Training materials can be developed or acquired later, pilot implementation can be planned during the project initiation or planning phase, and work breakdown structure can be refined as the project progresses. However, ongoing maintenance costs are difficult to change or estimate once the project is approved and implemented, and they can have long-term implications for the organization. Therefore, they should be included and analyzed in the business case.

 Scope creep is the uncontrolled expansion of a project’s scope, which can result in delays, cost overruns, and quality issues. To mitigate the risk of scope creep, an IS auditor should look for projectchange management controls, which are processes and procedures for managing changes to the project’s scope, schedule, budget, and quality. Project change management controls ensure that changes are properly requested, approved, documented, communicated, and implemented. Source code version control, existence of an architecture review board, and configuration management are also important for software development, but they do not directly address the risk of scope creep. References: ISACA Frameworks: Blueprints for Success, Project Management Institute: A Guide to the Project Management Body of Knowledge

The primary reason for an organization to classify the data stored on its internal networks is to implement data protection requirements1234. Data classification helps organizations understand what data they have, its characteristics, and what security and privacy requirements it needs to meet so that the necessary protections can be achieved3. While determining data retention policy56, complying with the organization’s data policies27, and following industry best practices891011 are important aspects of data classification, they are secondary to the fundamental requirement of implementing data protection requirements.

References:

What Is Data Classification & Why Is It Important? — RiskOptics

Data Classification Policy: Definition, Examples, & Free Template - Hyperproof

Data Classification Policy: Benefits, Examples, and Techniques - Satori

What is a Data Classification Policy? - Digital Guardian

Data Classification and Practices - NIST

Data Classification as a Catalyst for Data Retention and Archiving …

What is data classification? - Cloud Adoption Framework

Data Classification - Data Security Policies | ITS Policies …

IMPLEMENTING DATA CLASSIFICATION PRACTICES - NIST

Best Practices for Data Classification | Forcepoint

 Control totals are a method of verifying the accuracy and completeness of data processing by comparing the totals of key fields in input and output records1. Control totals can be used to reduce the risk of incomplete processing, which is the failure to process all the data or transactions that are expected or required2.

Incomplete processing can result in data loss, inconsistency, or incompleteness, which can affect the quality and reliability of the information system and its outputs. Incomplete processing can be caused by various factors, such as:

Hardware or software failures that interrupt the processing or transmission of data2

Human errors or omissions that skip or miss some data or transactions2

Malicious attacks or unauthorized access that delete or modify some data or transactions2

Environmental hazards or disasters that damage or destroy some data or transactions2

Control totals can help detect and prevent incomplete processing by:

Providing a benchmark or reference point to compare the input and output data or transactions1

Identifying any discrepancies or deviations from the expected or required totals1

Alerting the users or operators to investigate and resolve the causes of incomplete processing1

Ensuring that all the data or transactions are properly transmitted, converted, and processed1

The other options are not as relevant as control totals for reducing the risk of incomplete processing. Posting to the wrong record is the error of assigning or transferring data or transactions to an incorrect account, file, or record3. Improper backup is the failure to create, store, or restore copies of data or transactions in case of loss, corruption, or damage4. Improper authorization is the lack of proper permission or approval to access, modify,or process data or transactions. Control totals may not be able to prevent or detect these errors or failures, as they are not related to the completeness of data processing. Therefore, option B is the correct answer.

References:

control totals - Barrons Dictionary - AllBusiness.com

What is control total amount? - Sage Advice US

Posting Error Definition

Backup Definition

[Authorization Definition]

The correct answer is A. Overwriting multiple times. Overwriting is a method of securely erasing data from a hard disk by replacing the existing data with random or meaningless data, making it difficult or impossible to recover the original data1. Overwriting multiple times, also known as multiple-pass overwriting, is a more effective way of disposing of sensitive data than overwriting once, as it reduces the possibility of residual traces of data that could be recovered by advanced techniques2. Overwriting multiple times can be done by using specialized software tools that follow certain standards or algorithms, such as the US Department of Defense’s DoD 5220.22-M or the Gutmann method3.

If the audit team lacks the necessary knowledge to audit a system that uses an AI algorithm, engaging external consultants who have audit experience and knowledge of AI would be the best approach12. These consultants can provide the expertise needed to effectively audit the AI system12. This approach ensures that the audit is conducted thoroughly and accurately, without requiring the audit team to acquire new skills or knowledge12.

References:

Auditing Guidelines for Artificial Intelligence - ISACA

An In-Depth Guide To Audit AI Models - Censius

 The IS audit manager should specifically review the detailed evidence of the successes and weaknesses of all contingency testing to substantiate the conclusions of the audit of the corporate disaster recovery test. This is because the detailed evidence can provide the audit manager with a clear and objective picture of how well the disaster recovery plan was executed, what issues or gaps were encountered, and what recommendations or actions were taken to address them. The detailed evidence can also help the audit manager to verify the accuracy, completeness, and validity of the audit findings, as well as to evaluate the adequacy and effectiveness of the disaster recovery controls.

The other options are not as specific or relevant as the detailed evidence of all contingency testing. Overviews of interviews between data center personnel and the auditor may provide some useful information, but they are not sufficient to substantiate the conclusions without supporting evidence from the actual testing. Prior audit reports involving other corporate disaster recovery audits may provide some benchmarking or comparison data, but they are not directly related to the current audit scope and objectives. Summary memos reflecting audit opinions regarding noted weaknesses mayprovide some high-level insights, but they are not enough to substantiate the conclusions without detailed evidence to back them up.

References:

ISACA, CISA Review Manual, 27th Edition, 2019, p. 2411

Disaster Recovery Audit Work Program2

Admin accounts typically have the highest level of privileges and access to sensitive data. If the passwords for these accounts are not set to expire, it increases the risk of unauthorized access and potential security breaches. This is especially true if an admin’s credentials are compromised, as the attacker could have ongoing access to critical systems and data1.

References:

Database Auditing - Satori

The most significant impact to an organization that does not use an IT governance framework is inadequate alignment of IT plans and business objectives. IT governance is a framework for the governance and management of enterprise information and technology (I&T) that supports enterprise goal achievement1. IT governance helps to ensure that IT investments and activities are aligned with the business strategy, vision, and values of the organization. IT governance also helps to optimize the value of IT, manage IT-related risks, and measure and monitor IT performance1.

Without an IT governance framework, an organization may face challenges such as:

Lack of clarity and direction for IT decision making

Inconsistent or conflicting IT priorities and demands

Inefficient or ineffective use of IT resources and capabilities

Poor quality or delivery of IT services and products

Increased exposure to IT-related threats and vulnerabilities

Reduced customer satisfaction and trust in IT

Missed opportunities for innovation and competitive advantage

Therefore, an organization that does not use an IT governance framework may fail to achieve its business objectives and may lose its competitive edge in the market.

References:

COBIT 2019 Framework Introduction and Methodology, Section 1.1: What Is Governance of Enterprise I&T?

IT Governance: Definitions, Frameworks and Planning, Section 1: What Is IT Governance?

The best way to evaluate the effectiveness of a newly developed application is to review acceptance testing results. Acceptance testing is a process of verifying that the application meets the specified requirements and expectations of the users and stakeholders. Acceptance testing results can provide evidence of the functionality, usability, reliability, performance, security and quality of the application.Performing a post-implementation review, analyzing load testing results, and performing a secure code review are also important activities for evaluating an application, but they are not as comprehensive or conclusive as acceptance testing results.

References: Info Technology & Systems Resources | COBIT, Risk, Governance … - ISACA, IT Governance and Process Maturity

Effective governance over IT infrastructure is indicated by the ability to deliver continuous, reliable performance12. This is because good governance ensures that IT investments support business objectives and produce measurable results towards achieving their strategies2. It involves implementing management and internal controls, strengthening security, financial controls, risk mitigation, and inspection and compliance obligations3. While security awareness programs, the number of servers, and the number of security incidents can be aspects of IT governance, they are not the best indicators of its effectiveness.

References:

The Value of IT Governance - ISACA

What is IT governance? A formal way to align IT & business strategy | CIO

Robust Governance - KPMG Global

Consolidating mission-critical applications onto a single large server introduces a single point of failure. If the server experiences an outage, all hosted applications could be impacted simultaneously, leading to significant operational disruptions. While continuous monitoring costs, potential network bandwidth issues, and challenges in capacity forecasting are valid concerns, the risk of a single outage affecting multiple critical applications presents the most substantial threat to business continuity.

References:

ISACA CISA Review Manual, 28th Edition, Chapter 4: Information Systems Operations and Business Resilience.

IT application owners having sole responsibility for architecture approval (B) is a major concern because it indicates a lack of oversight and segregation of duties.EA decisions should be reviewed by a cross-functional governance body to ensure alignment with security, compliance, and business objectives.

Other options:

The CIO chairing the review board (A)may indicate centralized leadership but is not inherently a risk.

EA governing non-IT projects (C)may indicate scope expansion but is not a security risk.

Security requirements being reviewed (D)is a best practice and not a concern.

The most effective control to maintain segregation of duties in a DevOps environment is A. Enforce approval prior to deployment by a member of the team who has not taken part in the development. Segregation of duties (SoD) is a principle that requires multiple actors to complete a task to reduce the risk of fraud, error, or abuse1. In a DevOps environment, where developers and operators work together to deliver software faster and more reliably, SoD may seem to be incompatible or impractical. However, SoD can still be achieved by implementing controls that ensure that no single person can develop, test, and deploy code without oversight or review2.

Enforcing approval prior to deployment by a member of the team who has not taken part in the development is an effective control that ensures that code changes are verified and validated by a peer before they are released to production. This control can help prevent or detect any unauthorized or malicious modifications, errors, or vulnerabilities in the code, and ensure that the code meets the quality and security standards3. This control can also promote collaboration and feedback among the team members, and improve the transparency and accountability of the software delivery process3.

A data analytics tool is the most effective way to detect as many abnormalities as possible during an IS audit, as it can process large volumes of data, perform complex calculations, and generate visualizations that reveal patterns, outliers, anomalies, or deviations from expected results. A data analytics tool can also help the auditor to test the entire population of data, rather than a sample, and to perform continuous auditing and monitoring.

References

ISACA CISA Review Manual, 27th Edition, page 256

What is Problem Solving? Steps, Process & Techniques | ASQ

Data Analytics for Auditors - IIA

A certificate authority (CA) is critical in a public key cryptographic system for mitigating man-in-the-middle (MITM) attacks. It ensures that public keys are authentic by issuing digital certificates, which bind a public key to an entity. The CA’s role in verifying identities and providing trust anchors prevents attackers from spoofing keys.

Strong Encryption Algorithms (Option A):Encryption ensures confidentiality but does not address spoofing risks.

Kerberos Authentication (Option B):Useful for mutual authentication but not central to public key infrastructure (PKI).

Registration Authority (Option C):Supports the CA but does not directly prevent MITM attacks.

Shadow IT refers to the use of IT systems, devices, software, or services without explicit organizational approval. This often occurs when employees or departments adopt tools that bypass official IT governance structures.

Using a Cloud-Based Order Management Tool Without Approval (Option A)is a clear example of shadow IT because the employee is circumventing established IT policies to implement a solution independently.

Accessing Personal Banking Information on a Company-Provided Laptop (Option B)is a potential misuse of resources but does not qualify as shadow IT since it does not involve unauthorized technology.

Using Personal Email for Client Communication (Option C)may violate communication policies but is not related to the adoption of unapproved IT systems.

Accessing Social Media on a Company-Provided Tablet (Option D)is improper use of a company asset but does not involve unauthorized IT tools.

Shadow IT introduces risks such as data breaches, lack of compliance, and inefficiencies due to lack of integration with official systems. Organizations should have clear policies and monitoring mechanisms to address such risks.

EVA is a project management technique that measures the performance of a project by comparing the actual work completed, the actual costs incurred, and the planned costs for the work scheduled. EVA can help determine if the project is on track, ahead of schedule, or behind schedule, and if the project is under budget, over budget, or on budget. EVA can also help forecast the final cost and schedule of the project based on the current performance.

References

ISACA CISA Review Manual, 27th Edition, page 255

18. Project Completion – Project Management – 2nd Edition

How to Measure Project Success | Smartsheet

Comprehensive and Detailed Step-by-Step Explanation:

AChange Approval Board (CAB)ensures thatall necessary testing and rollback planshave been reviewed before deployment.

Option A (Correct):ACABensures thatchanges are reviewed, tested, and approved, minimizing risks before an application is deployed. This includes confirming thatrollback plans are in place.

Option B (Incorrect):Standardized change requestsare important but donot guarantee review and approvalby management and stakeholders.

Option C (Incorrect):Third-party approvalmay be useful, but internalgovernance and control via a CABis more comprehensive.

Option D (Incorrect):Secure code reviewshelp identify vulnerabilities, but they donot confirm proper deployment and rollback procedures.

Hash totals are a control technique used to ensure data integrity during batch processing. A hash total is a calculated value based on the data in a batch. This value is compared to a pre-calculated hash total to confirm that all data has been processed correctly and without alteration.

References

ISACA CISA Review Manual (27th Edition): Hash totals are discussed within the context of batch processing controls.

Other Auditing Resources: Hash totals are a fundamental control technique discussed in various audit and information security publications.

Clear criteria ensure a consistent, rational approach to risk acceptance decisions, demonstrating management's deliberate and informed approach to risk management.

References

ISACA CISA Review Manual (Current Edition) - Chapter on Risk Management

Risk Management Frameworks (e.g., ISO 31000, NIST SP 800-39) - Emphasize the importance of defined risk assessment and decision-making processes.

Generalized audit software is a type of computer-assisted audit technique (CAAT) that allows the IS auditor to perform various audit tasks on the data stored in different file formats and databases1. Generalized audit software can help the IS auditor to select a sample for testing that includes the 80 largest client balances and a random sample of the rest, by using functions such as sorting, filtering, stratifying, and randomizing the data23. Generalized audit software can also help the IS auditor to perform other audit procedures on the sample, such as verifying the accuracy, completeness, and validity of the data4.

References

1: Generalized Audit Software (GAS) - ISACA 2: Audit Sampling - ISACA 3: How to use generalized audit software to perform audit sampling 4: Generalized Audit Software: A Review of Five Packages

Benford's Law analyzes numerical data to detect anomalies based on the frequency distribution of leading digits. For it to be effective, the dataset must follow specific criteria, including consistency in measurement units. If transactions are in different currencies, the leading digits can vary due to currency conversion rates, invalidating the analysis.

Double Integer Format (Option A):Benford’s Law applies to any set of numerical data, not specifically double integers.

Random Selection of Transactions (Option B):The data set must represent the entire population, not a random selection.

Limiting Analysis to Standard Deviations (Option C):This is irrelevant to the application of Benford's Law.

In the PDCA cycle, the "Plan" phase is where targets and objectives are defined. Focusing on this phase allows the auditor to evaluate the accuracy and appropriateness of the defined targets before they are implemented and measured in subsequent phases.

References

ISACA CISA Review Manual 27th Edition, Page 315-316 (PDCA Cycle)

Risk management techniques should be included in an IS development methodology. An IS development methodology is a set of guidelines, standards, and procedures that provide a structured and consistent approach to developinginformation systems. A good IS development methodology should cover all the phases of the system development life cycle (SDLC), from planning and analysis to design, implementation, testing, and maintenance1.

Risk management techniques are an essential part of an IS development methodology, as they help to identify, assess, prioritize, mitigate, monitor, and communicate the risks that may affect the success of the system development project. Risk management techniques can also help to ensure that the system meets the requirements and expectations of the stakeholders, complies with the relevant laws and regulations, and delivers value to the organization2.

The other options are not as relevant or appropriate as risk management techniques for an IS development methodology. Value-added activity analysis is a technique for evaluating the efficiency and effectiveness of business processes, but it is not specific to IS development3. Access control rules are policies and mechanisms for restricting or granting access to information systems and resources, but they are more related to security management than IS development4. Incident management techniques are methods for handling and resolving incidents that disrupt the normal operation of information systems and services, but they are more related to service management than IS development5.

References:

ISACA, CISA Review Manual, 27th Edition, 2019, p. 1911

ISACA, CISA Review Manual, 27th Edition, 2019, p. 1942

Value-Added Activity Analysis3

Access Control Rules4

Incident Management Techniques5

DLP technologies are designed to prevent the unauthorized transmission or leakage of sensitive data, such as PII, intellectual property, or financial information, by employees or other insiders. DLP technologies can monitor, detect, and block data in motion, data at rest, and data in use across various channels, such as email, web, cloud, or removable devices. DLP technologies can also help enforce data security policies and compliance requirements.

References

ISACA CISA Review Manual, 27th Edition, page 253

The role of disclosures in risk assessment and mitigation

Mitigate Risk Strategy for Information Management

High employee turnover (A) poses the greatest risk because it leads to knowledge loss, operational disruptions, and potential security risks from departing employees.A constantly changing workforce can also impact compliance, training, and overall IT stability.

Other options:

Lack of customer satisfaction surveys (B)is a business issue but not a critical IT risk.

Aging staff (C)may be a long-term risk but does not have an immediate impact.

Frequent software upgrades (D)can be beneficial if managed correctly.

Spreadsheets, often used in EUC, are prone to manual input errors and formula mistakes. These errors can significantly compromise the accuracy and integrity of financial reporting.

References

ISACA CISA Review Manual (Current Edition) - Chapter on End-User Computing (EUC) risks

Industry Research on Spreadsheet Errors: Multiple studies highlight the prevalence of errors in spreadsheets, especially those used for financial purposes.

Comprehensive and Detailed Step-by-Step Explanation:

To ensure that theBCP aligns with business strategy, aBusiness Impact Analysis (BIA)is the most valuable resource.

Option A (Incorrect):DRP testing resultsshow how wellsystems recover, but they do notestablish strategic alignmentwith business priorities.

Option B (Correct):ABIA identifies critical processes, financial impact, and business priorities, ensuring that theBCP is alignedwith strategic goals.

Option C (Incorrect):Thecorporate risk management policyis broader and does not focus onbusiness continuity priorities.

Option D (Incorrect):KPIs measure performance, but they do notdefine business continuity needs.

The IS auditor should review the organization’s patch management policy to determine the expected frequency and scope of patching, as well as the roles and responsibilities of the patch management team. This will help the auditor assess the severity and impact of the non-compliance, and identify the root cause and possible remediation actions12.

References

1: How to Create a Patch Management Policy: Complete Guide 2: Free Patch Management Policy Template (+Examples)

Comprehensive and Detailed Step-by-Step Explanation:

Open-source solutions provide flexibility and reduce vendor lock-in, allowing organizations to modify, enhance, and support software independently.

Option A (Incorrect):Open-source software often lacksformalizedsupport levels compared to proprietary solutions, which provide structured SLAs (Service Level Agreements).

Option B (Incorrect):While some open-source solutions are user-friendly, implementation complexity depends on the software and required customization.

Option C (Correct):A key benefit of open-source solutions is thefreedom from vendor dependence. Organizations can customize the software, hire independent developers, or switch providers without being locked into a specific vendor's ecosystem.

Option D (Incorrect):Security in open-source software depends on the community and organization managing the solution. Some open-source tools have excellent security, while others may require additional hardening.

The proximity badge incorrectly granting access to restricted areas is the most concerning issue, as it indicates a failure of the access control system to enforce the principle of least privilege and protect the sensitive or critical assets of the organization. The proximity badge should only grant access to the areas that are necessary for the IS auditor to perform the audit fieldwork, and not to any other areas that may contain confidential information, valuable equipment, or hazardous materials. The incorrect access could result in unauthorized disclosure, modification, or destruction of the assets, as well as potential safety or legal issues.

References

ISACA CISA Review Manual, 27th Edition, page 254

Office & Workplace Physical Security Assessment Checklist

Physical Security: Planning, Measures & Examples

The DRP is a set of procedures and resources that enable an organization to restore its critical IT functions and operations in the event of a disaster or disruption. The DRP should be tested regularly to ensure its effectiveness, validity, and readiness. Testing the DRP can help to identify and resolve any gaps, issues, or weaknesses in the plan, as well as to evaluate the performance and capability of the recovery team and resources. If the DRP has not been tested during the past three years, it may not reflect the current IT environment, business requirements, or recovery objectives, and it may fail to meet the expectations and needs of the stakeholders.

References

ISACA CISA Review Manual, 27th Edition, page 255

Disaster Recovery Plan Testing: The Ultimate Checklist

What is a Disaster Recovery Plan (DRP) and How Do You Write One?

Using risk assessments to determine areas to be included in an audit plan is a primary benefit because it helps to prioritize the audit activities based on the level of risk and the potential impact of the audit findings. This way, the audit resources, such as time, staff, and budget, can be allocated more efficiently and effectively to the areas that need the most attention and provide the most value.

References

ISACA CISA Review Manual, 27th Edition, page 256

What is the Purpose of a Risk Assessment?

Mastering the Process of Risk Assessment

Ahardware-based media write blocker(Option A) ensures that forensic investigators can acquire digital evidencewithout altering the original data, maintaining its integrity for legal proceedings.

ISACA CISA Reference:Digital forensics best practices emphasize write-blocking devices to prevent contamination of evidence.

Risk Implication:Without a write blocker, evidence may be tampered with, compromising its admissibility in court.

A digital signature is a mathematical algorithm that validates the authenticity and integrity of a message or document by generating a unique hash of the message or document and encrypting it using the sender’s private key1. The primary reason for using a digital signature is to authenticate the sender of a message, as only the sender has access to their private key and can produce a valid signature2. A digital signature also verifies the integrity of the data, as any modification to the message or document will result in a different hash value and invalidate the signature1. However, a digital signature does not provide availability or confidentiality to the transmission, as it does not prevent denial-of-service attacks or encrypt the entire message or document3.

References

1: Understanding Digital Signatures | CISA

2: Signature Verification | CISA

3: SECFND: Digital Signatures from Skillsoft | NICCS

Deep packet inspection (DPI) is a core capability of data loss prevention (DLP) tools that allows the analysis of the content of data packets in transit. This helps detect the unauthorized movement of sensitive data by examining packet-level details.

Network Traffic Logs (Option A):These provide historical data but do not actively detect data in transit.

Data Inventory (Option C):Useful for identifying where sensitive data resides but not for monitoring its movement.

Proprietary Encryption (Option D):Protects data but does not detect unauthorized transmission.

Internal firewalls are highly effective for isolating Internet of Things (IoT) devices from corporate network traffic. By segmenting the network and restricting communication between devices and the main corporate infrastructure, internal firewalls help mitigate the risk of lateral movement and data breaches caused by compromised IoT devices.

Blockchain Technology (Option B):This is useful for ensuring data integrity but not for network isolation.

Content Filtering Proxy (Option C):This is designed to manage web traffic and does not provide network segmentation.

Zero Trust Architecture (Option D):While Zero Trust provides robust access controls, internal firewalls are more directly suited for traffic isolation.

The most important factor when defining the IS audit scope is to understand the relationship between IT and business risks, as this helps to identify the areas that have the most potential impact on the organization’s objectives, performance, and value. By understanding the IT and business risks, the IS auditor can focus the audit scope on the key processes, systems, controls, and issues that need to be assessed and addressed.

References

ISACA CISA Review Manual, 27th Edition, page 256

Ten Factors to Consider when Setting the Scope of an Internal Audit

What Is an Audit Scope? | Auditing Basics | KirkpatrickPrice

Comprehensive and Detailed Step-by-Step Explanation:

When an employee exploits avulnerability, the most appropriate audit is aforensic audit, as it focuses oninvestigating and documenting security incidentsfor legal or disciplinary action.

Option A (Incorrect):Acompliance auditensures adherence to policies but does not investigate incidents in detail.

Option B (Incorrect):Application security testinghelps identify vulnerabilities but does not addressemployee misuse.

Option C (Correct):Aforensic auditgathersdigital evidence, determines how the exploit occurred, and ensures legal compliance in the investigation.

Option D (Incorrect):Penetration testingidentifies weaknesses but does notanalyze past incidents.

Comprehensive and Detailed Step-by-Step Explanation:

Data collection and obtaining consentis themost critical regulatory requirementwhen using customer data for AI training, especially under laws likeGDPR, CCPA, and ISO 27701.

Collection of Data and Obtaining Consent (Correct Answer – C)

Ensures compliance withprivacy lawsthat require explicit customer consent.

Example:UnderGDPR, companies mustinform usershow their data will be used and allow them toopt out.

AI Algorithm Accuracy (Incorrect – A)

Important formodel performancebutnot a primary legal concern.

Ethical Use of Computing Resources (Incorrect – B)

Ethical considerations are valuable butnot a regulatory priority.

Continuous Monitoring of AI (Incorrect – D)

Ensuresperformance, butregulatory compliance focuses on data privacy.

References:

ISACA CISA Review Manual

GDPR & CCPA Compliance Guidelines

ISO 27701 (Privacy Information Management System)

Comprehensive and Detailed Step-by-Step Explanation:

AnIT strategymust bealigned with business objectives, not solely based onmarket trends.

Strategic IT Goals Derived Solely from Market Trends (Correct Answer – D)

IT strategy should supportorganizational goals, not justfollow industry trends.

Example:A company investing inAIjust because it’strendy, without considering business needs.

Previous Year’s IT Goals Not Achieved (Incorrect – A)

A concern, butdoes not indicate a fundamental strategy flaw.

Target Architecture Defined at a Technical Level (Incorrect – B)

Technical details are important for implementation.

Financial Estimates Included (Incorrect – C)

Cost transparency is agood practice.

References:

ISACA CISA Review Manual

COBIT 2019 (IT Governance)

An organization's IT risk appetite should be primarily driven by its strategic objectives. The risk appetite defines the amount and type of risk the organization is willing to pursue or retain to achieve its goals. Aligning risk appetite with strategic objectives ensures that risk-taking is consistent with the organization's mission and vision. While ROI, cost of controls, and the likelihood of risk events are important considerations in risk management, they are factors evaluated within the context of the overarching strategic objectives.

References:

ISACA CISA Review Manual, 28th Edition, Chapter 2: Governance and Management of IT.

 Data analytics can be used to compare data from different sources and identify any discrepancies or anomalies. In this case, comparing a population of loans input in the origination system to loans booked on the servicing system can help detect any errors or frauds in the loan origination process. The other options are not examples of data analytics, but rather controls for data integrity, reconciliation, and error handling. References: CISA Review Manual (Digital Version), Chapter 3, Section 3.3.2

The best recommendation to facilitate compliance with the regulation that requires organizations to report significant security incidents to the regulator within 24 hours of identification is to include the requirement in the incident management response plan. An incident management response plan is a document that defines the roles, responsibilities, procedures, and tools for managing security incidents effectively and efficiently. Including the requirement in the incident management response plan can help ensure that security incidents are identified, classified, reported, and escalated in accordance with the regulation. The other options are not as effective as including the requirement in the incident management response plan, as they do not address all aspects of incident management or compliance. Establishing key performance indicators (KPIs) for timely identification of security incidents is a monitoring technique that can help measure and improve the performance of incident management processes, but it does not ensure compliance with the regulation. Enhancing the alert functionality of the intrusion detection system (IDS) is a technical control that can help detect and notify security incidents faster, but it does not ensure compliance with the regulation. Engaging an external security incident response expert for incident handling is a contingency measure that can help augment the organization’s internal capabilities and resources for managing security incidents, but it does not ensure compliance with the regulation. References: CISA Review Manual (Digital Version), Chapter 4, Section 4.2.2

The most important prerequisite for the protection of physical information assets in a data center is a complete and accurate list of information assets that have been deployed. Information assets are any data, devices, systems, or software that have value for the organization and need to be protected from unauthorized access, use, disclosure, modification, or destruction4. A data center is a facility that houses various information assets such as servers, storage devices, network equipment, etc., that support the organization’s IT operations and services5. A complete and accurate list of information assets that have been deployed in a data center can help to identify and classify the assets based on their importance, sensitivity, or criticality for the organization. This can help to determine the appropriate level of protection and security measures that need to be applied to each asset. A complete and accurate list of information assets can also help to track and monitor the location, status, ownership, usage, configuration, maintenance, etc., of each asset. This can help to prevent or detect any unauthorized or inappropriate changes or movements of assets that may compromise their security or integrity. Segregation of duties between staff ordering and staff receiving information assets, availability and testing of onsite backup generators, and knowledge of the IT staff regarding data protection requirements are also important prerequisites for the protection of physical information assets in a data center, but not as important as a complete and accurate list of information assets that have been deployed. These factors are more related to the implementation and maintenance of security controls and procedures that depend on having a complete and accurate list of information assets as a starting point. References: ISACA CISA Review Manual 27th Edition, page 308

 The IS auditor’s best course of action in this situation is to determine whether the alternative controls sufficiently mitigate the risk. Alternative controls are different from those originally discussed and agreed with the audit function, but they may still achieve the same objective of addressing the audit issue or reducing the risk to an acceptable level. The IS auditor should evaluate whether the alternative controls are appropriate, effective, and sustainable before closing the audit finding or escalating it to senior management. The other options are not appropriate for resolving this situation, as they do not consider whether the alternative controls are adequate or reasonable. Re-prioritizing the original issue as high risk and escalating to senior management is a drastic step that may undermine the relationship between the auditor and management, and it should be done only after exhausting other means of resolving the issue. Scheduling a follow-up audit in the next audit cycle is unnecessary, as follow-up activities should be performed as soon as possible after management has implemented corrective actions. Postponing follow-up activities and escalating the alternative controls to senior audit management is premature, as follow-up activities should be completed before reporting any findings or recommendations to senior audit management. References: CISA Review Manual (Digital Version), Chapter 2, Section 2.4

 An external assessment of network vulnerability is a process of identifying and evaluating the weaknesses and risks that affect the security and availability of a network froman outsider’s perspective. The most important factor to verify during this process is the completeness of network asset inventory, which is a list of all the devices, systems, and software that are connected to or part of the network. A complete and accurate network asset inventory can help identify the scope and boundaries of the network, the potential attack vectors and entry points, the critical assets and dependencies, and the existing security controls and gaps. Without a complete network asset inventory, an external assessment of network vulnerability may miss some important assets or vulnerabilities, leading to inaccurate or incomplete results and recommendations.

References:

1 explains what is an external vulnerability scan and why it is important to have a complete network asset inventory.

2 provides a guide on how to conduct a full network vulnerability assessment and emphasizes the importance of knowing the network assets.

3 compares internal and external vulnerability scanning and highlights the need for a comprehensive network asset inventory for both types.

 A top-down maturity model process is a method of assessing and improving the maturity level of a process or a set of processes within an organization. A maturity level is a measure of how well-defined, controlled, measured, and optimized a process is. A top-down maturity model process starts with defining the desired maturity level and then identifying the gaps and improvement opportunities for each process. This helps prioritize the processes that need the most attention and improvement. Therefore, a result of utilizing a top-down maturity model process is identification of processes with the most improvement opportunities.

A means of benchmarking the effectiveness of similar processes with peers, a means of comparing the effectiveness of other processes within the enterprise, and identification of older, more established processes to ensure timely review are not results of utilizing a top-down maturity model process. These are possible benefits or objectives of using other types of maturity models or assessment methods, but they are not specific to a top-down approach.

 The greatest concern associated with a high number of IT policy exceptions approved by management is that the exceptions may result in noncompliance. IT policy exceptions are deviations from the established IT policies that are granted by management for specific reasons and circumstances. However, if there are too many exceptions, it may indicate that the IT policies are not aligned with the business needs, regulatory requirements, or best practices. This may expose the organization to legal, contractual, or reputational risks due to noncompliance. The other options are not as concerning as noncompliance, as they do not have the same potential impact or consequences. The exceptions are likely to continue indefinitely is a possible outcome of a high number of exceptions, but it does notnecessarily imply a negative effect on the organization. The exceptions may elevate the level of operational risk is a valid concern, but it can be mitigated by implementing compensating controls or monitoring mechanisms. The exceptions may negatively impact process efficiency is a minor concern, as it does not affect the effectiveness or reliability of the IT processes. References: CISA Review Manual (Digital Version), Chapter 3, Section 3.2

 The metric that best indicates the effectiveness of awareness training is the number of users reporting receipt of the email to the information security team. This shows that the users are able to recognize and report a phishing email, which is a common social engineering technique used by attackers to trick users into revealing sensitive information or installing malicious software. The other metrics do not demonstrate a high level of security awareness, as they either ignore, follow, or forward the phishing email, which could expose the organization to potential risks. References: CISA Review Manual, 27th Edition, page 326

Requirements analysis should be the best thing to compare against the business case when determining whether a project in the design phase will meet organizational objectives, because it defines the functional and non-functional specifications of the project deliverables that should satisfy the business needs and expectations. Requirements analysis can help evaluate whether the project design is aligned with the business case and whether it can achieve the desired outcomes and benefits. Implementation plan, project budget provisions, and project plan are also important aspects of a project in the design phase, but they are not as relevant asrequirements analysisfor comparing against the business case. References: CISA Review Manual (Digital Version), Chapter 4, Section 4.2.1

The best method to prevent wire transfer fraud by bank employees is system-enforced dual control. System-enforced dual control is a segregation of duties control that requires two or more individuals to perform or authorize a transaction or activity using a system that enforces this requirement. System-enforced dual control can prevent wire transfer fraud by requiring independent verification and approval of payment requests, amounts, and recipients by different bank employees using a system that does not allow any single employee to complete the transaction alone. The other options are not as effective as system-enforced dual control in preventing wire transfer fraud, as they do not involve independent checks or approvals using a system. Independent reconciliation is a detective control that can help compare and confirm payment records with bank statements, but it does not prevent wire transfer fraud from occurring. Re-keying of wire dollar amounts is an input control that can help detect any errors or discrepancies in payment amounts, but it does not prevent wire transfer fraud from occurring. Two-factor authentication control is an access control that can help verify the identity and authorization of bank employees, but it does not prevent wire transfer fraud from occurring. References: CISA Review Manual (DigitalVersion), Chapter 3, Section 3.2

The IS auditor’s best recommendation is to ensure that programmers cannot access code after the completion of program edits. This is because programmers who have access to code after editing may introduce unauthorized or malicious changes that could compromise the security, functionality, or performance of the application. By restricting access to code after editing, the organization can ensurethat only authorized and tested code is released into production, and prevent any tampering or reoccurrence of the same issue.

References:

1 discusses the importance of controlling access to code after editing and testing, and provides some best practices for doing so.

2 explains how programmers can introduce malicious code into applications, and how to prevent and detect such attacks.

3 describes the role of IS auditors in reviewing and assessing the security and quality of application code.

Network topology diagrams are the most important for an IS auditor to review when evaluating the design of controls related to network monitoring, because they show how the network components are connected and configured, and what security measures are in place to protect the network from unauthorized access or attacks. Incident monitoring logs, the ISP service level agreement, and reports of network traffic analysis are useful for evaluating the effectiveness and performance of network monitoring, but not the design of controls. References: CISA Review Manual (Digital Version), Chapter 5, Section 5.3.3

 If an IS auditor finds that management did not address a prior period audit finding, the next course of action should be to interview management to determine why the finding was not addressed, as this would help to understand the root cause, the impact, and the risk level of the issue. Noting the exception in a new report, recommending alternative solutions, or conducting a risk assessment arepossible subsequent steps, but they should not precede interviewing management. References: CISA Review Manual (Digital Version), Chapter 1, Section 1.6

 An employee is induced to reveal confidential IP addresses and passwords by answering questions over the phone. This is a social engineering attack method that exploits the trust or curiosity of the employee to obtain sensitive information that can be used to access or compromise the network. According to the web search results, social engineering is a technique that uses psychological manipulationto trick users into making security mistakes or giving away sensitive information1. Phishing, whaling, baiting, and pretexting are some of the common forms of social engineering attacks2. Social engineering attacks are often more effective and profitable than purely technical attacks, as they rely on human error rather than system vulnerabilities

 The primary concern when negotiating a contract for a hot site is the availability of the site in the event of multiple disaster declarations. A hot site is a fully equipped alternative facility that can be used to resume business operations in the event of a disaster. However, if multiple clients of the hot site provider declare a disaster at the same time, there may be a shortage of resources or capacity to accommodate all of them. Therefore, the contract should specify the terms and conditions for ensuring the availability and priority of the hot site for the organization. The other options are not as important as availability, as they do not affect the ability to use the hot site in a disaster situation. Coordination with the site staff in the event of multiple disaster declarations is a logistical issue that can be resolved by communication and planning. Reciprocal agreements with other organizations are alternative arrangements that can be used to share resources or facilities in a disaster, but they may not be asreliable or suitable as a hot site. Complete testing of the recovery plan is a good practice that can help validate and improve the effectiveness of the recovery plan, but it is not a concern for negotiating a contract for a hot site. References: CISA Review Manual (Digital Version), Chapter 4, Section 4.2.3

 During an audit of a reciprocal disaster recovery agreement between two companies, the IS auditor would be most concerned with the allocation of resources during an emergency. A reciprocal disaster recovery agreement is an arrangement by which one organization agrees to use another’s resources in the event of a business continuity event or incident. The IS auditor would need to ensure that both parties have clearly defined their roles and responsibilities, their resource requirements, their priority levels, their communication channels, and their escalation procedures in case of a disaster. The IS auditor would also need to verify that both parties have tested their agreement and have updated it regularly to reflect any changes in their business environments. The frequency of system testing is not as critical as the allocation of resources during an emergency, because system testing can be performed periodically or on demand, while resource allocation is a dynamic and complex process that requirescareful planning and coordination. The differences in IS policies and procedures are not as critical as the allocation of resources during an emergency, because both parties can agree on common standards and protocols for their disaster recovery operations, or they can adapt their policies and procedures to suit each other’s needs. The maintenance of hardware and software compatibility is not as critical as the allocation of resources during an emergency, because both parties can use compatible or interoperable systems, or they can use virtualization or cloud computing technologies to overcome any compatibility issues. References: ISACACISA Review Manual 27th Edition, page 281

 The IS auditor’s next course of action after finding that firewalls are outdated and not supported by vendors should be to determine the risk of not replacing the firewall. Outdated firewalls may have known vulnerabilities that can be exploited by attackers to bypass security controls and access the network. They may also lack compatibility with newer technologies or standards that are required for optimal network performance and protection. Not replacing the firewall could expose the organization to various threats, such as data breaches, denial-of-service attacks, malware infections, or regulatory non-compliance. The IS auditor should assess the likelihood and impact of these threats and quantify the risk level for management to make informed decisions.

 The best recommendation to reduce the risk of data leakage from employee use of social networking sites for business purposes is to provide education and guidelines to employees on use of social networking sites. Education and guidelines can help employees understand the benefits and risks of using social media for business purposes, such as enhancing brand awareness, engaging with customers, or sharing industry insights. They can also inform employees about the dos and don’ts of social media etiquette, such as respecting privacy, protecting intellectual property, avoiding conflicts of interest, or complying with legal obligations. Education and guidelines can also raise awareness of potential data leakage scenarios, such as phishing attacks, malicious links, fake profiles, or oversharing sensitive information, and provide tips on how to prevent or respond to them. 

 An IS auditor would be most concerned if process ownership has not been established for the information asset management process, as this would indicate a lack of accountability, responsibility, and authority for managing the assets throughout their lifecycle. The process owner should also ensure that the process is aligned with the organization’s objectives, policies, and standards. The process should require specifying the physicallocations of assets, include asset review, and identify asset value, but these are less critical than establishing process ownership. References: CISA Review Manual (Digital Version), Chapter 3, Section 3.3

 User requirements are statements that describe what the users expect from the software system in terms of functionality, quality, and usability. They are essential inputs for the software development process, as they guide the design, implementation, testing, and deployment of the system. Therefore, an IS auditor’s greatest concern when reviewing the early stages of a software development project would be the lack of acceptance criteria behind user requirements. Acceptance criteria are measurable conditions that define when a user requirement is met or satisfied. They help ensure that the user requirements are clear, complete, consistent, testable, and verifiable. Without acceptance criteria, it would be difficult to evaluate whether the system meets the user expectations and delivers value to the organization. Technical documentation, such as program code, is usually produced in later stages of the software development process. Completion of all requirements at the end of each sprint is not mandatory in agile software development methods, as long as there is a prioritized backlog of requirements that can be delivered incrementally. A detailed unit and system test plan is also important for ensuring software quality, but it depends on well-defined user requirements andacceptance criteria. References: Information Systems Acquisition, Development & Implementation, CISA ReviewManual (Digital Version)

 A post-implementation review is a process of evaluating the outcome and benefits of a project or a system after it has been implemented. The main purpose of a post-implementation review is to determine to what extent the business requirements are being met by the new system. Therefore, the most likely aspect to be assessed is the results of line processing, which refers to the actual performance and functionality of the system in the operational environment.

 An organization’s audit charter primarily describes the auditors’ authority to conduct audits. The audit charter is a formal document that defines the purpose, scope, responsibilities, and reporting relationships of the internal audit function. It also establishes the auditors’ right of access to information, records, personnel, and physical properties relevant to their work. The audit charter provides the basis for the auditors’ independence and accountability to the governing body and senior management. 

The greatest indicator that the cybersecurity policy may need to be revised is a significant increase in approved exceptions. This implies that the policy is not aligned with the current business needs and risks, and that it may be too restrictive or outdated. The other options are not necessarily indicators of a need for policy revision, as they may be due to other factors such as changes in the externalenvironment, audit scope or methodology. References: CISA Review Manual (Digital Version), Chapter 5, Section 5.21

 The organization is primarily responsible for the security configurations of the deployed application’s operating system when migrating its HR application to an Infrastructure as a Service (IaaS) model in a private cloud. This is because in an IaaS model, the cloud provider is responsible for the security of the underlying infrastructure that they lease to their customers, such as servers, storage, and networks, while the customer is responsible for the security of the areas of the cloud infrastructure over which they have control, such as operating systems, middleware, and applications. Therefore, the organization needs to ensure that the operating system is properly configured, patched, hardened, and monitored to protect the HR application from unauthorized access or malicious attacks.

The other options are not primarily responsible for the security configurations of the deployed application’s operating system. The cloud provider’s external auditor is not responsible for any securityconfigurations, but rather for verifying and reporting on the cloud provider’s compliance with relevant standards and regulations. The cloud provider is responsible for the security of the underlying infrastructure, but not for the operating system or any software installed on it by the customer. The operating system vendor is responsible for providing updates and patches for the operating system, but not for configuring or securing it according to the customer’s needs.

References:

11: What Is IaaS (Infrastructure As A Service)? - Forbes

12: What is Shared Responsibility Model? - Check Point Software

13: Who Is Responsible for Cloud Security? - Security Intelligence

 Data classification is the process of organizing and labeling data into categories based on file type, contents, and other metadata. Data classification helps organizations answer important questions about their data that inform how they mitigate risk and manage data governance policies. Data classification also enables appropriate protection measures, and efficient search, retrieval and use of each data category12.

While evaluating the data classification process of an organization, an IS auditor’s primary focus should be on whether data is correctly classified. This means that the data is assigned to the appropriate classification level based on its sensitivity, importance, integrity, availability, compliance requirements, and business value. Correct data classification ensures that the data is protected according to its risk level, and that the organization can comply with relevant laws and regulations that apply to different types of data3.

The other three options are not the primary focus of an IS auditor while evaluating the data classification process, although they may be relevant or useful for certain aspects of data management.Data classifications are automated means that the organization uses software tools or algorithms to analyze and label data based on predefined rules or criteria. This can improve the efficiency and consistency of data classification, but it does not guarantee that the data is correctly classified. The IS auditor still needs to verify the accuracy and validity of the automated classifications, and check for any errors or anomalies.

A data dictionary is maintained means that the organization keeps a record of the definitions, formats, sources, and relationships of the data elements in its systems or databases. This can enhance the understanding and usability of the data, but it does not ensure that the data is correctly classified. The IS auditor still needs to examine the content and context of the data, and compare it with the classification criteria and policies.

Data retention requirements are clearly defined means that the organization specifies how long it will keep different types of data, and when it will delete or archive them. This can help reduce storage costs, improve performance, and comply with legal obligations, but it does not ensure that the data is correctly classified. The IS auditor still needs to assess whether the data is stored and protected according to its classification level, and whether the retention periods are appropriate for each type of data.

Therefore, data is correctly classified is the best answer.

References:

Data Classification: The Basics and a 6-Step Checklist - NetApp

What is Data Classification? Guidelines and Process -Varonis

Data Classification and Handling Procedures Guide

 The answer B is correct because data minimization is the most important design consideration to mitigate the risk of exposing data through application programming interface (API) queries. An API is a set of rules and protocols that allows different software components or systems to communicate and exchange data. API queries are requests sent by users or applications to an API to retrieve or manipulate data. For example, a user may query an API to get information about a product, a service, or a location.

Data minimization is the principle of collecting, processing, and storing only the minimum amount of data that are necessary for a specific purpose. Data minimization can help to reduce the risk of exposing data through API queries by limiting the amount and type of data that are available oraccessible through the API. Data minimization can also help to protect the privacy and security of the data subjects and the data providers, as well as to comply with the relevant laws and regulations.

Some of the benefits of data minimization for API design are:

Privacy: Data minimization can enhance the privacy of the data subjects by ensuring that only the data that are relevant and essential for the API purpose are collected and processed. This can prevent unnecessary or excessive collection or disclosure of personal or sensitive data, such as names, addresses, phone numbers, email addresses, etc. Data minimization can also help to comply with the privacy laws and regulations that require data protection by design and by default, such as GDPR (General Data Protection Regulation) or CCPA (California Consumer Privacy Act).

Security: Data minimization can improve the security of the data providers by reducing the attack surface and the potential damage of a data breach. If less data are stored or transmitted through the API, there are fewer opportunities for attackers to access or compromise the data. Data minimization can also help to implement security controls such as encryption, access control, or logging more efficiently and effectively.

Performance: Data minimization can increase the performance of the API by optimizing the use of resources and bandwidth. If less data are stored or transmitted through the API, there are less storage space and network traffic required. Data minimization can also help to improve the speed and reliability of the API responses.

Some of the techniques for data minimization in API design are:

Define clear and specific purposes for the API and document them in the API specification or documentation.

Identify and classify the data that are needed for each purpose and assign them appropriate labels or levels, such as public, internal, confidential, or restricted.

Implement filters or parameters in the API queries that allow users or applications to specify or limit the data fields or attributes they want to retrieve or manipulate.

Use pagination or throttling in the API responses that limit the number or size of data items returned per request.

Use anonymization or pseudonymization techniques that remove or replace any identifying information from the data before sending them through the API.

Some examples of web resources that discuss data minimization in API design are:

Data Minimization in Web APIs - World Wide Web Consortium (W3C)

Adding Privacy by Design in Secure Application Development

Chung-ju/Data-Minimization: A repository of related papers. - GitHub

Asking management why the regulatory changes have not been included is the first thing that an IS auditor should do during the planning stage of a compliance audit. An IS auditor should inquire about the reasons for not updating the inventory of compliance requirements with recent regulatory changes related to managing data risk. This will help the IS auditor to understand whether there is a gap in awareness, communication, or implementation of compliance obligations within the organization. The other options are not the first things that an IS auditor should do, but rather possible subsequent actions that may depend on management’s response. References:

CISA Review Manual (Digital Version), Chapter 2, Section 2.31

CISA Review Questions, Answers & Explanations Database, Question ID 214

The evidence collected during a digital forensic investigation would not be admissible in court if the logs failed to identify the person handling the evidence. This would violate the chain of custody principle, which requires that the evidence be properly documented, secured, and tracked throughout the investigation process. The chain of custody ensures that the evidence is authentic, reliable, andtrustworthy, and that it has not been tampered with or altered. The person who collected the evidence, whether qualified or not, is not relevant to the admissibility of the evidence, as long as they followed the proper procedures and protocols. The evidence collected by the internal forensics team can be admissible in court, as long as they are independent, objective, and competent. The evidence does not need to be fully backed up using a cloud-based solution prior to the trial, as long as it is preserved and protected from damage or loss. References: ISACA Journal Article: Digital Forensics: Chain of Custody

 Providing security certification for a new system should include an evaluation of the configuration management practices prior to the system’s implementation. Configuration management is a process that ensures that the system’s components are identified, controlled, and tracked throughout the system’s lifecycle. Configuration management helps to maintain the security and integrity of the system by preventing unauthorized or unintended changes. End-user authorization to use the system in production is not part of security certification, but rather a post-implementation activity that grants access rights to authorized users. External audit sign-off on financial controls is not part of security certification, but rather a verification activity that ensures that the system complies with financial reporting standards. Testing of the system within the production environment is not part of securitycertification, but rather a validation activity that ensures that the system meets the functional and performance requirements. References:

CISA Review Manual, 27th Edition, pages 449-4501

CISA Review Questions, Answers& Explanations Database, Question ID: 2572

The most important input during the planning phase for an audit on the implementation of a bring your own device (BYOD) program is policies including BYOD acceptable user statements. Policies are documents that define the organization’s objectives, requirements, expectations, and responsibilities regarding a specific topic or area. BYOD policies should include acceptable user statements that specify what types of personal devices are allowed to connect to the corporate network, what security measures must be implemented on those devices, what data can be accessed or stored on those devices, what actions must be taken in case of device loss or theft, and what consequences will apply for non-compliance. Policies including BYOD acceptable user statements can provide an IS auditor with a clearunderstanding of the scope, criteria, and objectivesof the BYOD program audit. Findings from prior audits, results of a risk assessment, and an inventory of personal devices to be connected to the corporate network are also useful inputs for planning a BYOD program audit, but they are not as important as policies including BYOD acceptable user statements. References: ISACA CISA Review Manual 27th Edition, page 381.

The most important consideration for an IS auditor when assessing the adequacy of an organization’s information security policy is its alignment with the business objectives. The information security policy is a high-level document that defines the organization’s vision, goals, principles, and responsibilities for protecting its information assets. The information security policy should support and enable the achievement of the business objectives, such as increasing customer satisfaction, enhancing competitive advantage, or complying with legal requirements. The information security policy should also be consistent with other relevant policies, standards, and frameworks that guide the organization’s governance, risk management, and compliance activities. 

An application’s audit trail is a record of all actions or events that occur within or affect an application, such as user activities, system operations, data changes, errors, exceptions, etc. An audit trail can provide evidence and accountability for an application’s functionality and performance, and support auditing, monitoring, troubleshooting, and investigation purposes. An IS auditor should ensure that an application’s audit trail has adequate security, which means that it is protected from unauthorized access, modification, deletion, or disclosure. Adequate security can help ensure that an audit trail maintains its integrity, reliability, and availability, and prevents tampering or manipulation by attackers or insiders who want to hide their tracks or evidence of their actions. Logs all database records is a possible feature of an application’s audit trail, but it is not the most important thing for an IS auditor to ensure, as logging all database records may not be necessary or feasible for some applications, and may generate excessive or irrelevant data that can affect the storage or analysis of the audit trail. Is accessible online is a possible feature of an application’s audit trail, but it is not the most important thing for an IS auditor to ensure, as online accessibility may not be required or desirable for some applications, and may introduce security or privacy risks for the audit trail. Does not impact operational efficiency is a desirable outcome of an application’s audit trail, but it is not the most important thing for an IS auditor to ensure, as operational efficiency may not be the primary objective or concern of anapplication’s audit trail, and may depend on other factors or trade-offs such as storage capacity, performance speed, or data quality. 

 A staging environment is a replica of the production environment that is used to test and verify software before deploying it to production. A staging environment is most likely to have the same software version as production, as it mimics the real-world conditions and configurations that will be encountered in production. A testing environment is a separate environment that is used to perform various types of testing on software, such as functional testing, performance testing, security testing, etc. A testing environment may not have the same software version as production, as it may undergo frequent changes or updates based on testing results or feedback. An integration environment is a separate environment that is used to combine and test software components or modules from different developers or sources, to ensure that they work together as expected. An integration environment may not have the same software version as production, as it may involve different versions or branches of software from different sources. A development environment is a separate environment that is used by developers to create and modify software code. A development environment may not have the same software version as production, as it may contain unfinished or untested code that has not been released yet.

The major advantage of automating internal controls is to efficiently test large volumes of data, because automated controls can perform repetitive tasks faster, more accurately, and more consistently than manual controls. Automated controls can also provide audit trails and exception reports that facilitate the monitoring and evaluationof the control effectiveness12. Reviewing large value transactions, identifying transactions with no segregation of duties, and performing analytical reviews are possible benefits of automating internal controls, but not the major advantage. References: 1: CISA Review Manual (Digital Version), Chapter 5, Section 5.2.2 2: CISA Online Review Course, Module 5, Lesson 2

The best method to delete sensitive information from storage media that will be reused is multiple overwriting. This is because multiple overwriting ensures that the data is practically unrecoverable by any software or hardware means. Multiple overwriting involves writing 0s, 1s, or random patterns onto all sectors of the storage media several times, making the original data unreadable or inaccessible. There arevarious software programs available that can securely delete files from storage media using multiple overwriting techniques1.

Crypto-shredding is not the best method because it only works for encrypted data. Crypto-shredding involves deleting the encryption key used to encrypt the data, making the data unreadable and unrecoverable. However, if the data is not encrypted, crypto-shredding will not erase it2.

Reformatting and re-partitioning are not the best methods because they do not erase the data completely. Reformatting and re-partitioning only delete the file system structures and pointers that make the data accessible, but thedata itself remains on the storage media and can be recovered using data recovery software

A disaster recovery plan (DRP) is a set of procedures and resources that enable an organization to restore its critical operations, data, and applications in the event of a disaster1. A DRP should be aligned with the organization’s business continuity plan (BCP), which defines the strategies and objectives for maintaining business functions during and after a disaster1.

To ensure that a DRP is effective, it should betested regularly and thoroughly to identify and resolve any issues or gaps that might hinder itsexecution2345. Testing a DRP can help evaluate its feasibility, validity, reliability, and compatibility with the organization’s environment and needs4. Testing can also help prepare the staff, stakeholders, and vendors involved in the DRP for their roles and responsibilities during a disaster3.

There are different methods and levels of testing a DRP, depending on the scope, complexity, and objectives of the test4. Some of the common testing methods are:

Walkthrough testing: This is a step-by-step review of the DRP by the disaster recovery team and relevant stakeholders. It aims to verify the completeness and accuracy of the plan, as well as to clarify any doubts or questions among the participants45.

Simulation testing: This is a mock exercise of the DRP in a simulated disaster scenario. It aims to assess the readiness and effectiveness of the plan, as well as to identify any challenges or weaknesses that might arise during a real disaster45.

Checklist testing: This is a verification of the availability and functionality of the resources and equipment required for the DRP. It aims toensure that the backup systems, data, anddocumentation are accessible and up-to-date45.

Full interruption testing: This is the most realistic and rigorous method of testing a DRP. It involves shutting down the primary site and activating the backup site for a certain period of time. It aims to measure the actual impact andperformance of the DRP under real conditions45.

Parallel testing: This is a less disruptive method of testing a DRP. It involves running the backup site in parallel with the primary site without affecting the normal operations. It aims to compare and validate the results and outputs of both sites45.

Amongthese methods, full interruption testing would best demonstrate that an effectiveDRP is in place, as it provides the most accurate and comprehensive evaluation ofthe plan’s capabilities and limitations4. Full interruption testing can reveal any hidden or unforeseen issues or risks that might affect the recovery process, such as data loss, system failure, compatibility problems, or human errors4. Full interruption testing can also verify that the backup site can support the critical operations and services ofthe organization without compromising its quality or security4.

However, full interruption testing also has some drawbacks, such as being costly, time-consuming, risky, and disruptive to the normaloperations4. Therefore, it should be planned carefullyand conducted periodically with proper coordination and communication among all parties involved4.

The other options are not as effective as full interruption testing in demonstrating that an effective DRP is in place. Frequent testing of backups is only one aspect of checklist testing, which does not cover other components or scenarios of the DRP4. Annual walk-through testing is only atheoretical review of the DRP, which does not test its practical implementation or outcomes4. Periodic risk assessment is only a preparatory step for developing or updating the DRP, which does not test its functionality or performance4.

References: 2: Best Practices For Disaster Recovery Testing | Snyk 3: Disaster Recovery Plan (DR) Testing — Methods and Must-haves -US Signal 4: Disaster Recovery Testing: What You Need toKnow - Enterprise Storage Forum 5: Disaster Recovery Testing Best Practices - MSP360 1: How to Test a Disaster Recovery Plan - Abacus

 The primary basis for selecting which IS audits to perform in the coming year is the organizational risk assessment. An organizational risk assessment is a formal process for identifying, evaluating, and controlling risks that may affect the achievement of the organization’sgoals and objectives3. An organizational risk assessment can help IS auditors prioritize and plan their audit activities based on the level of risk exposure and impact of each area or process within the organization. An organizational risk assessment can also help IS auditors align their audit objectives and criteria with the organization’s strategy and performance indicators. Senior management’s request, prior year’s audit findings, andprevious audit coverage and scope are also possible bases for selecting which IS audits to perform in the coming year, but not as primary as the organizational risk assessment. These factors are more secondary or supplementary sources of information that can help IS auditors refine or adjust their audit plan based on specific needs or issues identified by management or previous audits. However, thesefactors may not reflect the current or emerging risks that may affect the organization’s operations or performance. References: ISACA CISA Review Manual 27th Edition, page 295

The primary role of an audit reviewer with regard to evidence is to ensure that evidence is sufficient to support audit conclusions. Evidence is the information obtained by the auditor to provide a reasonable basis for the audit opinion or findings. Evidence should be sufficient, reliable, relevant, and useful to support the audit objectives and criteria. The audit reviewer should evaluate the quality and quantity of evidence collected by the auditor and determine if it is adequate to draw valid conclusions and recommendations. Ensuring unauthorized individuals do not tamper with evidence after it has been captured is a role of the auditor, not the audit reviewer. The auditor is responsible for safeguarding the evidence from loss, damage, or alteration during the audit process. The auditor should also document the source, date, and method of obtaining the evidence, as well as any limitations or restrictions on its use or disclosure. Ensuring appropriate statistical sampling methods were used is a role of the auditor, not the audit reviewer. The auditor is responsible for selecting an appropriate sampling method and technique that can provide sufficient evidence to achieve the audit objectives and criteria. The auditor should also document the sampling plan, population, sample size, selection method, evaluation method, and results. Ensuring evidence is labeled to show it was obtained from an approved source is a role of the auditor, not the audit reviewer. The auditor is responsible for labeling the evidence to indicate its origin, nature, and ownership. The auditor should also ensure that the evidence is obtained from reliable and credible sources that can be verified and corroborated. References: ISACA CISA Review Manual 27th Edition, page 295

 Coding standards provide field naming conventions, which are rules for naming variables, constants, functions, classes, and other elements in a program. Coding standards help to ensure consistency, readability, maintainability, and portability of code. Program documentation, access control tables, and data flow diagrams are not part of coding standards. References: CISA Review Manual (Digital Version), Chapter 4, Section 4.3.1

 The most important task before implementing any associated email controls to prevent sensitive information from being emailed outside the organization by employees is to develop an information classification scheme. An information classification scheme is a framework that defines the categories and levels of sensitivity for different types of information, such as public, internal, confidential, or secret. An information classification scheme can help implement email controls by providing criteria and guidelines for identifying, labeling, handling, and protecting sensitive information in email attachments. The other options are not as important as developing an information classification scheme, as they do not address the root cause of the problem or provide the same benefits. Requiring all employees to sign nondisclosure agreements (NDAs) is a legal control that can help deter or penalize employees from disclosing sensitive information, but it does not prevent them from emailing it outside the organization. Developing an acceptable use policy for end-user computing (EUC) is a governance control that can help define and communicate the rules and expectations for using IT resources, such as email, but it does not prevent employees from emailing sensitive information outside the organization. Providing notification to employees about possible email monitoring is a transparency control that can help inform and warn employees about the potential consequences of emailing sensitive information outside the organization, but it does not prevent them from doing so. References: CISA Review Manual (Digital Version), Chapter 5, Section 5.3.2

 A weakness in change management is the most likely cause of an incorrect version of source code being amended by a development team. Change management is the process of controlling and documenting changes to IT systems and software. It ensures that changes are authorized, tested, and implemented in a controlled manner. If change management is weak, there is a risk of using outdated or incorrect versions of source code, which can lead to errors, defects, or security vulnerabilities in the software. 

The most important thing for an IS auditor to review when evaluating the accuracy of a spreadsheet that contains several macros is the formulas within macros. Macros are sequences of commands or instructions that can automate tasks or calculations in a spreadsheet. Formulas are expressions that perform calculations on values or data in a spreadsheet. The accuracy of a spreadsheet depends largely on whether the formulas within macros are correct, consistent, and complete. The IS auditor should review the formulas within macros to verify that they produce the expected results and do not contain any errors or inconsistencies. The other options are not as important as formulas within macros, as they do not directly affect the accuracy of a spreadsheet. Encryption of the spreadsheet is a security control that can protect the confidentiality and integrity of the spreadsheet, but it does not ensure its accuracy. Version history is a document control feature that can track and manage changes to the spreadsheet, but it does not verify its accuracy. Reconciliation of key calculations is a validation technique that can compare and confirm the results of calculations with other sources, but it does not evaluate the accuracy of formulas within macros. References: CISA Review Manual (Digital Version), Chapter 3, Section 3.2

Understanding the business process is the most important factor for an effective control self-assessment (CSA) program. A CSA program is a technique that allows managers and work teams directly involved in business units, functions or processes to participate in assessing the organization’s risk management and control processes1. A CSA program can help identify risks and potential exposures to achieving strategic business objectives, evaluate the adequacy and effectiveness ofcontrols, and implement remediation plans to address any gaps or weaknesses2. To conduct a successful CSA, it is essential to have a clear and comprehensive understanding of the business process under review, including its objectives, inputs, outputs, activities, resources, dependencies, stakeholders, performance indicators, etc. This will help to identify the relevant risks and controls associated with the process, as well as to evaluate their impact and likelihood. Determining the scope of the assessment, performing detailed test procedures, and evaluating changes to the risk environment are also important factors for an effective CSA program, but not as important as understanding the business process. These factors are more related to the execution and monitoring phases of the CSA program, while understanding the business process is related to the planning and preparation phase. Without a solid understanding of the business process, the scope, testing, and evaluation of the CSA may not be accurate or complete. References: ISACA CISA Review Manual 27th Edition, page 310

 Changing the default configurations of a database system is a critical control for securing it from unauthorized access or exploitation. Default configurations often include weak passwords, unnecessary services, open ports, or known vulnerabilities that can be easily exploited by attackers. The other options are not as important as changing the default configurations, as they do not address the root cause of the security risks. Normalizing tables in the database is a design technique for improving data quality and performance, but it does not affect security. Changing the service port used by the database server is a form of security by obscurity, which can be easily bypassed by port scanning tools. Using the default administration account after changing the account password is still risky, as the account name may be known or guessed by attackers. References: CISA Review Manual (Digital Version), Chapter 5, Section 5.2.4

 The best detective control for a job scheduling process involving data transmission is job failure alerts that are automatically generated and routed to support personnel. Job failure alerts are notifications that indicate when a scheduled job or task fails to execute or complete successfully, such as due to errors, interruptions, or delays. Job failure alerts can help detect and correct any issues or anomalies in the job scheduling process involving data transmission by informing and alerting the support personnel who can investigate and resolve the problem. The other options are not as effective as job failure alerts in detecting issues or anomalies in the job scheduling process involving data transmission, as they do not provide timely or specific information or feedback. Metrics denoting the volume of monthly job failures are reported and reviewed by senior management is a reporting technique that can help measure and improve the performance and reliability of the job scheduling process, but it does not provide immediate or detailed information on individual job failures. Jobs are scheduled to be completed daily and data is transmitted using a Secure File Transfer Protocol (SFTP) is a preventive control that can help ensure the timeliness and security of the job scheduling process involving data transmission, but it does not detect any issues or anomalies that may occur during the process. Jobs are scheduled and a log of this activity is retained for subsequent review is a logging technique that can help record and track the status and results of the job scheduling process involving data transmission, but it does not provide real-time or proactive information on job failures. References: CISA Review Manual (Digital Version), Chapter 3, Section 3.2

The most important control to assess in an audit of an organization’s accounts payable processes is segregation of duties between issuing purchase orders and making payments. Segregation of duties is a principle that requires different individuals or departments to perform different tasks or functions within a process, in order to prevent fraud, errors, or conflicts of interest. In the accounts payableprocess, segregation of duties between issuing purchase orders and making payments ensures that no one person can initiate and complete a transaction without proper authorization and verification. This reduces the risk of duplicate payments, overpayments, unauthorized payments, or payments to fictitious vendors.

References:

Accounts payable controls

Accounts Payable Internal Controls: A Simple Checklist

One benefit of return on investment (ROI) analysis in IT decision making is that it provides the basis for allocating financial resources. ROI analysis is a method of evaluating the profitability or cost-effectiveness of an IT project or investment by comparing the expected benefits with the required costs. ROI analysis can help IT decision makers prioritize and justify their IT initiatives, allocate their financial resources optimally, and demonstrate the value contribution of IT to the organization’s goals and objectives. Basis for allocating indirect costs, cost of replacing equipment, and estimated cost of ownership are not benefits of ROI analysis in IT decision making. These are more inputs or outputs of ROI analysis that could be used to calculate or estimate the costs or benefits of an IT project or investment. References: [ISACA CISA Review Manual 27th Edition], page 307

The executive management concern that could be addressed by the implementation of a security metrics dashboard is the effectiveness of the security program. A security metrics dashboard is a tool that provides a visual representation of key performance indicators (KPIs) and key risk indicators (KRIs) related to the organization’s information security objectives and activities. A security metrics dashboard can help executive management monitor and evaluate the performance and value delivery of the security program, identify strengths and weaknesses, assess compliance with policies and standards, and support decision making and improvement initiatives. Security incidents vs. industry benchmarks, total number of hours budgeted to security, and total number of false positives are not executive management concerns that could be addressed by the implementation of a security metrics dashboard. These are more operational or technical aspects of information security that could be measured and reported by other means, such as incident reports, budget reports, or log analysis. References: [ISACA CISA Review Manual 27th Edition], page 302

 The effectiveness of a risk management program can be measured by how well it reduces the residual risk, which is the risk that remains after applying controls, to an acceptable level. Inherent risk is the risk that exists before applying any controls, and it cannot be eliminated completely. Control risk is the risk that the controls fail to prevent or detect a risk event, and it is a component of residual risk. Overall risk is not a meaningful metric for assessing the effectiveness of a risk management program, as it does not account for the impact and likelihood of different risk events. References: CISA Review Manual (Digital Version), Chapter 1, Section 1.2.2

 The decision to accept an IT control risk related to data quality should be the responsibility of the business owner. The business owner is the person who has the authority and accountability for the business process that relies on the data quality. The business owner should understand the impact of data quality issues on the business objectives, performance, and compliance. The business ownershould also be involved in defining the data quality requirements, assessing the data quality risks, and implementing the data quality controls or mitigation strategies.

Parallel processing is a system implementation approach that involves running the new system and the old system simultaneously for a period of time until the new system is verified and accepted. The primary advantage of parallel processing is that it provides assurance that the new system meets performance requirements and produces the same or better results as the old system. Parallel processing also minimizes the risk of system failure and data loss, as the old system can be used as a backup or fallback option in case of any problems with the new system.

Reconciliation of total amounts by project is the best control to ensure that data is accurately entered into the job-costing system from spreadsheets. Reconciliation is a process of comparing two sets of data to identify any differences or discrepancies between them. By reconciling the total amounts by project from spreadsheets with those from the job-costing system, any errors or omissions in data entry can be detected and corrected. Validity checks are controls that verify that data conforms to predefined formats or ranges. They can prevent entry of character data into numeric fields, but they cannot ensure that the numeric data is correct or complete. Reasonableness checks are controls that verify that data is within expected or acceptable limits. They can detect outliers or anomalies in data, but they cannot ensure that the data matches the source. Display back of project detail after entry is a control that allows the user to review and confirm the data entered into the system. It can help reduce human errors, but it cannot guarantee that the data is accurate or consistent with the source. References: Information Systems Operations and Business Resilience, CISA Review Manual (Digital Version)

The metric that would best measure the agility of an organization’s IT function is average time to turn strategic IT objectives into an agreed upon and approved initiative. IT agility is the ability of an IT function to respond quickly and effectively to changing business needs and opportunities. By measuring how fast an IT function can translate strategic IT objectives into actionable initiatives, such as projects or programs, an organization can assess how well its IT function can align with and support its business strategy. Average number of learning and training hours per IT staff member, frequency of security assessments against the most recent standards and guidelines, and percentage of staff with sufficient IT-related skills for the competency required of their roles are metrics that may indicate other aspects of IT performance, such as capability development, security maturity, and skills gap analysis, but they do not directly measure IT agility. References: ISACA Journal Article: Measuring IT Agility

 Verification of hash totals is a detective control. A detective control is a control that aims to identify and report errors or irregularities that have already occurred. Verification of hash totals is a technique that compares the hash values of data before and after transmission or processing to detect any changes or corruption. The other options are examples of other types of controls, such as programmed edit checks (preventive), backup procedures (recovery), and use of pass cards (preventive). References: CISA Review Manual, 27th Edition, page 223

 A service level agreement (SLA) is a contract between a service provider and a customer that defines the expected level of performance, risks, and capabilities of an IT infrastructure. An IS auditor can use an SLA to measure how well the IT infrastructure meets the business needs and objectives, as well as to identify any gaps or issues that need to be addressed. The other options are not directly related to measuring the performance, risks, and capabilities of an IT infrastructure. References:

CISA Review Manual (Digital Version), Chapter 5, Section 5.2.11

CISA Review Questions, Answers & Explanations Database, Question ID 203

 Capacity management is a process that ensures that the IT resources of an organization are sufficient to meet the current and future demands of the business. Capacity management enables organizations toidentify the extent to which components need to be upgraded, by monitoring and analyzing the performance, utilization, and availability of the IT components, such as servers, networks, storage, applications, etc., and identifying any bottlenecks, gaps, or risks that may affect the service level agreements (SLAs) or quality of service (QoS). Capacity management also helps organizations to plan and optimize the use of IT resources, by forecasting the future demand and growth of the business, and aligning the IT capacity with the business needs and objectives. Forecasting technology trends is a possible outcome of capacity management, but it is not its main purpose. Establishing the capacity of network communication links is a part of capacity management, but it is not its main goal. Determining business transaction volumes is an input for capacity management, but it is not its main objective.

 Stress testing is a type of performance testing that evaluates the behavior and reliability of a system under extreme conditions, such as high workload, limited resources, or concurrent users. Stress testing should ideally be carried out under a test environment with production workloads, as this would simulate the most realistic and demanding scenario for the system without affecting the actual production environment. A production environment with production workloads is not suitable for stress testing, as it could cause disruption or damage to the system and its users. A production environment with test data is not suitable for stress testing, as it could compromise the integrity and security of the production data. A test environment with test data is not suitable for stress testing, as it could underestimate the potential issues and risks that could occur in the production environment. References:

CISA Review Manual, 27th Edition, pages 471-4721

CISA Review Questions, Answers & Explanations Database,Question ID: 261

The audit charter is a document that defines the purpose, scope, authority, and responsibility of an IT audit organization. The audit charter should specify roles and responsibilities within an IT audit organization, such as who is accountable for approving the audit plan, who is responsible for conducting the audits, who is authorized to access the audit evidence, and who is accountable for reporting the audit results. The organizational chart, the engagement letter, and the annual audit plan are also important documents for an IT audit organization, but they do not specify roles and responsibilities as clearly and comprehensively as the audit charter. 

A key performance indicator (KPI) is a quantifiable measure of performance over time for a specific objective1. KPIs help organizations and teams track their progress and achievements towards their strategic goals. To be useful, a KPI must have a target value, which is the desired level of performance or outcome that the organization or team aims to achieve. A target value provides a clear direction and a benchmark for measuring success or failure. Without a target value, a KPI is meaningless, as it does not indicate whether the performance is good or bad, or how far or close the organization or team is from reaching their objective.

 The best method to safeguard data on an organization’s laptop computers is full disk encryption. Full disk encryption is a technique that encrypts all the data stored on a harddrive, including the operating system, applications, files, and folders. This means that if the laptop is lost, stolen, or accessed by an unauthorized person, they will not be able to read or modify any data without knowing the encryption key or password. Full disk encryption provides a strong level of protection for data at rest, as it prevents data leakage or exposure in case of physical theft or loss of the device.

References:

How to Protect theData on Your Laptop

6 Steps to Practice Strong Laptop Security

The expected costs for recovering the business would be used when performing a business impact analysis (BIA). A BIA is a process of identifying and evaluating the potential effects ofdisruptions to critical business functions or processes. A BIA helps to determine the recovery priorities, strategies, and resources needed to resume normal operations after a disruption. One of the key outputs of a BIA is an estimate of the financial losses or costs associated with different types of disruptions, such as lost revenue, increased expenses, contractual penalties, or regulatory fines.

The most effective method to verify that a service vendor keeps control levels as required by the client is to conduct periodic on-site assessments using agreed-upon criteria. On-site assessments can providedirect evidence of whether the vendor’s controls are operating effectively and consistently in accordance with the client’s expectations and requirements. Agreed-upon criteria can ensure that the assessments are objective, relevant, and reliable. The other options are not as effective as on-site assessments in verifying the vendor’s control levels. Periodically reviewing the SLA with the vendor can help monitor whether the vendor meets its contractual obligations and service standards, but it does not provide assurance of whether the vendor’s controls are adequate or sufficient. Conducting an unannounced vulnerability assessment of vendor’s IT systems can help identify any weaknesses or gaps in the vendor’s security controls, but it may violate the terms and conditions of the vendor-client relationship or cause operational disruptions. Obtaining evidence of the vendor’s CSA can provide some indication of whether the vendor’s controls are self-monitored and reported, but it does not verify whether the vendor’s controls are independent or accurate. References: CISA Review Manual (Digital Version), Chapter 5, Section 5.4

The greatest risk associated with an incomplete inventory of deployed software in an organization is the inability to deploy updated security patches. Security patches are updates that fix vulnerabilities or bugs in software that could be exploited by attackers. Without an accurate inventory of software versions and configurations, it is difficult to identify and apply the relevant patches in a timely manner, which exposes the organization to increased security risks. Inability to close unused ports on critical servers, inability to identify unused licenses within the organization, and inability to determine the cost of deployed software are not as critical as security risks. References: ISACA CISA Review Manual 27th Edition, page 308

Before sending backup drives to an offsite storage facility, the most important thing to do is to encrypt the drive with strong protection standards. This is because encryption ensures effective security where information cannot be intercepted and used to harm the organization or its customers. Encryption also protects the data from unauthorized access, modification, or deletion in case the drive is lost, stolen, or damaged during transit or storage. Encryption of backup drives is especially important for public safetyorganizations that handle sensitive or personally identifiable information, such as medical records, criminal records, or emergency communications12.

The best way to obtain assurance that certain automated calculations comply with the regulatory requirements is to re-perform the calculation with audit software. This will allow the auditor to independently verify the accuracy and validity of the calculation and compare it with the expected results. Reviewing sign-off documentation, source code, or user acceptance test results may not provide sufficient evidence or assurance that the calculation is correct and compliant. References:

CISA Review Manual (Digital Version), page 325

CISA Questions, Answers & Explanations Database, question ID 3335

The best recommendation for the IS auditor to facilitate compliance with the new regulation is to include the requirement in the incident management response plan. An incident management response plan is a document that defines the roles, responsibilities, processes, and procedures for responding to security incidents. By including the new regulation in the plan, the IS auditor can ensure that the organization is aware of the reporting obligation, has a clear workflow for notifying the regulator within 24 hours, and has the necessary documentation and evidence to support the report.

The other options are not as effective as including the requirement in the incident management response plan:

Establishing key performance indicators (KPIs) for timely identification of security incidents is a good practice, but it does not guarantee compliance with the regulation. KPIs are metrics that measure the performance of a process or activity, but they do not specify how to perform it. The IS auditor should also provide guidance on how to identify and report security incidents within 24 hours.

Engaging an external security incident response expert for incident handling is a possible option, but it may not be feasible or cost-effective. The organization may not have the budget or time to hire an external expert, or may prefer to handle the incidents internally. The IS auditor should also evaluate the qualifications and trustworthiness of the external expert, and ensure that they comply with the regulation and other contractual or legal obligations.

Enhancing the alert functionality of the intrusion detection system (IDS) is a useful measure, but it is not sufficient to comply with the regulation. An IDS is a tool that monitors network traffic for malicious activity and alerts the network administrator or takes preventive action. However, an IDS may not detect all types of security incidents, or may generate false positivesor negatives. The IS auditor should also consider other sources of incident detection, such as logs, reports, audits, or user feedback.

 Impact assessment is an activity that occurs during the issues management process for a system development project. Issues management is a process of identifying, analyzing, resolving, and monitoring issues that may affect the project scope, schedule, budget, or quality. Impact assessment is a technique of evaluating the severity and priority of an issue, as well as its implications for the project objectives and deliverables. The other options are not activities that occur during the issues management process, but rather related to other processes such as contingency planning, configuration management, or help desk management. References:

CISA Review Manual (Digital Version), Chapter 4, Section 4.3.31

CISA Review Questions, Answers & Explanations Database, Question ID 217

 Validating that assets are protected according to assigned classification is the primary role of the IS auditor in an organization’s information classification process. An IS auditor should evaluate whether the information security controls are adequate and effective in safeguarding the information assets based on their classification levels. The other options are not the primary role of the IS auditor, but rather the responsibilities of the information owners, custodians, or security managers. References:

CISA Review Manual (Digital Version), Chapter 6, Section 6.2.31

CISA Review Questions, Answers & Explanations Database, Question ID 206

 To ensure that management concerns are addressed, internal audit should recommend that the data quality team review the data reported to the regulatory body first. This is because this data set is the most relevant and critical to the issue that triggered the enhancement of the data quality program. The data reported to the regulatory body should be accurate, complete, consistent, and timely, as any discrepancies could result in fines, penalties, or reputational damage for the organization.Data with customer personal information is important for data quality, but it is not directly related to the regulatory reporting issue. Data supporting financial statements is important for data quality, but it may not be the same as the data reported to the regulatory body. Data impacting business objectives is important for data quality, but it may not be as urgent or sensitive as the data reported to the regulatory body. References:

CISA Review Manual, 27th Edition, pages 404-4051

CISA Review Questions, Answers & Explanations Database, Question ID: 262

 A heuristic intrusion detection system (IDS) provides the most protection against emerging threats, as it uses behavioral analysis and anomaly detection to identify unknown or zero-day attacks. A heuristic IDS can adapt to changing patterns and learn from previous incidents, making it more effective than a signature-based IDS, which relies on predefined rules and signatures to detect known attacks. A demilitarized zone (DMZ) is a network segment that separates the internal network from the external network, and it can provide some protection against external threats, but not against internal or emerging threats. Real-time updating of antivirus software is important to protect against malware, but it may not be sufficient to prevent new or sophisticated attacks that exploit unknown vulnerabilities. References: CISA Review Manual (Digital Version) 1, page 452-453.

The first step in an incident response plan is typically preparation12. However, among the options provided, validating the incident would be the first step. This involves confirming that a security event is actually an incident3. It’s important to verify the event to avoid wasting resources on false positives.

References:

Incident Response Plan: Frameworks and Steps - CrowdStrike

What is Incident Response? Plan and Steps | Microsoft Security

What Are the Phases of an Incident Response Plan? - ISC2 Blog

 The auditor should first escalate to audit management to discuss the audit plan. This is because the audit plan should be based on a risk assessment and aligned with the organization’s objectives and strategies. The auditor should not accept the CIO’s request without proper justification and approval from the audit management, who are responsible for ensuring the audit plan’s quality and independence. The auditor should also communicate the potential risks and implications of not conducting IS audits in the upcoming year, such as missing new or emerging threats, vulnerabilities, or compliance issues. References:

CISA Review Manual (Digital Version), Chapter 2, Section 2.11

CISA Online Review Course, Domain 1, Module 1, Lesson 22

The answer A is correct because the greatest concern for an IS auditor when a data owner assigns an incorrect classification level to data is that controls to adequately safeguard the data may not be applied. Data classification is the process of categorizing data assets based on their information sensitivity and business impact. Data classification helps organizations to identify, protect, and manage their data according to their value and risk. Data owners are the individuals or entities who have the authority and responsibility to define, classify, and control the access and use of their data.

Data classification typically involves assigning labels or tags to data assets, such as public, internal, confidential, or restricted. These labels indicate the level of protection and handling required for the data. Based on the data classification, organizations can implement appropriate controls to safeguard the data, such as encryption, access control lists, audit logs, backup policies, etc. These controls help to prevent unauthorized access, disclosure, modification, or loss of data, and to ensure compliance with relevant laws and regulations.

If a data owner assigns an incorrect classification level to data, it can result in either underprotection or overprotection of the data. Underprotection means that the data is classified at a lower level than itshould be, which exposes it to higher risks of compromise or breach. For example, if a data owner classifies personal health information (PHI) as public instead of confidential, it may allow anyone to access or share the data without proper authorization or consent. This can violate the privacy rights of the data subjects and the compliance requirements of regulations such as HIPAA (Health Insurance Portability and Accountability Act). Overprotection means that the data is classified at a higher level than it should be, which limits its availability or usability. For example, if a data owner classifies marketing materials as restricted instead of public, it may prevent potential customers or partners from accessing or viewing the data. This can reduce the business value and opportunities of the data.

Therefore, an IS auditor should be concerned about the accuracy and consistency of data classification by data owners, as it affects the security and efficiency of data management. An IS auditor should review the policies and procedures for data classification, verify that the data owners have adequate knowledge and skills to classify their data, and test that the data classification labels match with the actual sensitivity and impact of the data.

References:

Data Classification: What It Is and How to Implement It

What Is Data Classification? - Definition, Levels & Examples …

Data Classification: A Guide for Data Security Leaders

 Social engineering is the manipulation of people to perform actions or divulge confidential information. It is a common technique used by attackers to gain unauthorized access to systems or data. Employees who use public social networking sites may be vulnerable to social engineering attacks, such as phishing, baiting, or pretexting, which pose the greatest risk to the organization’s security. The other options are not as serious as social engineering, as they relate to web application vulnerabilities, intellectual property rights, and reputation management, which are less likely to compromise the organization’s assets or operations. References: CISA Review Manual (Digital Version), Domain 5: Protection of Information Assets, Section 5.3 Security Awareness Training1

The auditor should be most concerned about the information security policy not being approved by the policy owner. This is because the policy owner is the person who has the authority and accountability for ensuring that the policy is implemented and enforced. Without the policy owner’s approval, the policy may not reflect the organization’s objectives, risks, and compliance requirements. The policy owner is usually a senior executive or a board member who has a stake in the information security governance. The other options are less critical than the policy owner’s approval, although they may also indicate some weaknesses in the policy development and maintenance process. References:

CISA Review Manual (Digital Version), Chapter 1, Section 1.21

CISA Online Review Course, Domain 5, Module 1, Lesson 12

 Monetary unit sampling (MUS) is a statistical sampling method that is used to determine if the account balances or monetary amounts in a population contain any misstatements. MUS treats each individual dollar in the population as a separate sampling unit, so that larger balances or amounts have a higher probability of being selected than smaller ones. MUS then projects the results of testing the sample to the entire population in terms of dollar values, rather than error rates.

One advantage of MUS is that it increases the likelihood of selecting material items from the population. Material items are those that have a significant impact on the financial statements and could influence the decisions of users. By giving more weight to larger items, MUS ensures that material misstatements are more likely to be detected and reported. MUS also reduces the sample size required to achieve a desired level of confidence and precision, as compared to other sampling methods that do not consider the value of items.

References:

4: Monetary unit sampling definition — AccountingTools

5: How Does Monetary Unit Sampling Work? - dummies

6: Audit sampling | ACCA Qualification | Students | ACCA Global

The best test to provide assurance that a health care organization is handling patient data appropriately is compliance with local laws and regulations, as these are the primary sources of authority and obligation for data protection and privacy. Compliance with action plans, industry standards, or organizational policies and procedures are also important, but they may not cover all the legal requirements or reflect the currentbest practices for handling patient data. References: CISA Review Manual (Digital Version), Chapter 2, Section 2.3