CISA Certified Information Systems Auditor Questions and Answers

The most important consideration when defining an operational log management strategy is understanding and meeting stakeholder requirements. This ensures that the strategy aligns with organizational needs and regulatory requirements, providing relevant and actionable information for security and compliance.

References

ISACA CISA Review Manual 27th Edition, Page 273-274 (Log Management)

The best guard against the risk of attack by hackers is encryption. Encryption is the process of transforming data into an unreadable format using a secret key or algorithm. Encryption can protect data in transit and at rest from unauthorized access, modification, or disclosure by hackers. Encryption can also ensure the authenticity and integrity of data by using digital signatures or hashes.

Tunneling, message validation, and firewalls are not the best guards against the risk of attack by hackers. Tunneling is a technique that encapsulates one network protocol within another to create a secure connection between two endpoints. Message validation is a process that verifies the format, content, and origin of a message before accepting it. Firewalls are devices or software that filter network traffic based on predefined rules. These controls may help reduce the exposure or impact of hacker attacks, but they do not provide the same level of protection as encryption.

The best way to ensure the quality and integrity of test procedures used in audit analytics is to centralize procedures and implement change control. Centralizing procedures means storing them in a common repository that can be accessed and updated by authorized users. Change control means implementing a process for tracking, reviewing, approving, and documenting any changes made to the procedures. This ensures that the procedures are consistent, accurate, reliable, and secure. References: CISA Review Manual, 27th Edition, page 401

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

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 as requirements analysis for comparing against the business case. References: CISA Review Manual (Digital Version), Chapter 4, Section 4.2.1

 The most important consideration for a go-live decision when implementing an upgraded enterprise resource planning (ERP) system is the business case. The business case is the document that defines and justifies the need, value, feasibility, and risks of the project. It also outlines the expected costs, benefits, outcomes, and impacts of the project. The business case provides the basis for measuring and evaluating the success of the project. Therefore, before deciding to go live with an upgraded ERP system, it is essential to review and validate the business case to ensure that it is still relevant, accurate, realistic, and achievable.

A rollback strategy, test cases, and post-implementation review objectives are not the most important considerations for a go-live decision when implementing an upgraded ERP system. These are important elements of project planning, execution, and evaluation, but they are not sufficient to determine whether the project is worth pursuing or delivering. These elements should be aligned with and derived from the business case.

Deferring remediation testing until the next audit is justified only when there are significant changes in the audit environment that affect the relevance or validity of the audit observations and recommendations. For example, if there are changes in the business processes, systems, regulations, or risks that require a new audit scope or approach. The other options are not valid justifications for deferring remediation testing, as they do not address the timeliness or quality of the audit follow-up process. The auditor who conducted the audit and agreed with the timeline has left the organization does not affect the responsibility of the audit function to ensure that remediation testing is performed as planned. Management’s planned actions are sufficient given the relative importance of the observations does not guarantee that management will actually implement those actions or that they will be effective in addressing the audit issues. Auditee management has accepted all observations reported by the auditor does not eliminate the need for verification of remediation actions by an independent party. References: CISA Review Manual (Digital Version), Chapter 2, Section 2.4

 The auditor’s best course of action in this situation is to notify the audit manager. The audit manager is responsible for overseeing the audit follow-up process and ensuring that audit issues are resolved in a timely and satisfactory manner. The audit manager can then decide whether to escalate the matter to higher authorities, such as the chair of the audit committee, or to accept management’s decision and close the audit finding. The other options are not appropriate for the auditor to do without consulting with the audit manager first. Notifying the chair of the audit committee 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. Retesting the control is not necessary, as management has already decided not to implement the recommendations. Closing the audit finding is premature, as management’s decision may not be aligned with the audit objectives or risk appetite. References: CISA Review Manual (Digital Version), Chapter 2, Section 2.4

The IS auditor’s best course of action in this situation is to present observations for discussion only. Observations are factual statements or findings that are based on the audit evidence collected and analyzed during the audit. Observations can be presented to management for discussion and feedback, but they should not be considered as final conclusions or recommendations until the audit is completed and the audit report is issued. The other options are not appropriate for presenting the findings to date, as they may compromise the audit quality or integrity. Reviewing working papers with the auditee is not advisable, as working papers are confidential documents that contain the auditor’s notes, calculations, and opinions that may not be relevant or accurate for management’s review. Requesting the auditee provide management responses is premature, as management responses should be obtained after the audit report is issued and the audit findings and recommendations are finalized. Requesting management wait until a final report is ready for discussion is impractical, as management may have a legitimate interest or need to know the audit progress and results as soon as possible. References: CISA Review Manual (Digital Version), Chapter 2, Section 2.3

The best recommendation for a small IT web development company where developers must have write access to production is to remove production access from the developers. Production access is the ability to modify or update the live systems or applications that are used by customers or end users. Production access should be restricted to authorized and qualified personnel only, as any changes or errors in production can affect the functionality, performance, or security of the systems or applications. Developers should not have write access to production, as they may introduce bugs, vulnerabilities, or inconsistencies in the code that can compromise the quality or reliability of the systems or applications. The other options are not as effective as removing production access from the developers, as they do not address the root cause of the problem or provide the same benefits. Hiring another person to perform migration to production is a costly solution that can help segregate the roles and responsibilities of developers and migrators, but it does not remove production access from the developers. Implementing continuous monitoring controls is a good practice that can help detect and correct any issues or anomalies in production, but it does not remove production access from the developers. Performing a user access review for the development team is a detective control that can help verify and validate the access rights and privileges of developers, but it does not remove production access from the developers. References: CISA Review Manual (Digital Version), Chapter 3, Section 3.2

 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.

The most important aspect of an application development acceptance test is that user management approves the test design before the test is started, as this ensures that the test objectives, criteria, and procedures are aligned with the user requirements and expectations. The programming team’s involvement in the testing process, the testing of data files for valid information before conversion, and the quality assurance (QA) team’s charge of the testing process are also important, but they are not as critical as user management’s approval of the test design. References: CISA Review Manual (Digital Version), Chapter 4, Section 4.4.2

 The most important benefit of involving IS audit when implementing governance of enterprise IT is providing independent and objective feedback to facilitate improvement of IT processes. Governance of enterprise IT is the process of ensuring that IT supports the organization’s strategy, goals, and objectives in an effective, efficient, ethical, and compliant manner. IS audit can provide value to governance of enterprise IT by assessing the alignment of IT with business needs, evaluating the performance and value delivery of IT, identifying risks and issues related to IT, recommending corrective actions and best practices, and monitoring the implementation and effectiveness of IT governance activities. IS audit can also provide assurance that IT governance processes are designed and operating in accordance with relevant standards, frameworks, laws, regulations, and contractual obligations. Identifying relevant roles for an enterprise IT governance framework is a benefit of involving IS audit when implementing governance of enterprise IT, but not the most important one. IS audit can help define and clarify the roles and responsibilities of various stakeholders involved in IT governance, such as board members, senior management, business units, IT function, external parties, etc. IS audit can also help ensure that these roles are aligned with the organization’s strategy, goals, and objectives, and that they have adequate authority, accountability, communication, and reporting mechanisms. However, this benefit is more related to the design phase of IT governance implementation than to the ongoing monitoring and improvement phase. Making decisions regarding risk response and monitoring of residual risk is a benefit of involving IS audit when implementing governance of enterprise IT, but not the most important one. IS audit can help identify and assess the risks associated with IT activities and processes, such as strategic risks, operational risks, compliance risks, security risks, etc. IS audit can also help evaluate the effectiveness of risk management practices and controls implemented by management to mitigate or reduce these risks. However, this benefit is more related to the assurance function of IS audit than to its advisory function. Verifying that legal, regulatory, and contractual requirements are being met is a benefit of involving IS audit when implementing governance of enterprise IT, but not the most important one. IS audit can help verify that IT activities and processes comply with applicable laws, regulations, and contractual obligations, such as data protection laws, privacy laws, cybersecurity laws, industry standards, service level agreements, etc. IS audit can also help identify and report any instances of noncompliance or violations that could result in legal or reputational consequences for the organization. However, this benefit is more related to the assurance function of IS audit than to its advisory function. References: ISACA CISA Review Manual 27th Edition, page 283

The best source of information for assessing the effectiveness of IT process monitoring is performance data. Performance data is a type of information that measures and reports on the results or outcomes of IT processes, such as availability, reliability, throughput, response time, or error rate. Performance data can help assess the effectiveness of IT process monitoring by providing quantitative and qualitative indicators of whether IT processes are meeting their objectives, standards, or expectations. The other options are not as good as performance data in assessing the effectiveness of IT process monitoring, as they do not provide direct or objective evidence of IT process results or outcomes. Real-time audit software is a type of tool that can help automate and facilitate audit activities, such as data collection, analysis, or reporting, but it does not provide information on IT process performance. Quality assurance (QA) reviews are a type of activity that can help evaluate and improve the quality of IT processes, products, or services, but they do not provide information on IT process performance. Participative management techniques are a type of method that can help involve and motivate IT staff in decision-making and problem-solving processes, but they do not provide information on IT process performance. References: CISA Review Manual (Digital Version), Chapter 3, Section 3.3

The most effective way to detect an intrusion attempt is to periodically review log files, which record the activities and events on a system or network. Log files can provide evidence of unauthorized access attempts, malicious activities, or system errors. Configuring the router as a firewall, using smart cards with one-time passwords, and installing biometrics-based authentication are preventive controls that can reduce the likelihood of an intrusion, but they do not detect it. References: ISACA CISA Review Manual 27th Edition, page 301

 The most important thing to include in forensic data collection and preservation procedures is preserving data integrity. Data integrity is the property that ensures that data is accurate, complete, and consistent throughout its lifecycle. Preserving data integrity is essential for forensic data collection and preservation procedures because it ensures that the data can be used as valid and reliable evidence in legal proceedings or investigations. Preserving data integrity can be achieved by using methods such as hashing, checksums, digital signatures, write blockers, tamper-evident seals, or timestamps. The other options are not as important as preserving data integrity in forensic data collection and preservation procedures, as they do not affect the validity or reliability of the data. Assuring the physical security of devices is a security measure that protects devices from unauthorized access, theft, damage, or destruction, but it does not ensure that the data on the devices is accurate, complete, and consistent. Maintaining chain of custody is a documentation technique that records and tracks the handling and transfer of devices or data among different parties involved in forensic activities, but it does not ensure that the data on the devices is accurate, complete, and consistent. Determining tools to be used is a planning activity that selects and prepares the appropriate tools for forensic data collection and preservation procedures, but it does not ensure that the data collected and preserved by the tools is accurate, complete, and consistent. References: CISA Review Manual (Digital Version), Chapter 5, Section 5.4

If an IS audit reveals that an organization is not proactively addressing known vulnerabilities, the IS auditor should recommend that the organization assess the security risks to the business first, as this would help to prioritize the vulnerabilities based on their impact and likelihood, and determine the appropriate mitigation strategies. Verifying the disaster recovery plan (DRP) has been tested, ensuring the intrusion prevention system (IPS) is effective, and confirming the incident response team understands the issue are important steps, but they are not as urgent as assessing the security risks to the business. References: CISA Review Manual (Digital Version), Chapter 5, Section 5.6

 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 hard drive, 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 the Data on Your Laptop

6 Steps to Practice Strong Laptop Security

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 (Digital Version), Chapter 3, Section 3.2

Allowing only corporate IM solutions is the best control to mitigate the malware risk associated with an IM system, because it can prevent unauthorized or malicious IM applications from accessing the network and infecting the system with malware. Corporate IM solutions can also enforce security policies and standards, such as encryption, authentication, and logging, to protect the IM system from malware attacks. Blocking attachments in IM, blocking external IM traffic, and encrypting IM traffic are also possible controls to mitigate the malware risk, but they are not as effective as allowing only corporate IM solutions. References: CISA Review Manual (Digital Version), Chapter 5, Section 5.4.4

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 of controls, 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

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 payable process, 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

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.

Referential integrity is a property of data that ensures that all references between tables are valid and consistent. Disabling referential integrity controls can result in orphaned records, data anomalies, and inaccurate queries. The most effective way to compensate for the lack of referential integrity is to perform periodic table link checks, which verify that all foreign keys match existing primary keys in the related tables. More frequent data backups, concurrent access controls, and performance monitoring tools do not address the issue of data consistency and accuracy. References: ISACA CISA Review Manual 27th Edition, page 291

 The IS auditor’s independence would be most likely impaired if they implemented a specific control during the development of an application system. This is because the IS auditor would be auditing their own work, which creates a self-review threat that could compromise their objectivity and impartiality. The IS auditor should avoid participating in any operational or management activities that could affect their ability to perform an unbiased audit. The other options do not pose a significant threat to the IS auditor’s independence, as long as they follow the ethical standards and guidelines of the profession.

The most concerning issue when determining if information assets are adequately safeguarded during transport and disposal is lack of appropriate data classification. Data classification is a process that assigns categories or levels of sensitivity to different types of information assets based on their value, criticality, or risk to the organization. Data classification can help safeguard information assets during transport and disposal by providing criteria and guidelines for identifying, labeling, handling, and protecting information assets according to their sensitivity. Lack of appropriate data classification can compromise the security and confidentiality of information assets during transport and disposal by exposing them to unauthorized access, disclosure, theft, damage, or destruction. The other options are not as concerning as lack of appropriate data classification in safeguarding information assets during transport and disposal, as they do not affect the identification, labeling, handling, or protection of information assets according to their sensitivity. Lack of appropriate labeling is a possible factor that may increase the risk of misplacing, losing, or mishandling information assets during transport and disposal, but it does not affect the classification of information assets according to their sensitivity. Lack of recent awareness training is a possible factor that may affect the knowledge or behavior of staff involved in transporting or disposing of information assets, but it does not affect the classification of information assets according to their sensitivity. Lack of password protection is a possible factor that may affect the security or confidentiality of information assets stored on devices during transport and disposal, but it does not affect the classification of information assets according to their sensitivity. References: CISA Review Manual (Digital Version), Chapter 5, Section 5.3.2

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 provide direct 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 best strategy to optimize data storage without compromising data retention practices is to limit the size of file attachments being sent via email. This strategy can reduce the amount of storage space required for email messages, as well as the network bandwidth consumed by email traffic. File attachments can be large and often contain redundant or unnecessary information that can be compressed, converted, or removed before sending. By limiting the size of file attachments, the sender can encourage the use of more efficient formats, such as PDF or ZIP, or alternative methods of sharing files, such as cloud storage or web links. This can also improve the security and privacy of email communications, as large attachments may pose a higher risk of being intercepted, corrupted, or infected by malware.

References:

Data Storage Optimization: What is it and Why Does it Matter?

Data storage optimization 101: Everything you need to know

The best way to assess the effectiveness of changes made to processes and tools related to an organization’s BCP is to review the full test results of the BCP. Full test results can provide evidence of whether the changes have improved the BCP’s objectives, such as recovery time objectives (RTOs), recovery point objectives (RPOs), and business impact analysis (BIA). The other options are not as effective as reviewing the full test results, as they do not demonstrate the actual performance of the BCP under simulated disaster scenarios. Completed test plans are only documents that outline the scope, objectives, and procedures of the BCP testing, but they do not show the outcomes or issues encountered during the testing. Updated inventory of systems is a component of the BCP that identifies the critical systems and resources required for business continuity, but it does not measure the effectiveness of the BCP changes. Change management processes are controls that ensure that changes to the BCP are authorized, documented, and communicated, but they do not evaluate the impact or benefit of the changes. References: CISA Review Manual (Digital Version), Chapter 4, Section 4.2.3

 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 best way to prevent accepting bad data from a third-party service provider is to implement business rules to reject invalid data. Business rules are logical expressions that define the business requirements and constraints for specific data elements. They can be used to validate, transform, or filter incoming data from external sources, ensuring that only high-quality data is accepted into the enterprise data warehouse. Business rules can also help to identify and resolve data quality issues, such as missing values, duplicates, outliers, or inconsistencies. 

 When reviewing an enterprise architecture (EA) department’s decision to change a legacy system’s components while maintaining its original functionality, an IS auditor should understand the current business capabilities delivered by the legacy system, as this would help to evaluate whether the change is justified, feasible, and aligned with the business goals and needs. The proposed network topology to be used by the redesigned system, the data flows between the components to be used by the redesigned system, and the database entity relationships within the legacy system are technical details that are less relevant for an IS auditor to understand when reviewing this decision. References: CISA Review Manual (Digital Version), Chapter 3, Section 3.2

Reviewing and evaluating application test cases is the most effective use of an IS auditor’s time during the evaluation of controls over a major application development project. Application test cases are designed to verify that the application meets the functional and non-functional requirements and specifications. They also help to identify and correct any errors, defects, or vulnerabilities in the application before it is deployed. By reviewing and evaluating the test cases, the IS auditor can assess the quality, reliability, security, and performance of the application and provide recommendations for improvement. 

 The first thing that should be done when an intrusion into an organization network is detected is to identify nodes that have been compromised. Identifying nodes that have been compromised is a critical step in responding to an intrusion, as it helps determine the scope, impact, and source of the attack, and enables the implementation of appropriate containment and recovery measures. The other options are not the first things that should be done when an intrusion into an organization network is detected, as they may be premature or ineffective without identifying nodes that have been compromised. Blocking all compromised network nodes is a containment measure that can help isolate and prevent the spread of the attack, but it may not be possible or feasible without identifying nodes that have been compromised. Contacting law enforcement is a reporting measure that can help seek external assistance and comply with legal obligations, but it may not be necessary or appropriate without identifying nodes that have been compromised. Notifying senior management is a communication measure that can help inform and escalate the incident, but it may not be urgent or accurate without identifying nodes that have been compromised. References: CISA Review Manual (Digital Version), Chapter 4, Section 4.2.2

The primary responsibility of an IS auditor during the design phase of a software development project is to evaluate the controls incorporated into the system specifications. Controls are mechanisms or procedures that aim to ensure the security, reliability, or performance of a system or process. System specifications are documents that define and describe the requirements, features, functions, or components of a system or software. Evaluating the controls incorporated into the system specifications is a key responsibility of an IS auditor during the design phase of a software development project, as it helps ensure that the system or software meets the organization’s objectives, standards, and expectations for security, reliability, or performance. The other options are not primary responsibilities of an IS auditor during the design phase of a software development project, as they do not directly relate to evaluating the controls incorporated into the system specifications. Future compatibility of the application is a possible factor that may affect the functionality or usability of the application in different environments or platforms, but it is not a primary responsibility of an IS auditor during the design phase of a software development project. Proposed functionality of the application is a possible factor that may affect the suitability or value of the application for meeting user needs or expectations, but it is not a primary responsibility of an IS auditor during the design phase of a software development project. Development methodology employed is a possible factor that may affect the quality or consistency of the software development process, but it is not a primary responsibility of an IS auditor during the design phase of a software development project. References: CISA Review Manual (Digital Version), Chapter 3, Section 3.3

The most effective control to mitigate unintentional misuse of authorized access is security awareness training. This is because security awareness training can educate users on the proper use of their access rights, the potential consequences of misuse, and the best practices to protect the confidentiality, integrity, and availability of information systems. Security awareness training can also help users recognize and avoid common threats such as phishing, malware, and social engineering.

Annual sign-off of acceptable use policy, regular monitoring of user access logs, and formalized disciplinary action are not the most effective controls to mitigate unintentional misuse of authorized access. These controls may help deter or detect intentional misuse, but they do not address the root cause of unintentional misuse, which is often a lack of knowledge or awareness of security policies and procedures.

The best way to address segregation of duties issues in an organization with budget constraints is to implement compensating controls, which are alternative controls that reduce or eliminate the risk of errors or fraud due to inadequate segregation of duties. Compensating controls may include independent reviews, reconciliations, approvals, or supervisions. Rotating job duties periodically may reduce the risk of collusion or abuse of privileges, but it may also affect operational efficiency and continuity. Performing an independent audit may detect segregation of duties issues, but it does not prevent them. Hiring temporary staff may increase operational costs and introduce new risks. References: CISA Review Manual (Digital Version), Chapter 2, Section 2.4

Risk-based auditing is an audit approach that focuses on the analysis and management of risk within an organization. Risk-based auditing helps identify and prioritize the areas or processes that pose the highest risk to the organization’s objectives and allocate audit resources accordingly. Risk-based auditing also helps provide assurance and advisory services related to the organization’s risk management processes and controls. By using risk-based auditing, internal auditors can optimize the use of their audit resources and add value to the organization.

Agile auditing, continuous auditing, and outsourced auditing are not audit approaches that are most helpful in optimizing the use of IS audit resources. Agile auditing is a flexible and iterative audit methodology that adapts to changing circumstances and stakeholder needs. Continuous auditing is a method of performing audit activities on a real-time or near-real-time basis using automated tools and techniques. Outsourced auditing is a practice of contracting external auditors to perform some or all of the internal audit functions. These audit methods may have some advantages or disadvantages depending on the context and objectives of the audit, but they do not necessarily optimize the use of IS audit resources.

 Substantive testing provides the most reliable audit evidence on the validity of transactions in a financial application. Substantive testing is an audit procedure that examines the financial statements and supporting documentation to see if they contain errors or misstatements. Substantive testing can help to verify that the transactions recorded in the financial application are authorized, complete, accurate, and properly classified. Substantive testing can include methods such as vouching, confirmation, analytical procedures, or physical examination. 

Flooding the site with an excessive number of packets is an attack technique that will succeed because of an inherent security weakness in an Internet firewall. This type of attack is also known as a denial-of-service (DoS) attack or a distributed denial-of-service (DDoS) attack if it involves multiple sources. The aim of this attack is to overwhelm the network bandwidth or the processing capacity of the firewall or the target system, rendering it unable to respond to legitimate requests or perform its normal functions. An Internet firewall is a device or software that monitors and controls incoming and outgoing network traffic based on predefined rules. A firewall can block or allow traffic based on various criteria, such as source address, destination address, port number, protocol type, application type, etc. However, a firewall cannot prevent traffic from reaching its interface or distinguish between legitimate and malicious traffic based on its content or behavior. Therefore, a firewall is vulnerable to flooding attacks that exploit its limited resources. Phishing is an attack technique that involves sending fraudulent emails or messages that appear to come from legitimate sources, such as banks, government agencies, online services, etc., in order to trick recipients into revealing their personal or financial information, such as passwords, credit card numbers, bank account details, etc., or into clicking on malicious links or attachments that can infect their systems with malware or ransomware. Phishing does not exploit an inherent security weakness in an Internet firewall, but rather exploits human psychology and social engineering techniques. A firewall cannot prevent phishing emails or messages from reaching their intended targets, unless they contain some identifiable features that can be filtered out by the firewall rules. However, a firewall cannot detect or prevent users from responding to phishing emails or messages or from opening malicious links or attachments. Using a dictionary attack of encrypted passwords is an attack technique that involves trying to guess or crack passwords by using a list of common or likely passwords or by using a brute-force method that tries all possible combinations of characters. This type of attack does not exploit an inherent security weakness in an Internet firewall, but rather exploits weak or poorly chosen passwords or weak encryption algorithms. A firewall cannot prevent a dictionary attack of encrypted passwords, unless it has some mechanisms to detect and block repeated or suspicious login attempts or to enforce strong password policies. However, a firewall cannot protect passwords from being stolen or intercepted by other means, such as phishing, malware, keylogging, etc. Intercepting packets and viewing passwords is an attack technique that involves capturing and analyzing network traffic that contains sensitive information, such as passwords, credit card numbers, bank account details, etc., in order to use them for malicious purposes. This type of attack does not exploit an inherent security weakness in an Internet firewall, but rather exploits insecure or unencrypted network communication protocols or channels. A firewall cannot prevent packets from being intercepted and viewed by unauthorized parties, unless it has some mechanisms to encrypt or obfuscate the network traffic or to authenticate the source and destination of the traffic. However, a firewall cannot protect packets from being modified or tampered with by other means, such as man-in-the-middle attacks, replay attacks, etc. References: ISACA CISA Review Manual 27th Edition, page 300

 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 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 owner should also be involved in defining the data quality requirements, assessing the data quality risks, and implementing the data quality controls or mitigation strategies.

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 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

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 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

 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 requires careful 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: ISACA CISA Review Manual 27th Edition, page 281

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 role within the RACI chart that would provide information on who has oversight of staff performing a specific task is accountable. A RACI chart is a matrix that defines and assigns the roles and responsibilities of different stakeholders for a project, process, or activity. RACI stands for responsible, accountable, consulted, and informed. Accountable is the role that has the authority and oversight to approve or reject the work done by the responsible role. The other options are not the roles that provide information on who has oversight of staff performing a specific task, as they have different meanings and functions. Consulted is the role that provides input or advice to the responsible or accountable roles. Informed is the role that receives updates or reports from the responsible or accountable roles. Responsible is the role that performs or executes the work or task. References: CISA Review Manual (Digital Version), Chapter 3, Section 3.3

The first step when planning a penetration test is to obtain management consent for the testing. This is because a penetration test involves simulating a cyberattack against the organization’s systems and networks, which may have legal, ethical, and operational implications. Without proper authorization from management, a penetration test may violate laws, policies, contracts, or service level agreements. Management consent also helps define the objectives, scope, and boundaries of the test, as well as the roles and responsibilities of the testers and the stakeholders. Obtaining management consent for the testing also demonstrates due care and due diligence on the part of the testers and the organization.

Executing nondisclosure agreements (NDAs), determining reporting requirements for vulnerabilities, and defining the testing scope are important steps when planning a penetration test, but they are not the first step. These steps should be done after obtaining management consent for the testing, as they depend on the approval and involvement of management and other parties.

Moving validation controls from the server side into the browser would most likely increase the risk of a successful attack by structured query language (SQL) injection. SQL injection is a technique that exploits a security vulnerability in an application’s database layer by inserting malicious SQL statements into user input fields. Validation controls are used to check and filter user input before sending it to the database. If these controls are moved to the browser, they can be easily bypassed or modified by an attacker, who can then execute arbitrary SQL commands on the database. References: CISA Review Manual, 27th Edition, page 361

 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 as reliable 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

 Secure code reviews as part of a continuous deployment program are preventive controls. Preventive controls are controls that aim to prevent or avoid undesirable events or outcomes from occurring, such as errors, defects, or incidents. Secure code reviews are activities that examine and evaluate the source code of a software or application to identify and eliminate any vulnerabilities, flaws, or weaknesses that may compromise its security, functionality, or performance. Secure code reviews as part of a continuous deployment program can help prevent or avoid security issues or incidents from occurring by ensuring that the code is secure and compliant before it is deployed to production. The other options are not correct types of controls for secure code reviews as part of a continuous deployment program, as they have different meanings and functions. Detective controls are controls that aim to detect or discover undesirable events or outcomes that have occurred, such as errors, defects, or incidents. Logical controls are controls that use software or hardware mechanisms to regulate or restrict access to IT resources, such as data, systems, or networks. Corrective controls are controls that aim to correct or rectify undesirable events or outcomes that have occurred, such as errors, defects, or incidents. References: CISA Review Manual (Digital Version), Chapter 3, Section 3.2

 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 are possible subsequent steps, but they should not precede interviewing management. References: CISA Review Manual (Digital Version), Chapter 1, Section 1.6

A post-implementation review (PIR) is an assessment conducted at the end of a project cycle to determine if the project was indeed successful and to identify any existing flaws in the project1. One of the main objectives of a PIR is to evaluate the outcome and functional value of a project1. Therefore, an IS auditor should be most concerned with whether the system meets the intended requirements and delivers the expected benefits to the stakeholders. A system that does not have a maintenance plan is a major risk, as it may not be able to cope with changing needs, fix errors, or prevent security breaches. A maintenance plan is essential for ensuring the system’s reliability, availability, and performance in the long term2.

The other options are less critical for a PIR, as they are more related to the project management aspects than the system quality aspects. The system may contain several minor defects that do not affect its functionality or usability, and these can be resolved in future updates. The system deployment may be delayed by three weeks due to unforeseen circumstances or dependencies, but this does not necessarily mean that the system is faulty or ineffective. The system may be over budget by 15% due to various factors such as scope creep, resource constraints, or market fluctuations, but this does not imply that the system is not valuable or beneficial.

References: 1: Post-Implementation Review Best Practices - MetaPM 2: What is Post-Implementation Review in Project Management?

 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 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. 

 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

 Internet Protocol (IP) address restrictions are used in a firewall to protect the entity’s internal resources by allowing or denying access to specific IP addresses or ranges of IP addresses based on predefined rules. Remote access servers, Secure Sockets Layers (SSLs), and failover services are not directly related to firewall protection, but rather to other aspects of network security, such as authentication, encryption, and availability. References: CISA Review Manual (Digital Version), Chapter 5: Protection of Information Assets, Section 5.2: Network Security Devices and Technologies

 Version control is a process of managing changes to an application or a document. It ensures that only the latest approved version of the application is used by end-users, which reduces the risk of errors, inconsistencies, and unauthorized modifications. Version control also allows tracking the history of changes and restoring previous versions if needed. 

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 current best practices for handling patient data. References: CISA Review Manual (Digital Version), Chapter 2, Section 2.3

The best recommendation to prevent fraudulent electronic funds transfers by accounts payable employees is dual control. Dual control is a segregation of duties control that requires two or more individuals to perform or authorize a transaction or activity. Dual control can prevent fraudulent electronic funds transfers by requiring independent verification and approval of payment requests, amounts, and recipients by different accounts payable employees. The other options are not as effective as dual control in preventing fraudulent electronic funds transfers, as they do not involve independent checks or approvals. Periodic vendor reviews are detective controls that can help identify any irregularities or anomalies in vendor payments, but they do not prevent fraudulent electronic funds transfers from occurring. Independent reconciliation is a detective control that can help compare and confirm payment records with bank statements, but it does not prevent fraudulent electronic funds transfers from occurring. Re-keying of monetary amounts is an input control that can help detect any errors or discrepancies in payment amounts, but it does not prevent fraudulent electronic funds transfers from occurring. References: CISA Review Manual (Digital Version), Chapter 3, Section 3.2

 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 management decision that presents the greatest risk associated with data leakage is not providing security awareness training to staff. This is because staff are often the weakest link in the information security chain, and they may unintentionally or maliciously leak sensitive data through various channels, such as email, social media, cloud storage, or removable media. Security awareness training is essential to educate staff on the importance of protecting data, the policies and procedures for handling data, and the best practices for preventing and reporting data leakage incidents. Not requiring desktops to be encrypted, allowing staff to work remotely, and not updating security policies in the past year are also management decisions that may increase the risk of data leakage, but they are not as significant as not providing security awareness training to staff. Encryption, remote work, and security policies are technical or administrative controls that can be implemented or enforced by management, but they cannot fully prevent or mitigate human errors or malicious actions by staff. References: CISA Review Manual (Digital Version), [ISACA Privacy Principles and Program Management Guide]

 The primary reason to perform a risk assessment is to determine the current risk profile of the organization, which is the level of risk exposure and the likelihood and impact of potential threats. This will help the organization to identify and prioritize the risks that need to be addressed and to align the risk management strategy with the business objectives. A risk assessment may also help to achieve compliance, support the BIA, and allocate budget, but these are not the primary reasons. References: ISACA Glossary of Terms, section “risk assessment”

The best situation that justifies the use of a smaller sample size when testing the accuracy of transaction data is B. It is expected that the population is error-free. The sample size is the number of items selected from the population for testing. The sample size depends on various factors, such as the level of confidence, the tolerable error rate, the expected error rate, and the variability of the population. A smaller sample size means that fewer items are tested, which reduces the cost and time of testing, but also increases the sampling risk (the risk that the sample is not representative of the population).

One of the factors that affects the sample size is the expected error rate, which is the auditor’s best estimate of the proportion of errors in the population before testing. A higher expected error rate means that more errors are likely to be found in the population, which requires a larger sample size to provide sufficient evidence for the auditor’s conclusion. A lower expected error rate means that fewer errors are likely to be found in the population, which allows a smaller sample size to provide sufficient evidence for the auditor’s conclusion. Therefore, if it is expected that the population is error-free (i.e., the expected error rate is zero or very low), a smaller sample size can be justified.

The other situations do not justify the use of a smaller sample size when testing the accuracy of transaction data. A. The IS audit staff has a high level of experience. The IS audit staff’s level of experience does not affect the sample size, but rather their ability to design and execute the sampling procedures and evaluate the results. The IS audit staff’s level of experience may affect their judgment in selecting and applying sampling methods, but it does not change the statistical or mathematical principles that determine the sample size. B. Proper segregation of duties is in place. Proper segregation of duties is an internal control that helps prevent or detect errors or fraud in transaction processing, but it does not affect the sample size. The sample size is based on the characteristics of the population and the objectives of testing, not on the controls in place. Proper segregation of duties may reduce the likelihood or impact of errors or fraud in transaction processing, but it does not eliminate them completely. Therefore, proper segregation of duties does not justify a smaller sample size when testing the accuracy of transaction data. C. The data can be directly changed by users. The data’s ability to be directly changed by users does not justify a smaller sample size, but rather a larger one. The data’s ability to be directly changed by users increases the risk of errors or fraud in transaction processing, which requires a larger sample size to provide sufficient evidence for the auditor’s conclusion. The data’s ability to be directly changed by users also increases the variability of the population, which affects the sample size.

References:

ISACA, CISA Review Manual, 27th Edition, 2019, p. 2471

ISACA, CISA Review Questions, Answers & Explanations Database - 12 Month Subscription2

Audit Sampling - AICPA3

How to choose a sample size (for the statistically challenged)

 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 an increased 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

 The most useful analytical method when trying to identify groups with similar behavior or characteristics in a large population is classification. Classification is a technique that assigns data points to predefined categories or classes based on their features or attributes. Classification can help to discover patterns, trends, and relationships among the data and reveal the similarities or differences among the groups. Classification can also help to support decision making, prediction, or recommendation based on the data analysis. References:

CISA Review Manual (Digital Version), Chapter 3, Section 3.4.21

CISA Online Review Course, Domain 2, Module 3, Lesson 12

 The auditor should be most concerned with the impact AI will have on enterprise architecture (EA) when reviewing a project to replace multiple manual data entry systems with an AI system. EA is a comprehensive framework that defines the structure, components, relationships, and principles of an organization’s IT environment. EA can help to align the IT strategy with the business strategy and ensure the coherence, consistency, and integration of the IT systems and services. Replacing manual data entry systems with an AI system may have significant implications for the EA, such as changing the business processes, data flows, security requirements, performance standards, or governance models. The auditor should assess whether the project has considered the impact of AI on EA and whether the EA has been updated accordingly. References:

CISA Review Manual (Digital Version), Chapter 1, Section 1.41

CISA Online Review Course, Domain 5, Module 1, Lesson 22

The most important thing for an IS auditor to validate when auditing network device management is that all devices have current security patches assessed. This is because security patches are essential for fixing known vulnerabilities and preventing unauthorized access, data breaches, or denial-of-service attacks on the network devices. If the network devices are not patched regularly, they may expose the network to various cyber threats and compromise the confidentiality, integrity, and availability of the network services and data12.

Devices cannot be accessed through service accounts is not the most important thing to validate because service accounts are typically used for automated tasks or processes that require privileged access to network devices. Service accounts can be secured by using strong passwords, limiting their permissions, and monitoring their activities. However, service accounts alone do not protect the network devices from external or internal attacks that exploit unpatched vulnerabilities3.

Backup policies include device configuration files is not the most important thing to validate because backup policies are mainly used for restoring the network devices in case of failure, disaster, or corruption. Backup policies can help with recovering the network functionality and data, but they do not prevent the network devices from being compromised or attacked in the first place. Backup policies should be complemented by security policies that ensure the network devices are patched and protected4.

All devices are located within a protected network segment is not the most important thing to validate because network segmentation is a technique that divides the network into smaller subnets or zones based on different criteria, such as function, security level, or access control. Network segmentation can help isolate and contain the impact of a potential attack on a network device, but it does not prevent the attack from happening. Network segmentation should be combined with security patching and other security measures to ensure the network devices are secure.

Recovery facilities providing a redundant combination of Internet connections to the local communications loop is an example of last-mile circuit protection. Last-mile circuit protection is a type of telecommunications continuity that ensures the availability and redundancy of the final segment of the network that connects the end-user to the service provider. The local communications loop, also known as the local loop or subscriber line, is the physical link between the customer premises and the nearest central office or point of presence of the service provider. By having multiple Internet connections from different providers or technologies, such as cable, DSL, fiber, wireless, or satellite, the recovery facilities can avoid losing connectivity in case one of the connections fails or is disrupted by a disaster5.

References:

9: Last Mile Redundancy - How to Ensure Business Continuity - Multapplied Networks

The first step when conducting an IT risk assessment is to identify assets to be protected, which include hardware, software, data, processes, people, and facilities that support the business objectives and operations of an organization. Identifying assets to be protected helps to establish the scope and boundaries of the risk assessment, as well as the value and criticality of each asset. Identifying potential threats, assessing vulnerabilities, and evaluating controls in place are subsequent steps in the risk assessment process that depend on the identification of assets to be protected. References: CISA Review Manual (Digital Version), Chapter 2: Governance & Management of IT, Section 2.3: IT Risk Management

 The IS auditor’s best course of action when reviewing the use of an outsourcer for disposal of storage media is to determine exposure to the business. Storage media, such as hard disks, tapes, flash drives, or CDs, may contain sensitive or confidential information that needs to be protected from unauthorized access, disclosure, or misuse. The IS auditor should verify that the outsourcer has a process that appropriately sanitizes the media before disposal, such as wiping, degaussing, shredding, or incinerating, and that the process is effective and compliant with the organization’s policies and standards. The IS auditor should also assess the potential impact and risk to the business if the storage media is not properly sanitized or disposed of, such as data breaches, reputational damage, legal or regulatory penalties, or loss of competitive advantage. The other options are not the best course of action, because they either do not address the root cause of the problem, or they are reactive rather than proactive measures. References: CISA Review Manual (Digital Version)1, Chapter 5, Section 5.2.7

 A business impact analysis (BIA) is the process of identifying and assessing the potential impacts a disruption or incident could have on an organization. A BIA helps organizations understand and prepare for these potential obstacles, so they can act quickly and face challenges head-on when they arise. A BIA tells the organization what to expect when unforeseen roadblocks occur, so they can make a plan to get their business back on track as quickly as possible. Therefore, a BIA is the best option to anticipate the effects of a disaster.

References:

10: Business Impact Analysis (BIA): Prepare for Anything [2023] • Asana

11: Definition of Business Impact Analysis (BIA) - IT Glossary | Gartner Information Technology

12: Business impact analysis (BIA) is a method to predict the consequences of disruptions to a business, its processes and systems by collecting relevant data.

The primary benefit of using one-time passwords is that an intercepted password cannot be reused, as it is valid only for a single login session or transaction. One-time passwords enhance the security of authentication by preventing replay attacks or password guessing. The other options are not the primary benefits of using one-time passwords. Security for applications can be automated with or without one-time passwords. Users may still have to memorize complex passwords or use a device or software to generate one-time passwords. Users can still be locked out of an account if they enter an incorrect or expired one-time password. References: CISA Review Manual (Digital Version), Chapter 6, Section 6.1

The best approach for an IS auditor to evaluate whether the IT strategy supports the organization’s vision and mission is to meet with senior management to understand the business goals and how IT can enable them. This will help the IS auditor to assess the alignment and integration of IT with the business strategy and to identify any gaps or opportunities for improvement. Reviewing ROIs, KPIs, or feedback from other departments may provide some insights, but they are not sufficient to evaluate the IT strategy. References: IS Audit and Assurance Standards, section “Standard 1201: Engagement Planning”

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 Review Manual (Digital Version)1, Chapter 3, Section 3.2.2

 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 best testing approach to facilitate rapid identification of application interface errors is automated testing. Automated testing is the use of software tools or scripts to execute predefined test cases, compare expected and actual outcomes, and report any discrepancies. Automated testing can help to speed up the testing process, increase test coverage, reduce human errors, and improve test accuracy and consistency. Automated testing can also help to detect interface errors that may occur due to incompatible data formats, communication protocols, or system configurations. References:

CISA Review Manual (Digital Version), Chapter 3, Section 3.3.11

CISA Online Review Course, Domain 2, Module 2, Lesson 1

Information systems governance is the set of policies, processes, structures, and practices that ensure the alignment of IT with business objectives, the delivery of value from IT investments, the management of IT risks, and the optimization of IT resources1. Information systems governance is a strategic and high-level function that covers the entire organization and its IT portfolio. Therefore, an IS auditor should review the aspects of information systems governance that are relevant to the organization’s vision, mission, goals, and strategies.

One of the aspects that an IS auditor should review when evaluating information systems governance for a large organization is the approval processes for new system implementations. This is because new system implementations are significant IT investments that require careful planning, analysis, design, development, testing, deployment, and evaluation to ensure that they meet the business requirements, deliver the expected benefits, comply with the relevant standards and regulations, and minimize the potential risks2. The approval processes for new system implementations should involve the appropriate stakeholders, such as senior management, business owners, IT managers, project managers, users, and auditors, who have the authority and responsibility to approve or reject the proposed system implementations based on predefined criteria and metrics3. The approval processes for new system implementations should also be documented, transparent, consistent, and timely to ensure accountability and traceability4. Therefore, an IS auditor should review the approval processes for new system implementations to assess whether they are aligned with the information systems governance framework and objectives.

The other possible options are:

Procedures for adding a new user to the invoice processing system: This is an operational task that involves granting access rights and permissions to a specific user for a specific system based on the principle of least privilege. This is not a strategic or high-level function that falls under information systems governance. Therefore, an IS auditor should not review this aspect when evaluating information systems governance for a large organization.

Approval processes for updating the corporate website: This is a tactical task that involves making changes or enhancements to the content or design of the corporate website based on the business needs and feedback. This is not a strategic or high-level function that falls under information systems governance. Therefore, an IS auditor should not review this aspect when evaluating information systems governance for a large organization.

Procedures for regression testing system changes: This is a technical task that involves verifying that existing system functionalities are not adversely affected by new system changes or updates. This is not a strategic or high-level function that falls under information systems governance. Therefore, an IS auditor should not review this aspect when evaluating information systems governance for a large organization. References: 1: What is IT Governance? - Definition from Techopedia 2: System Implementation - an overview | ScienceDirect Topics 3: Project Approval Process - Project Management Knowledge 4: 5 Best Practices For A Successful Project Approval Process | Kissflow Project : Principle of Least Privilege (POLP) | Imperva : How to Update Your Website Content - 7 Step Guide | HostGator Blog : What Is Regression Testing? Definition & Best Practices | BrowserStack

Problem management is the best way to enable the organization to resolve the issue of repeated failures of critical data processing services, as it focuses on identifying and eliminating the root causes of incidents and preventing their recurrence. Problem management involves analyzing incidents, performing root cause analysis, finding solutions, implementing changes and documenting lessons learned. Incident management is not the best way to resolve the issue, as it focuses on restoring normal service operation as quickly as possible after an incident occurs, but does not address the underlying causes or prevent future incidents. Service level management is not the best way to resolve the issue, as it focuses on defining, monitoring and reporting on the service levels agreed upon between service providers and customers, but does not address the causes or solutions of incidents. Change management is not the best way to resolve the issue, as it focuses on ensuring that changes are implemented in a controlled and coordinated manner, but does not address the identification or elimination of incidents. References:

: [Problem Management Definition]

: [Incident Management Definition]

: [Service Level Management Definition]

: [Change Management Definition]

: IT Service Management | ISACA

 A disaster recovery plan (DRP) is a set of detailed, documented guidelines that outline a business’ critical assets and explain how the organization will respond to unplanned incidents. Unplanned incidents or disasters typically include cyberattacks, system failures, power outages, natural disasters, equipment failures, or infrastructure damage1. A DRP aims to minimize the impact of a disaster on the business continuity, data integrity, and service delivery of the organization. A DRP also helps the organization recover from a disaster as quickly and efficiently as possible.

A DRP should include steps for obtaining replacement supplies, as this is an essential part of restoring the normal operation of the organization after a disaster. Replacement supplies may include hardware, software, data, network components, office equipment, or other resources that are needed to resume the business functions and processes that were disrupted by the disaster. Obtaining replacement supplies may involve contacting vendors, suppliers, or partners; activating backup or alternative systems; or purchasing or renting new equipment. A DRP should identify the sources, locations, and costs of the replacement supplies, as well as the procedures and responsibilities for acquiring and installing them.

The other three options are not steps that a DRP should include, as they are either part of the pre-disaster planning process or not directly related to the disaster recovery objectives. Assessing and quantifying risk is a step that should be done before creating a DRP, as it helps identify the potential threats and vulnerabilities that could affect the organization and determine the likelihood and impact of each scenario2. Negotiating contracts with disaster planning consultants is also a pre-disaster activity that may help the organization design, implement, test, and maintain a DRP with external expertise and guidance3. Identifying application control requirements is not a step in a DRP, but rather a part of the application development and maintenance process that ensures the quality, security, and reliability of the software applications used by the organization.

Therefore, obtaining replacement supplies is the correct answer.

References:

What is a Disaster Recovery Plan? + Complete Checklist

Risk Assessment - ISACA

Disaster Recovery Planning - ISACA

[Application Controls - ISACA]

Full disk encryption (FDE) is a means of protecting information by encrypting all of the data on a disk, including temporary files, programs, and system files1. FDE is best suited for addressing the risk scenario of physical theft of media on which information is stored, as it prevents unauthorized access to the data even if the device is lost or stolen2. FDE does not prevent data leakage as a result of employees leaving to work for competitors, as they may still have access to the data while using the device or copy the data to another device before leaving. FDE does not prevent noncompliance fines related to storage of regulated information, as it does not ensure that the data is stored in accordance with the applicable laws and regulations. FDE does not prevent unauthorized logical access to information through an application interface, as it does not control the access rights and permissions of users and applications. *References: According to the ISACA IT Audit and Assurance Standards, Guidelines and Tools and Techniques for IS Audit and Assurance Professionals, section 2402 Planning, “The IS audit and assurance professional should identify and assess risk relevant to the area under review.” 3 One of the risk factors to consider is “the sensitivity of information processed, stored or transmitted by the system” 3. FDE is one of the possible controls to mitigate the risk of unauthorized disclosure of sensitive information due to physical theft of media.

 The best phase of the software development life cycle to initiate the discussion of application controls is the application design phase when process functionalities are finalized. Application controls are the policies, procedures, and techniques that ensure the completeness, accuracy, validity, and authorization of data input, processing, output, and storage in an application. Application controls help prevent, detect, or correct errors and fraud in software applications. Examples of application controls include input validation, edit checks, reconciliation, encryption, access control, audit trails, etc.

The application design phase is when the software requirements are translated into a logical and physical design that specifies how the application will look and work. This phase is the best time to discuss application controls because it allows the developers to incorporate them into the design specifications and ensure that they are aligned with the business objectives and user needs. By discussing application controls early in the design phase, the developers can also avoid costly rework or changes later in the development process.

The other phases are not as optimal as the application design phase to initiate the discussion of application controls. A. Business case development phase when stakeholders are identified. The business case development phase is when the feasibility, scope, objectives, benefits, risks, and costs of a software project are defined and evaluated. This phase is important for obtaining stakeholder approval and support for the project, but it is too early to discuss application controls in detail because the software requirements and functionalities are not yet clear or finalized. B. User acceptance testing (UAT) phase when test scenarios are designed. The user acceptance testing phase is when the software is tested by the end-users or stakeholders to verify that it meets their expectations and requirements. This phase is too late to discuss application controls because it is near the end of the development process and any changes or additions to the application controls would require retesting and revalidation of the software. C. Application coding phase when algorithms are developed to solve business problems. The application coding phase is when the software design is translated into executable code using programming languages and tools. This phase is not ideal to discuss application controls because it is after the design phase and any changes or additions to the application controls would require redesigning and recoding of the software.

References:

ISACA, CISA Review Manual, 27th Edition, 2019, p. 2471

ISACA, CISA Review Questions, Answers & Explanations Database - 12 Month Subscription2

What Is Application Control? | McAfee3

What Is Application Lifecycle Management? | Red Hat4

 The best way to help ensure new IT implementations align with enterprise architecture (EA) principles and requirements is to conduct EA reviews as part of the change advisory board (CAB). A CAB is a committee that evaluates and authorizes changes to IT services, such as new IT implementations. By conducting EA reviews as part of the CAB process, the organization can ensure that the proposed changes are consistent with the EA vision, goals, standards, and guidelines. This can help avoid potential conflicts, risks, or inefficiencies that may arise from misaligned IT implementations. Additionally, EA reviews can help identify opportunities for improvement, optimization, or innovation in the IT services.

The other options are not the best ways to help ensure new IT implementations align with EA principles and requirements. Documenting the security view as part of the EA is important, but it does not guarantee that new IT implementations will follow the security requirements or best practices. Considering stakeholder concerns when defining the EA is also essential, but it does not ensure that new IT implementations will meet the stakeholder expectations or needs. Performing mandatory post-implementation reviews of IT implementations is a good practice, but it does not prevent potential issues or problems that may arise from misaligned IT implementations.

References:

5: Change Advisory Board Best Practices: 15+ Industry Leaders Weigh In

6: What Does the Change Advisory Board (CAB) Do?

7: How do I set up an effective change advisory board? - ServiceNow

8: ITIL Change Management - The Role of the Change Advisory Board

 The type of control that is in place when an organization has established hiring policies and procedures designed specifically to ensure network administrators are well qualified is directive. Directive controls are those that guide or direct the actions of individuals or groups to achieve a desired outcome. Directive controls can also help to prevent or reduce the occurrence of undesirable events. Hiring policies and procedures are examples of directive controls that aim to ensure that only qualified and competent personnel are employed to perform IT-related tasks. References:

CISA Review Manual (Digital Version), Chapter 4, Section 4.11

CISA Online Review Course, Domain 1, Module 2, Lesson 12

 The most important thing to assess when conducting a business impact analysis (BIA) is the completeness of critical asset inventory. This is because the critical asset inventory is the basis for identifying and prioritizing the business processes, functions, and resources that are essential for the continuity of operations. The critical asset inventory should include both tangible and intangible assets, such as hardware, software, data, personnel, facilities, contracts, and reputation. The critical asset inventory should also be updated regularly to reflect any changes in the business environment or needs. References:

CISA Review Manual (Digital Version), Chapter 5, Section 5.41

CISA Online Review Course, Domain 3, Module 3, Lesson 12

The best course of action for an IS auditor when an auditee is unable to close all audit recommendations by the time of the follow-up audit is to evaluate the residual risk due to open issues. Residual risk is the risk that remains after the implementation of controls or mitigating actions. Evaluating the residual risk due to open issues can help the IS auditor assess the impact and likelihood of the potential threats and vulnerabilities that have not been addressed by the auditee, as well as the adequacy and effectiveness of the existing controls or mitigating actions. Evaluating the residual risk due to open issues can also help the IS auditor prioritize and communicate the open issues to the auditee and other stakeholders, such as senior management or audit committee, and recommend appropriate actions or escalation procedures.

Ensuring the open issues are retained in the audit results is a course of action for an IS auditor when an auditee is unable to close all audit recommendations by the time of the follow-up audit, but it is not the best one. Ensuring the open issues are retained in the audit results can help the IS auditor document and report the status and progress of the audit recommendations, as well as provide a basis for future follow-up audits. However, ensuring the open issues are retained in the audit results does not provide an analysis or evaluation of the residual risk due to open issues, which is more important for informing decision-making and action-taking.

Terminating the follow-up because open issues are not resolved is not a course of action for an IS auditor when an auditee is unable to close all audit recommendations by the time of the follow-up audit, but rather a consequence or outcome of it. Terminating the follow-up because open issues are not resolved may indicate that the auditee has failed to comply with the agreed-upon actions or deadlines, or that the IS auditor has encountered significant obstacles or resistance from the auditee. Terminating the follow-up because open issues are not resolved may also trigger further actions or sanctions from the IS auditor or other authorities, such as issuing a qualified or adverse opinion, withholding certification, or imposing penalties.

Recommending compensating controls for open issues is not a course of action for an IS auditor when an auditee is unable to close all audit recommendations by the time of the follow-up audit, but rather a possible outcome or result of it. Compensating controls are alternative or additional controls that are implemented to reduce or eliminate the risk associated with a weakness or deficiency in another control. Recommending compensating controls for open issues may be appropriate when the auditee is unable to implement the original audit recommendations due to technical, operational, financial, or other constraints, and when the compensating controls can provide a similar or equivalent level of assurance. However, recommending compensating controls for open issues requires a prior evaluation of the residual risk due to open issues, which is more important for determining whether compensating controls are necessary and feasible.

References:

Follow-up Audits - Canadian Audit and Accountability Foundation 1

Conducting The Audit Follow-Up: When To Verify - The Auditor 2

Internal Audit Follow Ups: Are They Really Worth The Effort

The area that is most likely to be overlooked when implementing a new data classification process is end-user computing (EUC) systems. EUC systems are applications or tools that are developed or customized by end users, often without formal IT involvement or approval. EUC systems may contain sensitive or confidential data that need to be classified and protected according to the organization’s policies and standards. However, EUC systems may not be subject to the same controls, oversight, or documentation as formal IT systems, and may not be included in the scope of the data classification process. Therefore, EUC systems pose a significant risk of data leakage, unauthorized access, or noncompliance. The other areas (B, C and D) are less likely to be overlooked, as they are more visible and manageable by the IT department or the data owners. References: IS Audit and Assurance Guideline 2202: Evidence Collection Techniques, CISA Review Manual (Digital Version), Chapter 5: Protection of Information Assets, Section 5.2: Data Classification

 The internal audit manager should have a reporting line to the audit committee, which is an independent body that oversees the internal audit function and ensures its objectivity and accountability. Reporting functionally to a senior management official may compromise the independence and clarity of the internal audit reporting process, as senior management may have a vested interest in the audit results or influence the audit scope and priorities. *References: According to the ISACA IT Audit and Assurance Standards, Guidelines and Tools and Techniques for IS Audit and Assurance Professionals, section 1002 Independence, “The chief audit executive (CAE) should report functionally to the board or its equivalent (e.g., audit committee) and administratively to executive management.” 1

 The best evidence of an IT strategy correction’s effectiveness is the synchronization of IT activities with corporate objectives. The IT strategy correction is a process of reviewing and adjusting the IT strategy to ensure that it aligns with and supports the corporate strategy and objectives. The synchronization of IT activities with corporate objectives means that the IT activities are consistent with and contribute to the achievement of the corporate goals and vision. The IS auditor can measure and evaluate the IT strategy correction’s effectiveness by comparing the IT activities with the corporate objectives, and assessing whether they are aligned, integrated, and coordinated. The other options are not as good evidence of an IT strategy correction’s effectiveness, because they either do not reflect the alignment of IT and business, or they are inputs or outputs of the IT strategy correction process rather than outcomes or results. References: CISA Review Manual (Digital Version)1, Chapter 1, Section 1.2.1

 A database administrator (DBA) should be prevented from having end user responsibilities to avoid a conflict of interest and a violation of the principle of segregation of duties. End user responsibilities may include initiating transactions, authorizing transactions, recording transactions or reconciling transactions. A DBA who has end user responsibilities may compromise the integrity, confidentiality and availability of the data and the database systems. Accessing sensitive information, having access to production files and using an emergency user ID are not end user responsibilities, but rather potential risks or controls associated with the DBA role. References:

: Database Administrator (DBA) Definition

: Segregation of Duties | ISACA

: [End User Definition]

 Backup procedures for an organization’s critical data are considered to be corrective controls, as they are designed to restore normal operations after a disruption or failure. Corrective controls aim to minimize the impact of an incident and prevent recurrence. Directive, detective and compensating controls are not related to backup procedures. Directive controls are intended to guide or instruct users to follow policies and procedures. Detective controls are intended to identify and report incidents or violations. Compensating controls are intended to mitigate the risk of a missing or ineffective primary control. References: CISA Review Manual (Digital Version), Chapter 2, Section 2.11

The senior auditor’s most appropriate course of action is to have the finding reinstated, because the auditee’s claim of correcting the problem is not sufficient evidence to support the removal of the finding. The auditor should verify that the corrective action has been implemented effectively and that it has resolved the underlying issue or risk. The auditor should also document the evidence and results of the verification in the work papers. The other options are not appropriate, because they either accept the auditee’s claim without verification, delegate the responsibility to the auditee or escalate the issue unnecessarily. References:

ISACA, CISA Review Manual, 27th Edition, chapter 1, section 1.51

ISACA, IT Audit and Assurance Standards, Guidelines and Tools and Techniques for IS Audit and Assurance Professionals, section 12062

The first step in managing the impact of a recently discovered zero-day attack is to identify vulnerable assets. A zero-day attack is a cyberattack that exploits a previously unknown or unpatched vulnerability in a software or system, before the vendor or developer has had time to fix it. Identifying vulnerable assets is crucial for managing the impact of a zero-day attack, because it helps to determine the scope and severity of the attack, prioritize the protection and mitigation measures, and isolate or quarantine the affected assets from further damage or compromise. The other options are not the first steps in managing the impact of a zero-day attack, because they either require more information about the vulnerable assets, or they are part of the subsequent steps of assessing, responding, or recovering from the attack. References: CISA Review Manual (Digital Version)1, Chapter 5, Section 5.2.4

The greatest concern to an IS auditor reviewing an organization’s method to transport sensitive data between offices is that the method relies exclusively on the use of public key infrastructure (PKI). PKI is a set of tools and procedures that are used to create, manage, and revoke digital certificates and public keys for encryption and authentication1. PKI can provide secure and trustworthy communication over the internet, but it also has some limitations and risks that need to be considered.

One of the main limitations of PKI is that it depends on the trustworthiness and security of the certificate authority (CA), which is the entity that issues and verifies the digital certificates2. If the CA is compromised or malicious, it can issue fake or fraudulent certificates that can be used to impersonate legitimate parties or intercept sensitive data. For example, in 2011, a hacker breached the CA DigiNotar and issued hundreds of rogue certificates for domains such as Google, Yahoo, and Microsoft3. This allowed the hacker to conduct man-in-the-middle attacks and spy on the online activities of users in Iran3.

Another limitation of PKI is that it requires a complex and costly infrastructure to maintain and operate. PKI involves multiple components, such as servers, software, hardware, policies, and procedures, that need to be configured, updated, and monitored regularly1. PKI also requires a high level of technical expertise and coordination among different parties, such as users, administrators, CAs, and registration authorities (RAs)1. PKI can be vulnerable to human errors or negligence that can compromise its security or functionality. For example, in 2018, a software bug in Apple’s macOS High Sierra caused the system to accept any certificate as valid without checking its validity period. This could have allowed attackers to use expired or revoked certificates to bypass security checks.

Therefore, an IS auditor should be concerned if an organization relies exclusively on PKI for transporting sensitive data between offices. PKI can provide a high level of security and trust, but it also has some inherent risks and challenges that need to be addressed. An IS auditor should evaluate whether the organization has implemented adequate controls and measures to ensure the reliability and integrity of its PKI system. An IS auditor should also consider whether the organization has alternative or complementary methods for securing its data transmission, such as using symmetric encryption algorithms or digital signatures. Symmetric encryption algorithms use the same key for both encryption and decryption, which can offer faster performance and lower overhead than asymmetric encryption algorithms used by PKI4. Digital signatures use cryptographic techniques to verify the identity and authenticity of the sender and the integrity of the data5.

The quality assurance (QA) phase is the phase where the IS auditor should first examine requirements from an in-house SDLC project that has not met user specifications. This is because the QA phase is the phase where the system is tested and verified against the user specifications and the design specifications to ensure that it meets the functional and non-functional requirements, as well as the quality standards and expectations. The QA phase involves various testing activities, such as unit testing, integration testing, system testing, acceptance testing, performance testing, security testing, etc., to identify and resolve any defects, errors, or deviations from the specifications12.

The configuration phase is not the phase where the IS auditor should first examine requirements from an in-house SDLC project that has not met user specifications. The configuration phase is the phase where the system is installed and configured on the target environment, such as hardware, software, network, etc., to prepare it for deployment and operation. The configuration phase may involve activities such as installation, customization, migration, integration, etc., to ensure that the system is compatible and interoperable with the existing infrastructure and systems34.

The user training phase is not the phase where the IS auditor should first examine requirements from an in-house SDLC project that has not met user specifications. The user training phase is the phase where the end-users are trained and educated on how to use the system effectively and efficiently. The user training phase may involve activities such as developing training materials, conducting training sessions, providing feedback and support, etc., to ensure that the users are familiar and comfortable with the system features and functions56.

The development phase is not the phase where the IS auditor should first examine requirements from an in-house SDLC project that has not met user specifications. The development phase is the phase where the system is coded and built based on the design specifications and the user specifications. The development phase may involve activities such as programming, debugging, documenting, etc., to create a working prototype or a final product of the system

A fire alarm system is a device that detects and alerts people of the presence of fire or smoke in a building. A fire alarm control panel is the central unit that monitors and controls the fire alarm system. The most effective location for the fire alarm control panel would be inside the booth used by the building security personnel. This is because:

The security personnel can quickly and easily access the fire alarm control panel in case of an emergency, and take appropriate actions such as notifying the fire department, evacuating the building, or resetting the system.

The fire alarm control panel can be protected from unauthorized access, tampering, or damage by the security personnel, who can also monitor its status and performance regularly.

The fire alarm control panel can be isolated from the computer room, which may be exposed to higher risks of fire or smoke due to the presence of electrical equipment, such as uninterruptible power supply (UPS) modules or server computers.

The fire alarm control panel can be connected to the computer room through a dedicated communication line, which can ensure reliable and timely transmission of signals and information between the two locations.

References:

[1]: Fire Alarm Control Panel - an overview | ScienceDirect Topics

[2]: Fire Alarm Control Panel - What is it and how does it work? | Fire Protection Online

[3]: Fire Alarm Control Panel Installation Guide - XLS3000 - Honeywell

 The most important process to help ensure the application provides accurate calculations is quality assurance (QA), which involves verifying that the application meets the specified requirements and standards, and testing the application for functionality, performance, reliability, security, and usability. QA helps to identify and correct any defects or errors in the application before it is deployed to the production environment. Key performance indicator (KPI) monitoring, change management, and configuration management are important processes for managing and maintaining the application after it is implemented, but they do not directly ensure the accuracy of the calculations performed by the application. References: CISA Review Manual (Digital Version), Chapter 3: Information Systems Acquisition, Development & Implementation, Section 3.3: Practices for Quality Assurance

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

The primary role of an internal audit function in the management of identified business risks is to validate the enterprise risk management (ERM) process and provide assurance on its effectiveness. The internal audit function should evaluate whether the ERM process is aligned with the organization’s objectives, strategies, policies and culture, and whether it covers all relevant risks and controls. The internal audit function should also assess whether the ERM process is operating as designed and producing reliable and timely information for decision making. The other options are not the primary role of an internal audit function, but rather the responsibilities of senior management, board of directors or risk owners. References:

ISACA, CISA Review Manual, 27th Edition, chapter 1, section 1.41

ISACA, IT Audit and Assurance Standards, Guidelines and Tools and Techniques for IS Audit and Assurance Professionals, section 12072

The best way to verify the effectiveness of a data restoration process is to perform periodic complete data restorations. This is the process of transferring backup data to the primary system or data center and verifying that the restored data is accurate, complete, and functional. By performing periodic complete data restorations, the auditee can test the reliability and validity of the backup data, the functionality and performance of the restoration tools and procedures, and the compatibility and integrity of the restored data with the primary system. This will also help identify and resolve any issues or errors that may occur during the restoration process, such as corrupted or missing files, incompatible formats, or configuration problems.

Performing periodic reviews of physical access to backup media (option A) is not the best way to verify the effectiveness of a data restoration process, as it only ensures the security and availability of the backup media, not the quality or usability of the backup data. Physical access reviews are important for preventing unauthorized access, theft, damage, or loss of backup media, but they do not test the actual restoration process or verify that the backup data can be successfully restored.

Validating offline backups using software utilities (option C) is also not the best way to verify the effectiveness of a data restoration process, as it only checks the integrity and consistency of the backup data, not the functionality or compatibility of the restored data. Software utilities can help detect and correct any errors or inconsistencies in the backup data, such as checksum errors, duplicate files, or incomplete backups, but they do not test the actual restoration process or verify that the restored data can work with the primary system.

Reviewing and updating data restoration policies annually (option D) is also not the best way to verify the effectiveness of a data restoration process, as it only ensures that the policies are current and relevant, not that they are implemented and followed. Data restoration policies are important for defining roles and responsibilities, objectives and scope, standards and procedures, and metrics and reporting for the restoration process, but they do not test the actual restoration process or verify that it meets the expected outcomes.

Therefore, option B is the correct answer.

References:

What is backup and disaster recovery? | IBM

Backup and Recovery of Data: The Essential Guide | Veritas

Database Backup and Recovery Best Practices - ISACA

A backlog consumption report is a report that shows the amount of work that has been completed and the amount of work that remains to be done in a project. It is a useful tool for measuring the progress and performance of a web-based customer service application development project, as it can indicate whether the project is on track, ahead or behind schedule, and how much effort is required to finish the project. A backlog consumption report can also help identify any issues or risks that may affect the project delivery. Critical path analysis reports, developer status reports and change management logs are also helpful for evaluating a project, but they are not as helpful as a backlog consumption report, as they do not provide a clear picture of the overall project status and completion rate. References:

: [Backlog Consumption Report Definition]

: Backlog Consumption Report | ISACA

The charging method for IS resources is the way that the IS function allocates its costs to the users or business units that consume its services. The charging method can affect the behavior and incentives of the users and the IS function, as well as the efficiency and effectiveness of the IS resources. Therefore, choosing an appropriate charging method is an important decision for the IS function and its stakeholders.

One of the possible charging methods is to charge specific costs that can be tied back to specific usage. This means that the IS function tracks and measures the actual consumption of each user or business unit for each IS service, and charges them accordingly. For example, if a user uses 10 GB of storage space, 5 hours of CPU time, and 100 MB of network bandwidth, the IS function will charge them based on the unit costs of these resources. This charging method has the advantage of encouraging the most efficient use of IS resources, as it provides clear and accurate feedback to the users about their consumption and costs, and motivates them to optimize their usage and avoid waste or overuse. This charging method also aligns the interests of the IS function and the users, as both parties benefit from reducing costs and improving efficiency.

The other possible charging methods are:

Total utilization to achieve full operating capacity: This means that the IS function charges a fixed amount to each user or business unit based on their proportion of the total operating capacity of the IS resources. For example, if a user or business unit has 10% of the total computing power allocated to them, they will pay 10% of the total IS costs. This charging method has the disadvantage of discouraging efficient use of IS resources, as it does not reflect the actual consumption or usage of each user or business unit, and does not provide any incentive to reduce costs or improve efficiency. This charging method also creates a mismatch between the interests of the IS function and the users, as the IS function benefits from increasing costs and capacity, while the users bear the burden of paying for them.

Residual income in excess of actual incurred costs: This means that the IS function charges a markup or profit margin on top of its actual incurred costs to each user or business unit. For example, if a user or business unit consumes $100 worth of IS resources, the IS function will charge them $120, where $20 is the residual income for the IS function. This charging method has the disadvantage of discouraging efficient use of IS resources, as it increases the costs for the users and reduces their value for money. This charging method also creates a conflict between the interests of the IS function and the users, as the IS function benefits from increasing costs and profits, while the users suffer from paying more than they should.

Allocations based on the ability to absorb charges: This means that the IS function charges different amounts to different users or business units based on their ability to pay or their profitability. For example, if a user or business unit is more profitable or has a higher budget than another user or business unit, they will pay more for the same amount of IS resources. This charging method has the disadvantage of discouraging efficient use of IS resources, as it does not reflect the actual consumption or usage of each user or business unit, and does not provide any incentive to reduce costs or improve efficiency. This charging method also creates an unfair and arbitrary distribution of costs among the users or business units, as some pay more than others for no valid reason. References: 1: Charging Methods for IT Services - IT Process Wiki 2: IT Chargeback Methods - CIO Wiki 3: IT Chargeback - Wikipedia

 The use of control totals satisfies the control objective of processing integrity. Processing integrity refers to the accuracy, completeness, timeliness, and validity of data processing. Control totals are a method of verifying the correctness of data processing by comparing the total value or count of a batch of transactions before and after processing. For example, if a batch of 100 invoices is entered into an accounting system, the total amount and number of invoices should match before and after processing. If there is a discrepancy, it indicates an error in data entry, transmission, or processing. Control totals help to ensure that no transactions are lost, duplicated, or altered during processing.

References:

Control Objectives & Activities: Examples, Appropriateness

Levels and Types of Control | Principles of Management

CISA Review Manual 27th Edition, page 337

 The best way to reduce the immediate risk associated with using an unsupported version of the software is to segregate the outdated software system from the main network. This will limit the exposure of the system to potential attacks and prevent it from compromising other systems on the network. Segregating the system will also reduce the impact of any security incidents that may occur on the system.

Monitoring network traffic attempting to reach the outdated software system (option C) is not the best way to reduce the risk, as it will not prevent or stop any attacks on the system. It will only provide visibility into the network activity and alert the auditee of any suspicious or malicious traffic.

Verifying all patches have been applied to the software system’s outdated version (option A) and closing all unused ports on the outdated software system (option B) are also not the best ways to reduce the risk, as they will not address the underlying issue of using an unsupported version of the software. Patches and ports may still have vulnerabilities that are not fixed by the vendor, and attackers may exploit them to gain access to the system.

Therefore, option D is the correct answer.

References:

Introduction (Part 1 of 7: Mitigating Risks of Unsupported Operating Systems)

Summary (Part 7 of 7: Mitigating Risks of Unsupported Operating Systems)

Upgrade, Retire, or Replace Unsupported Software (Part 4 of 7: Mitigating Risks of Unsupported Operating Systems)

The most important thing to define within a disaster recovery plan (DRP) is the roles and responsibilities for recovery team members, as this ensures that everyone knows what to do, who to report to, and how to communicate in the event of a disaster. A business continuity plan (BCP) is a broader document that covers the overall strategy and objectives for maintaining or resuming business operations after a disaster. Test results for backup data restoration are important to verify the integrity and availability of backup data, but they are not part of the DRP itself. A comprehensive list of disaster recovery scenarios and priorities is useful to identify the potential risks and impacts of different types of disasters, but it is not as critical as defining the roles and responsibilities for recovery team members. References: CISA Review Manual (Digital Version), Chapter 4: Information Systems Operations, Maintenance and Service Management, Section 4.3: Disaster Recovery Planning1

 The most important thing for an IS auditor to verify when reviewing the use of an outsourcer for disposal of storage media is that the vendor’s process appropriately sanitizes the media before disposal. As explained in the previous question, storage media may contain sensitive or confidential information that needs to be protected from unauthorized access, disclosure, or misuse. The IS auditor should verify that the vendor has a process that appropriately sanitizes the media before disposal, such as wiping, degaussing, shredding, or incinerating, and that the process is effective and compliant with the organization’s policies and standards. The other options are not as important as verifying the vendor’s process, because they either do not ensure the security and privacy of the information on the media, or they are secondary to the vendor’s process. References: CISA Review Manual (Digital Version)1, Chapter 5, Section 5.2.7

 A primary responsibility of an IT steering committee is prioritizing IT projects in accordance with business requirements, as this ensures that IT resources are allocated to support the strategic objectives and needs of the organization. Reviewing periodic IT risk assessments, validating and monitoring the skill sets of IT department staff, and establishing IT budgets for the business are important activities, but they are not the primary responsibility of an IT steering committee. They may be delegated to other IT governance bodies or functions within the organization. References: CISA Review Manual (Digital Version), Chapter 1: Information Systems Auditing Process, Section 1.2: IT Governance

 An IT balanced scorecard is primarily used for measuring IT strategic performance. An IT balanced scorecard is a framework that translates the IT strategy into measurable objectives, indicators, targets, and initiatives across four perspectives: financial, customer, internal process, and learning and growth. An IT balanced scorecard helps to monitor and evaluate how well the IT function is delivering value to the organization, achieving its strategic goals, and improving its capabilities and competencies. The other options are not the primary uses of an IT balanced scorecard, because they either focus on specific aspects of IT rather than the overall performance, or they are not directly related to the IT strategy. References: CISA Review Manual (Digital Version)1, Chapter 1, Section 1.2.3

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 its compliance 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 passwords are 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

An incident response team has been notified of a virus outbreak in a network subnet. The next step should be to focus on limiting the damage by containing the virus and preventing it from spreading further. This may involve isolating the affected systems, disconnecting them from the network, blocking malicious traffic or applying patches or antivirus updates. Verifying that the compromised systems are fully functional, documenting the incident and removing and restoring the affected systems are possible steps that could be taken after limiting the damage. References:

: [Incident Response Definition]

: [Incident Response Process | ISACA]

: [Virus Definition]

 A configuration management system is a process that establishes and maintains the consistency of a product’s attributes throughout its life cycle. It helps to identify and control the functional and physical characteristics of a product, and to record and report any changes to those characteristics. A configuration management system also supports the audit of the product to verify its conformance to requirements.

One of the key activities of a configuration management system is to define baselines for software. A baseline is a fixed reference point that serves as a basis for comparison and measurement. A baseline can be established for any configuration item, such as a requirement, a design document, a test plan, or a software component. A baseline helps to ensure that the software product meets its intended purpose and quality standards, and that any changes to the software are controlled and documented.

A configuration management system also supports other activities, such as tracking software updates, supporting the release procedure, and standardizing change approval, but these are not its primary purpose. Therefore, the other options are incorrect.

References: : What is configuration management - Red Hat : Configuration Management | Definition, Importance & Benefits - ServerWatch

An IS auditor’s primary concern would be whether the recovery site devices can handle the storage requirements. The storage requirements are determined by the amount and type of data that needs to be backed up and restored in case of a disaster at the primary data center. The recovery site devices should have enough capacity, performance, reliability, and compatibility to meet these requirements.

If the recovery site devices cannot handle the storage requirements, then there is a risk that some data may not be backed up properly or may not be available for recovery when needed. This could result in data loss, corruption, or inconsistency, which could affect the business continuity and integrity of the organization.

Therefore, an IS auditor should verify that:

The recovery site devices have sufficient storage space to accommodate all the data that needs to be backed up from the primary data center.

The recovery site devices have adequate bandwidth and speed to transfer and access data efficiently and effectively.

The recovery site devices have appropriate security features and controls to protect data from unauthorized access or modification.

The recovery site devices are compatible with the primary data center devices in terms of hardware, software, format, and protocol.

References:

10: What Is a Disaster Recovery Site? Hot, Cold & Warm Site

11: Disaster recovery site - What is the ideal distance to mitigate risks? - Advisera

12: Offsite Data Backup Storage vs Disaster Recovery (DR) - LINBIT

The first step when planning an IS audit of a third-party service provider that monitors network activities is to review the roles and responsibilities of the third-party provider. This will help to establish the scope, objectives, and expectations of the audit, as well as to identify any potential risks, issues, or gaps in the service level agreement (SLA) between the organization and the provider. Reviewing the third party’s monitoring logs and incident handling, evaluating the organization’s third-party monitoring process, and determining if the organization has a secure connection to the provider are important steps, but they should be performed after reviewing the roles and responsibilities of the provider. References: CISA Review Manual (Digital Version)1, page 269.

The finding that should be of most concern to an IS auditor when evaluating information security governance within an organization is that the data center manager has final sign-off on security projects. This indicates a lack of segregation of duties and a potential conflict of interest between the operational and security roles. The data center manager may have access to sensitive information or systems that should be protected by security controls, or may influence or override security decisions that are not in the best interest of the organization. This finding also suggests that there is no clear accountability or authority for information security governance at a higher level, such as senior management or board of directors. The other findings are not as concerning as this one, although they may indicate some areas for improvement or monitoring. References:

ISACA, CISA Review Manual, 27th Edition, chapter 5, section 5.11

ISACA, IT Governance Using COBIT and Val IT: Student Booklet - 2nd Edition4

The best way to sanitize a hard disk for reuse to ensure the organization’s information cannot be accessed is data wiping. Data wiping is a process that overwrites the data on the hard disk with random or meaningless patterns, making it unrecoverable by any software or hardware methods. Data wiping can provide a high level of security and assurance that the organization’s information is permanently erased from the hard disk, and that it cannot be accessed by unauthorized parties or malicious actors.

Re-partitioning is not a way to sanitize a hard disk for reuse, but rather a way to organize the hard disk into different logical sections or volumes. Re-partitioning does not erase the data on the hard disk, but only changes the structure and allocation of the disk space. Re-partitioning may make the data inaccessible to the operating system, but not to other tools or methods that can scan or recover the data from the disk sectors.

Degaussing is a way to sanitize a hard disk for reuse, but only for magnetic hard disks, not solid state drives (SSDs). Degaussing is a process that exposes the hard disk to a strong magnetic field, which disrupts and destroys the magnetic alignment of the data on the disk platters. Degaussing can effectively erase the data on magnetic hard disks, but it can also damage or render unusable the electronic components of the hard disk, such as the read/write heads or circuit boards. Degaussing also does not work on SSDs, which store data using flash memory cells, not magnetic media.

Formatting is not a way to sanitize a hard disk for reuse, but rather a way to prepare the hard disk for use by an operating system. Formatting is a process that creates a file system on the hard disk, which defines how the data is stored and accessed on the disk. Formatting does not erase the data on the hard disk, but only deletes the file system metadata and marks the disk space as available for new data. Formatting may make the data invisible to the operating system, but not to other tools or methods that can restore or recover the data from the disk sectors.

References:

How to Wipe A Hard Drive for Reuse? Check the Quickest Way to Wipe A Hard Drive - EaseUS 1

HP PCs - Using Secure Erase or HP Disk Sanitizer 2

HOW to QUICKLY and PERMANENTLY SANITIZE ANY DRIVE (SSD, USB thumb drive …) 

The use of access control lists (ACLs) is the most effective method to mitigate security risk for routers because they can limit Telnet and traffic from the open Internet. Telnet is a protocol that allows remote access to a device, which can pose a security threat if not properly controlled. Traffic from the open Internet can also contain malicious packets that can harm the network or the router itself. ACLs act as filters that can block or allow specific types of traffic based on predefined criteria, such as source and destination addresses, protocols, ports, and flags. By using ACLs, routers can prevent unauthorized access and reduce the exposure to potential attacks.

References:

Protecting Your Core: Infrastructure Protection Access Control Lists

Definition, purposes, benefits, and functions of ACL

CISA Review Manual 27th Edition, page 336

A digital signature is a specific type of e-signature that is backed by a digital certificate. A digital certificate is a document that contains the public key of a signer and is issued by a trusted third party called a certificate authority (CA). A digital signature provides proof of the identity of the signer and the integrity of the signed document.

A characteristic of a digital signature is that it is unique to the message. This means that a digital signature cannot be copied from one document to another without being detected as invalid. A digital signature is created by applying a mathematical function called a hashing algorithm to the document. A hashing algorithm produces a fixed-length output called a hash or digest from any input data. The hash is unique to the input data; any change in the input data will result in a different hash.

The signer then encrypts the hash with their private key (a secret key that only they know) to create the digital signature. The encrypted hash is attached to the document as the digital signature. The recipient of the document can verify the digital signature by decrypting it with the signer’s public key (a key that is publicly available and matches the private key) to obtain the hash. The recipient then applies the same hashing algorithm to the document to generate another hash. The recipient then compares the two hashes; if they match, it means that the document has not been altered and that the signer is authentic.

Therefore, a digital signature is unique to the message because it is derived from the hash of the message, which is unique to the message.

References:

7: Free Online Signature Generator (Type or Draw) | Signaturely

8: What are digital signatures and certificates? | Acrobat Sign - Adobe

9: eSign PDF with Electronic Signature Free Online - Smallpdf

A vendor requires privileged access to a key business application. The best recommendation to reduce the risk of data leakage is to implement real-time activity monitoring for privileged roles. This is because real-time activity monitoring can provide visibility and accountability for the actions performed by the vendor with privileged access, such as creating, modifying, deleting, or copying data. Real-time activity monitoring can also enable timely detection and response to any unauthorized or suspicious activities that may indicate data leakage. Including the right-to-audit in the vendor contract is a good practice, but it may not be sufficient to prevent or detect data leakage in a timely manner, as audits are usually performed periodically or on-demand. Performing a review of privileged roles and responsibilities is also a good practice, but it may not address the specific risk of data leakage by the vendor with privileged access. Requiring the vendor to implement job rotation for privileged roles may reduce the risk of collusion or fraud, but it may not prevent or detect data leakage by any individual with privileged access. References: CISA Review Manual (Digital Version), [ISACA Privacy Principles and Program Management Guide]

The best way to detect unauthorized copies of licensed software on systems is to conduct periodic software scanning. Software scanning is a process of using specialized tools or programs to scan the systems and identify the software installed, the license status, the usage, and the compliance with the software policies and agreements. Software scanning can help to detect any unauthorized, unlicensed, or illegal copies of software on the systems, as well as any discrepancies or violations of the software licenses. Software scanning can also help to optimize the software inventory, reduce the software costs, and improve the security and performance of the systems12.

Some examples of software scanning tools are:

Microsoft Software Inventory Analyzer (MSIA): A free tool that scans Windows-based computers and servers and generates reports on the Microsoft products installed, such as operating systems, applications, and updates3.

Belarc Advisor: A free tool that scans Windows-based computers and generates reports on the hardware and software installed, including license keys, versions, usage, and security status4.

Lansweeper: A paid tool that scans Windows, Linux, Mac, and other network devices and generates reports on the hardware and software inventory, license compliance, configuration, and vulnerabilities5.

To conduct periodic software scanning, you need to:

Choose a suitable software scanning tool that meets your needs and budget.

Define the scope and frequency of the software scanning, such as which systems to scan, how often to scan, and what information to collect.

Configure and run the software scanning tool according to the instructions and settings.

Review and analyze the software scanning reports and identify any unauthorized copies of licensed software on the systems.

Take appropriate actions to remove or regularize the unauthorized copies of licensed software on the systems.

Document and report the results and findings of the software scanning.

The finding that should be ranked as the highest risk is that network penetration tests are not performed. Network penetration tests are simulated cyberattacks that aim to identify and exploit the vulnerabilities and weaknesses of the network security controls, such as firewalls, routers, switches, servers, and devices. Network penetration tests are essential for assessing the effectiveness and resilience of the network security posture, and for providing recommendations for improvement and remediation. If network penetration tests are not performed, the organization may not be aware of the existing or potential threats and risks to its network, and may not be able to prevent or respond to real cyberattacks, which can result in data breaches, service disruptions, financial losses, reputational damage, and legal or regulatory penalties. The other findings are also important, but not as risky as the lack of network penetration tests, because they either do not directly affect the network security controls, or they can be addressed by documentation or approval processes. References: CISA Review Manual (Digital Version)1, Chapter 5, Section 5.2.4

The most useful metric for management to consider when reviewing a project portfolio is the net present value (NPV) of the portfolio. NPV is a measure of the profitability and value of a project or a portfolio of projects, taking into account the time value of money and the expected cash flows. NPV compares the present value of the future cash inflows with the present value of the initial investment and shows how much value is created or lost by undertaking a project or a portfolio of projects1. A positive NPV indicates that the project or portfolio is worth more than its cost and will generate a positive return on investment. A negative NPV indicates that the project or portfolio is worth less than its cost and will result in a loss. Therefore, NPV helps management to prioritize and select the most profitable and valuable projects or portfolios that align with the organizational strategy and objectives2. The other options are less useful or incorrect because:

A. Cost of projects divided by total IT cost is not a useful metric for reviewing a project portfolio, as it does not reflect the benefits, value, or return of the projects. It only shows the proportion of IT budget allocated to the projects, which may not be indicative of their strategic importance or alignment3.

B. Expected return divided by total project cost is not a useful metric for reviewing a project portfolio, as it does not account for the time value of money and the timing of cash flows. It only shows the average return per unit of cost, which may not be comparable across different projects or portfolios with different durations, risks, and cash flow patterns4.

D. Total cost of each project is not a useful metric for reviewing a project portfolio, as it does not reflect the benefits, value, or return of the projects. It only shows the initial investment required for each project, which may not be indicative of their profitability or viability5. References: Portfolio, Program and Project Management Using COBIT 5 - ISACA, Project Portfolio Management - ISACA, CISA Review Manual (Digital Version), Standards, Guidelines, Tools and Techniques

 The most critical finding for an IS auditor following up on a recent security incident is that the security weakness facilitating the attack was not identified. This finding indicates that the root cause of the incident was not analyzed, and the vulnerability that allowed the attack to succeed was not remediated. This means that the organization is still exposed to the same or similar attacks in the future, and its security posture has not improved. Identifying and addressing the security weakness is a key step in the incident response process, as it helps to prevent recurrence, mitigate impact, and improve resilience.

The other findings are not as critical as the failure to identify the security weakness, but they are still important issues that should be addressed by the organization. The attack was not automatically blocked by the intrusion detection system (IDS) is a finding that suggests that the IDS was not configured properly, or that it did not have the latest signatures or rules to detect and prevent the attack. The attack could not be traced back to the originating person is a finding that implies that the organization did not have sufficient logging, monitoring, or forensic capabilities to identify and attribute the attacker. Appropriate response documentation was not maintained is a finding that indicates that the organization did not follow a consistent and formal incident response procedure, or that it did not document its actions, decisions, and lessons learned from the incident.

References:

ISACA CISA Review Manual 27th Edition (2019), page 254

Incident Response Process - ISACA1

Incident Response: How to Identify and Fix Security Weaknesses

Water sensors are devices that can detect the presence of water or moisture in a given area. They are often deployed below the floor tiles of a data center to monitor for any water leaks that may damage the equipment or cause electrical hazards. Water sensors can alert the data center staff or trigger an automatic response to prevent or mitigate the water leakage.

The other options are not likely to be deployed below the floor tiles of a data center. Temperature sensors and humidity sensors are usually deployed above the floor tiles to measure the ambient conditions of the data center and ensure optimal cooling and ventilation. Air pressure sensors are typically deployed at the air vents or ducts to monitor the airflow and pressure distribution in the data center.

References:

Data Center Environmental Monitoring

Water Detection in Data Centers

The first thing that an IS auditor should do when management responses to an in-person internal control questionnaire indicate a key internal control is no longer effective is to ascertain the existence of other compensating controls. Compensating controls are alternative controls that provide reasonable assurance of achieving the same objective as the original control. The IS auditor should verify whether there are any compensating controls in place that can mitigate the risk of the key control being ineffective, and evaluate their adequacy and effectiveness. The other options are not the first steps, because they either require more information about the compensating controls, or they are actions to be taken after identifying and assessing the compensating controls. References: CISA Review Manual (Digital Version)1, Chapter 2, Section 2.2.3

The best control to mitigate attacks that redirect Internet traffic to an unauthorized website is to perform domain name system (DNS) server security hardening. DNS servers are responsible for resolving domain names into IP addresses, and they are often targeted by attackers who want to manipulate or spoof DNS records to redirect users to malicious websites4. By applying security best practices to DNS servers, such as encrypting DNS traffic, implementing DNSSEC, restricting access and updating patches, the organization can reduce the risk of DNS hijacking attacks. A network-based firewall, user security awareness training and a strong password policy are also important controls, but they are not as effective as DNS server security hardening in preventing this specific type of attack. References:

CISA Review Manual, 27th Edition, page 4021

CISA Review Questions, Answers & Explanations Database - 12 Month Subscription

One of the challenges in developing a SLA for network services is finding performance metrics that can be measured properly and reflect the quality of service expected by the customer. Establishing a well-designed framework for network services is not a challenge, but a good practice. Ensuring that network components are not modified by the client or reducing the number of entry points into the network are security issues, not SLA issues. References: ISACA, CISA Review Manual, 27th Edition, 2018, page 333

 The primary benefit of information asset classification is that it enables risk management decisions. Information asset classification helps to identify the value, sensitivity and criticality of information assets, and to determine the appropriate level of protection and controls required for them. This facilitates risk assessment and risk treatment processes, and ensures that information assets are aligned with business objectives and regulatory requirements. Preventing loss of assets, helping to align organizational objectives or facilitating budgeting accuracy are secondary benefits of information asset classification, but not the main purpose. References: ISACA, CISA Review Manual, 27th Edition, 2018, page 300

The best way to enforce the principle of least privilege on a server containing data with different security classifications is to apply access controls determined by the data owner. The principle of least privilege states that users should only have the minimum level of access required to perform their tasks. The data owner is the person who has the authority and responsibility to classify, label, and protect the data according to its sensitivity and value. The data owner can define the access rights and permissions for each user or role based on the data classification policy and the business needs. This will ensure that only authorized and appropriate users can access the data and prevent unauthorized or excessive access that could compromise the confidentiality, integrity, or availability of the data. References:

CISA Review Manual (Digital Version)

CISA Questions, Answers & Explanations Database

 The most important thing for an IS auditor to confirm when reviewing an organization’s plans to implement robotic process automation (RPA) to automate routine business tasks is that the end-to-end process is understood and documented. This is because RPA involves the use of software robots or digital workers to mimic human actions and execute predefined rules and workflows. Therefore, it is essential that the IS auditor verifies that the organization has a clear and accurate understanding of the current state of the process, the desired state of the process, the inputs and outputs, the exceptions and errors, the roles and responsibilities, and the performance measures12. Without a proper documentation of the end-to-end process, the organization may face challenges in designing, developing, testing, deploying, and monitoring the RPA solution3. References: 1: CISA Review Manual (Digital Version), Chapter 4: Information Systems Operations and Business Resilience, Section 4.2: IT Service Delivery and Support, page 211 2: CISA Online Review Course, Module 4: Information Systems Operations and Business Resilience, Lesson 4.2: IT Service Delivery and Support 3: ISACA Journal Volume 5, 2019, Article: Robotic Process Automation: Benefits, Risks and Controls

 In a controlled application development environment, the most important segregation of duties should be between the person who implements changes into the production environment and the application programmer. This segregation of duties ensures that no one person can create and deploy code without proper review, testing, and approval. This reduces the risk of errors, fraud, or malicious code being introduced into the production environment.

The other options are not as important as the segregation between the application programmer and the person who implements changes into production, but they are still relevant for achieving a secure and reliable application development environment. The segregation of duties between the person who implements changes into production and the systems programmer is important to prevent unauthorized or untested changes to system software or configuration. The segregation of duties between the person who implements changes into production and the computer operator is important to prevent unauthorized or uncontrolled access to production data or resources. The segregation of duties between the person who implements changes into production and the quality assurance (QA) personnel is important to ensure independent verification and validation of code quality and functionality.

References:

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

Segregation of Duties in an Agile Environment | AKF Partners3

Separation of Duties: How to Conform in a DevOps World4

 The greatest concern for an IS auditor when a post-implementation review was conducted by issuing a survey to users is that the survey questions did not address the scope of the business case. A post-implementation review is a process of evaluating the outcomes and benefits of a project after it has been completed and implemented. A post-implementation review can help to assess whether the project met its objectives, delivered its expected value, and satisfied its stakeholders1. A survey is a method of collecting feedback and opinions from users or other stakeholders about their experience and satisfaction with the project. A survey can help to measure the user acceptance, usability, and functionality of the project deliverables2. A business case is a document that justifies the need for a project based on its expected benefits, costs, risks, and alternatives. A business case defines the scope, objectives, and requirements of the project and provides a basis for its approval and initiation3. Therefore, an IS auditor should be concerned if the survey questions did not address the scope of the business case, as it may indicate that the post-implementation review was not comprehensive, relevant, or aligned with the project goals. The other options are less concerning or incorrect because:

A. The survey results were not presented in detail to management is not a great concern for an IS auditor when a post-implementation review was conducted by issuing a survey to users, as it is more of a communication or reporting issue than an audit issue. While presenting the survey results in detail to management may help to inform them about the project performance and outcomes, it does not affect the validity or quality of the post-implementation review itself.

C. The survey form template did not allow additional feedback to be provided is not a great concern for an IS auditor when a post-implementation review was conducted by issuing a survey to users, as it is more of a design or format issue than an audit issue. While allowing additional feedback to be provided may help to capture more insights or suggestions from users, it does not affect the validity or quality of the post-implementation review itself.

D. The survey was issued to employees a month after implementation is not a great concern for an IS auditor when a post-implementation review was conducted by issuing a survey to users, as it is more of a timing or scheduling issue than an audit issue. While issuing the survey to employees sooner after implementation may help to collect more accurate and timely feedback from users, it does not affect the validity or quality of the post-implementation review itself. References: Post Implementation Review - ISACA, Survey - ISACA, Business Case - ISACA

The greatest concern for an IS auditor reviewing a network printer disposal process is that evidence is not available to verify printer hard drives have been sanitized prior to disposal. This can expose sensitive data to unauthorized parties and cause data breaches. Disposal policies and procedures not being consistently implemented or business units being allowed to dispose printers directly to vendors are compliance issues, but not as critical as data protection. Inoperable printers being stored in an unsecured area is a physical security issue, but not as severe as data leakage. References: ISACA, CISA Review Manual, 27th Edition, 2018, page 387

 The most effective control to protect information assets in a data center from theft by a vendor is to monitor and restrict vendor activities. A vendor may have legitimate access to the data center for maintenance or support purposes, but they may also have malicious intentions or be compromised by an attacker. By monitoring and restricting vendor activities, the organization can ensure that the vendor only performs authorized tasks and does not access or tamper with sensitive data or equipment. Issuing an access card to the vendor, concealing data devices and information labels, and restricting use of portable and wireless devices are also useful controls, but they are not as effective as monitoring and restricting vendor activities in preventing theft by a vendor. References:

CISA Review Manual, 27th Edition, page 3381

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The most critical factor for the effective implementation of IT governance is a supportive corporate culture. A supportive corporate culture is one that fosters collaboration, communication and commitment among all stakeholders involved in IT governance processes. A supportive corporate culture also promotes a shared vision, values and goals for IT governance across the organization. Strong risk management practices, internal auditor commitment or documented policies are important elements for IT governance implementation, but they are not sufficient without a supportive corporate culture. References: ISACA, CISA Review Manual, 27th Edition, 2018, page 41

 The most important thing for an IS auditor to determine during the detailed design phase of a system development project is that acceptance test criteria have been developed. Acceptance test criteria define the expected functionality, performance and quality of the system, and are used to verify that the system meets the user requirements and specifications. The IS auditor should ensure that the acceptance test criteria are clear, measurable and agreed upon by all stakeholders. Program coding standards have been followed is something that the IS auditor should check during the coding or testing phase, not the detailed design phase. Data conversion procedures have been established or the design has been approved by senior management are things that the IS auditor should verify during the implementation phase, not the detailed design phase. References: ISACA, CISA Review Manual, 27th Edition, 2018, page 323

This means that the organization should obtain the source code from the escrow agent and compare it with the current version of the application that they are using. The organization should then identify and apply any changes or updates that are missing or different in the escrow version, so that it matches the current version. This way, the organization can ensure that they have a complete and accurate copy of the source code that reflects their current needs and requirements.

Bringing the escrow version up to date can help the organization to avoid or reduce the risks and costs associated with using an outdated or incompatible version of the source code. For example, an older version of the source code may have bugs, errors, or vulnerabilities that could affect the functionality, security, or performance of the application. An older version of the source code may also lack some features, enhancements, or integrations that could improve the usability, efficiency, or value of the application. An older version of the source code may also not comply with some standards, regulations, or contracts that could affect the quality, reliability, or legality of the application1.

The other options are not as good as bringing the escrow version up to date for the organization. Option A, analyzing a new application that meets the current requirements, is a possible option but it may be more time-consuming, expensive, and risky than updating the existing application. The organization may have to go through a complex and lengthy process of selecting, acquiring, implementing, testing, and migrating to a new application, which could disrupt their operations and performance. The organization may also have to deal with compatibility, interoperability, or data quality issues when switching to a new application2. Option B, performing an analysis to determine the business risk, is a necessary step but not a recommendation for the organization. The organization should already be aware of the business risk of using an application whose vendor has gone out of business and whose escrow has an older version of the source code. The organization should focus on finding and implementing a solution to mitigate or eliminate this risk3. Option D, developing a maintenance plan to support the application using the existing code, is not a feasible option because it assumes that the organization has access to the existing code. However, this is not the case because the vendor has gone out of business and the escrow has an older version of the source code. The organization cannot support or maintain an application without having a complete and accurate copy of its source code.

References:

How Important Is Source Code Escrow - ISACA1

The What and Why of Source Code Escrow2

Unlocking Source Code In Escrow 2023: A Guide To Secure Software3

The finding that should be of greatest concern to the IS auditor is that user accounts are shared between users. User accounts are unique identifiers that grant access to an organization’s financial business application based on the roles and responsibilities of the users. User accounts should be individualized and personalized to ensure accountability, traceability, and auditability of user actions and transactions. User accounts should not be shared between users, because this can compromise the confidentiality, integrity, and availability of the financial data and systems, and can enable unauthorized or fraudulent activities. If user accounts are shared between users, the IS auditor may not be able to determine who performed what action or transaction, or whether the user had the appropriate authorization or approval. The other findings are also concerning, but not as much as user account sharing, because they either affect the password strength or frequency rather than the user identity, or they relate to monitoring rather than controlling user access. References: CISA Review Manual (Digital Version)1, Chapter 5, Section 5.2.2

The greatest risk associated with the situation of business units purchasing cloud-based applications without IT support is that the applications may not reasonably protect data. Cloud-based applications are software applications that run on the internet, rather than on a local device or network. Cloud-based applications offer many benefits, such as scalability, accessibility, and cost-effectiveness, but they also pose many challenges and risks, especially for data security1.

Data security is the process of protecting data from unauthorized access, use, modification, disclosure, or destruction. Data security is essential for ensuring the confidentiality, integrity, and availability of data, as well as complying with legal and regulatory requirements. Data security is especially important for cloud-based applications, as data are stored and processed on remote servers that are owned and managed by third-party cloud service providers (CSPs)2.

When business units purchase cloud-based applications without IT support, they may not be aware of or follow the best practices and standards for data security in the cloud. They may not perform adequate risk assessments, vendor evaluations, contract reviews, or audits to ensure that the CSPs and the applications meet the organization’s data security policies and expectations. They may not implement appropriate data encryption, backup, recovery, or disposal methods to protect the data in transit and at rest. They may not monitor or control the access and usage of the data by internal or external users. They may not report or respond to any data breaches or incidents that may occur3.

These actions or inactions may expose the organization’s data to various threats and vulnerabilities in the cloud, such as cyberattacks, human errors, malicious insiders, misconfigurations, or legal disputes. These threats and vulnerabilities may result in data loss, leakage, corruption, or compromise, which may have serious consequences for the organization’s reputation, operations, performance, compliance, and liability4.

Therefore, it is essential that business units consult and collaborate with IT support before purchasing any cloud-based applications, and follow the organization’s guidelines and procedures for cloud security. IT support can help business units to select and use cloud-based applications that are suitable and secure for their needs and objectives.

References:

Top 5 Risks With Cloud Software and How to Mitigate Them4

Mitigate risks and secure your cloud-native applications3

12 Risks, Threats & Vulnerabilities in Moving to the Cloud2

Best Practices to Manage Risks in the Cloud1

 A system electronic log is the most useful source of information for an IS auditor to review all access attempts to a video-monitored and proximity card-controlled communications room. A system electronic log can provide accurate and detailed records of the date, time, card number, and status (success or failure) of each access attempt. A system electronic log can also be easily searched, filtered, and analyzed by the auditor to identify any unauthorized or suspicious access attempts.

A manual sign-in and sign-out log is not as reliable or useful as a system electronic log, because it depends on the honesty and compliance of the users. A manual log can be easily manipulated, forged, or omitted by the users or intruders. A manual log also does not capture the status of each access attempt, and it can be difficult to verify the identity of the users based on their signatures.

An alarm system with CCTV is not as useful as a system electronic log, because it only captures the events that trigger the alarm, such as unauthorized or forced entry. An alarm system with CCTV does not provide a complete record of all access attempts, and it can be affected by factors such as camera angle, lighting, and resolution. An alarm system with CCTV also requires more time and effort to review the video footage by the auditor.

A security incident log is not as useful as a system electronic log, because it only records the incidents that are reported by the users or detected by the security staff. A security incident log does not provide a comprehensive record of all access attempts, and it can be incomplete or inaccurate depending on the reporting and detection mechanisms. A security incident log also does not capture the details of each access attempt, such as the card number and status.

References:

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

ISACA CISA Certified Information Systems Auditor Exam … - PUPUWEB

The best method to determine if IT resource spending is aligned with planned project spending is earned value analysis (EVA). EVA is a technique that compares the actual cost, schedule, and scope of a project with the planned or budgeted values. EVA can help to measure the project progress and performance, and identify any variances or deviations from the baseline plan1.

EVA uses three basic values to calculate the project status: planned value (PV), earned value (EV), and actual cost (AC). PV is the amount of work that was expected to be completed by a certain date, according to the project plan. EV is the amount of work that was actually completed by that date, measured in terms of the budgeted cost. AC is the amount of money that was actually spent to complete the work by that date1.

By comparing these values, EVA can determine if the project is on track, ahead, or behind schedule and budget. EVA can also calculate various indicators, such as cost variance (CV), schedule variance (SV), cost performance index (CPI), and schedule performance index (SPI), to quantify the magnitude and direction of the variances. EVA can also forecast the future performance and completion of the project, based on the current trends and assumptions1.

The other options are not as effective as EVA in determining if IT resource spending is aligned with planned project spending. Option B, return on investment (ROI) analysis, is a technique that evaluates the profitability or efficiency of an investment, by comparing the benefits or revenues with the costs. ROI analysis can help to justify or prioritize a project, but it does not measure the actual progress or performance of the project against the plan2. Option C, Gantt chart, is a tool that displays the tasks, durations, dependencies, and milestones of a project in a graphical format. Gantt chart can help to plan and monitor a project schedule, but it does not show the actual cost or scope of the project3. Option D, critical path analysis, is a technique that identifies the longest sequence of tasks or activities that must be completed on time for the project to finish on schedule. Critical path analysis can help to optimize and control a project schedule, but it does not account for the actual cost or scope of the project4.

References:

Earned Value Analysis & Management (EVA/EVM) – Definition & Formulae1

Return on Investment (ROI) Formula2

What Is a Gantt Chart?3

Critical Path Method for Project Management

 The first step in the incident response process for a suspected breach is to research the validity of the alerted breach. An incident response process is a set of procedures that defines how to handle security incidents in a timely and effective manner. The first step in this process is to research the validity of the alerted breach, which means to verify whether the alert is genuine or false positive, to determine the scope and impact of the incident, and to gather relevant information for further analysis and action. Informing potentially affected customers of the security breach, notifying business management of the security breach, and engaging a third party to independently evaluate the alerted breach are also steps in the incident response process, but they are not the first step. References:

CISA Review Manual, 27th Edition, page 4251

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 An IS auditor should be concerned because deleting the files logically does not overwrite the files’ physical data. Deleting a file from a hard disk only removes the reference or pointer to the file from the file system, but does not erase the actual data stored on the disk sectors. The deleted data can still be recovered using special tools or techniques until it is overwritten by new data. This poses a risk of data leakage, theft, or misuse if the hard disk falls into the wrong hands. To securely dispose of a system containing sensitive data, the hard disk should be wiped or sanitized using methods that overwrite or destroy the physical data beyond recovery. References:

CISA Review Manual (Digital Version)

CISA Questions, Answers & Explanations Database

 The best evidence that adequate resources are now allocated to successfully recover the systems is a service level agreement (SLA). An SLA is a contract between a service provider and a customer that defines the scope, quality, and terms of the service delivery. An SLA should include measurable and verifiable indicators of the service performance, such as availability, reliability, capacity, security, and recovery. An SLA should also specify the roles, responsibilities, and expectations of both parties, as well as the remedies and penalties for non-compliance. An SLA can help to ensure that the third-party vendor has allocated sufficient hardware and other resources to meet the recovery objectives and requirements of the organization. References:

CISA Review Manual (Digital Version)

CISA Questions, Answers & Explanations Database

 The IS auditor should ensure that penetration test results are classified at the highest level of sensitivity, because they contain detailed information about the vulnerabilities and weaknesses of the IT systems and networks, as well as the methods and tools used by the testers to exploit them. Penetration test results can be used by malicious actors to launch cyberattacks or cause damage to the organization if they are disclosed or accessed without authorization. Therefore, they should be protected with the highest level of confidentiality, integrity and availability. The other options are not as sensitive as penetration test results, because they either do not reveal as much information about the IT security posture, or they are already known or reported by the organization. References: CISA Review Manual (Digital Version)1, Chapter 5, Section 5.2.4

The best metric to measure the alignment of IT and business strategy is the percentage of enterprise risk assessments that include IT-related risk. This metric indicates how well the organization identifies and manages the IT risks that could affect its strategic objectives and performance. A high percentage of enterprise risk assessments that include IT-related risk shows that the organization considers IT as an integral part of its business strategy and aligns its IT resources and capabilities with its business needs and goals . References: : CISA Review Manual (Digital Version), Chapter 2: Governance and Management of IT, Section 2.2: IT Strategy, page 67 : CISA Online Review Course, Module 2: Governance and Management of IT, Lesson 2.2: IT Strategy

The best recommendation for an IS auditor when finding that a third-party IT service provider hosts the organization’s HR system in a foreign country is to conduct a privacy impact analysis. A privacy impact analysis is a systematic process that identifies and evaluates the potential risks and impacts of collecting, using, disclosing, and storing personal information. A privacy impact analysis will help the IS auditor to assess the legal, regulatory, contractual, and ethical obligations of the organization and the service provider regarding the protection of personal information. A privacy impact analysis will also help to identify and mitigate any privacy risks and gaps in the service level agreement. References:

CISA Certification | Certified Information Systems Auditor | ISACA

CISA Questions, Answers & Explanations Database

 The most critical finding that the IS auditor should consider when reviewing processes for importing market price data from external data providers is that the quality of the data is not monitored. This is because market price data is essential for financial transactions, risk management, valuation and reporting, and any errors or inaccuracies in the data can have significant impact on the organization’s performance, reputation and compliance. The IS auditor should ensure that the organization has established quality criteria and controls for the imported data, such as validity, completeness, timeliness, consistency and accuracy, and that the data is regularly checked and verified against these criteria. The other findings are also important, but not as critical as data quality. References: CISA Review Manual (Digital Version)1, Chapter 5, Section 5.2.7

 The best way to help management understand the associated risk of missing backup cycles due to operator error and lack of exception management is to explain the impact to disaster recovery. Disaster recovery is the process of restoring normal operations and functions after a disruptive event, such as a natural disaster, a cyberattack, or a hardware failure. Backup cycles are essential for disaster recovery, because they ensure that the organization has copies of its critical data and systems that can be restored in case of data loss or corruption. If backup cycles are missed due to operator error, and these exceptions are not managed, the organization may not have the latest or complete backups available for disaster recovery, which can result in prolonged downtime, reduced productivity, lost revenue, reputational damage, and legal or regulatory penalties. The other options are not as effective as explaining the impact to disaster recovery, because they either do not address the risk of data loss or corruption, or they focus on operational or technical aspects rather than business outcomes. References: CISA Review Manual (Digital Version)1, Chapter 5, Section 5.2.1

 The first step in assessing the controls within a newly implemented call center is to evaluate the operational risk associated with the call center. This will help the IS auditor to identify the potential threats, vulnerabilities, and impacts that could affect the call center’s objectives, performance, and availability. The evaluation of operational risk will also provide a basis for determining the scope, objectives, and approach of the audit. The other options are possible audit procedures, but they are not the first step in the audit process. References: ISACA Frameworks: Blueprints for Success, CISA Review Manual (Digital Version)

The best way to facilitate the legal process in the event of an incident is to preserve the chain of custody of the evidence. The chain of custody is a record of who handled, accessed, or modified the evidence, when, where, how, and why. The chain of custody helps to ensure the integrity, authenticity, and admissibility of the evidence in a court of law. The chain of custody also helps to prevent tampering, alteration, or loss of evidence that could compromise the investigation or the prosecution. References:

CISA Review Manual (Digital Version)

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The most reliable follow-up procedure to determine if management has resolved the finding of non-sequential purchase order numbers is to inspect the system settings and transaction logs to determine if sequential order numbers are generated. This will provide direct evidence of the system’s functionality and compliance with the audit recommendation. The other options are less reliable because they rely on indirect evidence or information obtained from management, which may not be accurate or complete. References: CISA Review Manual (Digital Version), Standards, Guidelines, Tools and Techniques

The greatest concern for an IS auditor reviewing contracts for licensed software that executes a critical business process is that software escrow was not negotiated. Software escrow is an arrangement where a third-party holds a copy of the source code and documentation of a licensed software in a secure location. The software escrow agreement specifies the conditions under which the licensee can access the escrowed materials, such as in case of bankruptcy, termination, or breach of contract by the licensor. Software escrow is important for ensuring the continuity and availability of a critical business process that depends on a licensed software. Without software escrow, the licensee may face significant risks and challenges in maintaining, modifying, or recovering the software in case of any disruption or dispute with the licensor. References:

CISA Review Manual (Digital Version)

CISA Questions, Answers & Explanations Database

 The best way to ensure that a backup copy is available for restoration of mission critical data after a disaster is to periodically test backups stored in a remote location. Testing backups is essential to verify that the backup copies are valid, complete, and recoverable. Testing backups also helps to identify any issues or errors that may affect the backup process or the restoration of data. Storing backups in a remote location is important to protect the backup copies from physical damage, theft, or unauthorized access that may occur at the primary site. Using an electronic vault for incremental backups, deploying a fully automated backup maintenance system, or using both tape and disk backup systems are not sufficient to ensure that a backup copy is available for restoration of mission critical data after a disaster, as they do not address the need for testing backups or storing them in a remote location. References: Backup and Recovery of Data: The Essential Guide | Veritas, The Truth About Data Backup for Mission-Critical Environments - DATAVERSITY.

 The finding that should be the IS auditor’s greatest concern is that the data model is not clearly documented. A data model is a representation of the structure, relationships, and constraints of the data used by an application. It is a vital component of the software development process, as it helps to ensure the accuracy, consistency, and quality of the data1. A clear and comprehensive documentation of the data model is essential for the maintenance and support of the application, as it facilitates the understanding, modification, and troubleshooting of the data and the application logic2.

If the organization plans to bring the support and future maintenance of the application back in-house, it will need to have access to the data model documentation from the vendor. Without it, the organization may face difficulties in transferring the knowledge and skills from the vendor to the in-house team, as well as in adapting and enhancing the application to meet changing business needs and requirements3. The lack of data model documentation may also increase the risk of errors, inconsistencies, and inefficiencies in the data and the application performance2.

The other findings are not as concerning as the lack of data model documentation, because they do not directly affect the quality and maintainability of the application. The cost of outsourcing is lower than in-house development is a benefit rather than a risk for the organization, as it implies that outsourcing has helped to save time and money for the organization4. The vendor development team is located overseas is a common practice in outsourcing, and it does not necessarily imply a lower quality or a higher risk of the application. However, it may pose some challenges in terms of communication, coordination, and cultural differences, which can be managed by establishing clear expectations, roles, and responsibilities, as well as using effective tools and methods for communication and collaboration5. A training plan for business users has not been developed is a gap that should be addressed by the organization before deploying the application, as it may affect the user acceptance and satisfaction of the application. However, it does not directly impact the quality or maintainability of the application itself. References:

What is Data Modeling? Definition & Types | Informatica1

Data Modeling Best Practices: Documentation | erwin2

Data Model Documentation - an overview | ScienceDirect Topics3

Outsourcing App Development Pros and Cons – Droids On Roids4

8 Risks of Software Development Outsourcing & Their Solutions - Acropolium5

Software Training Plan: How to Create One for Your Business - Elinext

 A network vulnerability assessment is a process of identifying and evaluating the weaknesses and exposures in a network that could be exploited by attackers to compromise the confidentiality, integrity, or availability of the network or its resources. A network vulnerability assessment typically involves scanning the network devices, such as routers, switches, firewalls, servers, and workstations, using automated tools that compare the device configurations, software versions, and patch levels against a database of known vulnerabilities. A network vulnerability assessment can also include manual testing and verification of the network architecture, design, policies, and procedures. One of the main objectives of a network vulnerability assessment is to detect and report any misconfiguration and missing updates in the network devices that could pose a security risk1. Misconfiguration refers to any deviation from the recommended or best practice settings for the network devices, such as weak passwords, open ports, unnecessary services, default accounts, or incorrect permissions. Missing updates refer to any outdated or unsupported software or firmware that has not been patched with the latest security fixes or enhancements from the vendors2. Misconfiguration and missing updates are common sources of network vulnerabilities that can be exploited by attackers to gain unauthorized access, execute malicious code, cause denial of service, or escalate privileges on the network devices3. Therefore, an IS auditor should expect to see misconfiguration and missing updates in a network vulnerability assessment. The other options are less relevant or incorrect because:

B. Malicious software and spyware are not usually detected by a network vulnerability assessment, as they are more related to the content and behavior of the network traffic rather than the configuration and patch level of the network devices. Malicious software and spyware are programs that infect or monitor the network devices or their users for malicious purposes, such as stealing data, displaying ads, or performing remote commands. Malicious software and spyware can be detected by other security tools, such as antivirus software, firewalls, or intrusion detection systems4.

C. Zero-day vulnerabilities are not usually detected by a network vulnerability assessment, as they are unknown or undisclosed vulnerabilities that have not been reported or patched by the vendors or the security community. Zero-day vulnerabilities are rare and difficult to discover, as they require advanced techniques and skills to exploit them. Zero-day vulnerabilities can be detected by other security tools, such as intrusion prevention systems, anomaly detection systems, or artificial intelligence systems5.

D. Security design flaws are not usually detected by a network vulnerability assessment, as they are more related to the logic and functionality of the network rather than the configuration and patch level of the network devices. Security design flaws are errors or weaknesses in the network architecture, design, policies, or procedures that could compromise the security objectives of the network. Security design flaws can be detected by other security methods, such as security reviews, audits, or assessments6. References: Network Vulnerability Assessment - ISACA, Network Vulnerability Scanning - NIST, Network Vulnerabilities - SANS, Malware - ISACA, Zero-Day Attacks - ISACA, Security Design Principles - NIST

The most important factor to ensure that electronic evidence collected during a forensic investigation will be admissible in future legal proceedings is to document evidence handling by personnel throughout the forensic investigation. Documentation is essential to establish the chain of custody, prove the integrity and authenticity of the evidence, and demonstrate compliance with legal and ethical standards. Documentation should include information such as the date, time, location, source, destination, method, purpose, result, and authorization of each action performed on the evidence. Documentation should also include any observations, findings, assumptions, limitations, or exceptions encountered during the investigation. References:

CISA Review Manual (Digital Version)

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The best way to enable the effectiveness of an agile project for the rapid development of a new software application is to separate the work into sprints. Sprints are short, time-boxed iterations that deliver a potentially releasable product increment at the end of each sprint. Sprints allow agile teams to work in a flexible and adaptive manner, respond quickly to changing customer needs and feedback, and deliver value faster and more frequently. Sprints also help teams to plan, execute, review, and improve their work in a collaborative and transparent way. Project segments, phases, and milestones are not specific to agile projects and do not necessarily enable the effectiveness of an agile project. References: Agile Project Management [What is it & How to Start] - Atlassian, CISA Review Manual (Digital Version).

The first task that an IS auditor should complete during the preliminary planning phase of a database security review is to determine which databases will be in scope. The scope defines the boundaries and objectives of the audit, as well as the resources, time, and budget required. The IS auditor should identify the databases that are relevant to the audit based on factors such as their criticality, risk, complexity, size, type, location, and ownership. The IS auditor should also consider the regulatory, contractual, and organizational requirements that apply to the databases. By defining the scope clearly and accurately, the IS auditor can ensure that the audit is focused, feasible, and effective. References:

CISA Review Manual (Digital Version)

CISA Questions, Answers & Explanations Database

The approach adopted by management in this scenario is risk avoidance. Risk avoidance is the elimination of a risk by discontinuing or not undertaking an activity that poses a threat to the organization3. By moving data center operations to another facility on higher ground, management is avoiding the potential flooding risk that could disrupt or damage the data center. Risk transfer, risk acceptance and risk reduction are other possible approaches for dealing with risks, but they do not apply in this case. References:

CISA Review Manual, 27th Edition, page 641

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 A corrective control is a control that aims to restore normal operations after a disruption or incident has occurred. Executing emergency response plans is an example of a corrective control, as it helps to mitigate the impact of an incident and resume business functions. Separating equipment development testing and production is a preventive control, as it helps to avoid errors or unauthorized changes in production systems. Verifying duplicate calculations in data processing is a detective control, as it helps to identify errors or anomalies in data processing. Reviewing user access rights for segregation is also a detective control, as it helps to detect any violations of segregation of duties principles. References: ISACA, CISA Review Manual, 27th Edition, 2018, page 64

 The most efficient way to identify segregation of duties violations in a new system is to review a report of security rights in the system. Segregation of duties is a control principle that aims to prevent or detect errors, fraud, or abuse by ensuring that no single individual has the ability to perform incompatible or conflicting functions or activities within a system or process. A report of security rights in the system can provide a comprehensive and accurate overview of the roles, responsibilities, and access levels assigned to different users or groups in the system, and can help to identify any potential segregation of duties violations or risks. The other options are not as efficient as reviewing a report of security rights in the system, because they either rely on observation or testing rather than analysis, or they focus on existing rather than potential violations. References: CISA Review Manual (Digital Version)1, Chapter 5, Section 5.2.2

The best way to validate that appropriate security controls are in place to prevent data loss is to review compliance with data loss and applicable mobile device user acceptance policies. This will ensure that the organization has established clear rules and guidelines for employees to follow when connecting their personal devices to company-owned computers. A walk-through, a DLP tool configuration, and a security awareness training are not sufficient to validate the effectiveness of the controls, as they may not cover all possible scenarios and risks. References: IT Audit Fundamentals Certificate Resources

 Periodically reviewing log files is the most effective way to detect intrusion attempts from outside the organization, as they can provide evidence of unauthorized access attempts, source IP addresses, timestamps and other relevant information. Using smart cards with one-time passwords or installing biometrics-based authentication can prevent unauthorized access, but not detect it. Configuring the router as a firewall can block unwanted traffic, but not log it. References: ISACA, CISA Review Manual, 27th Edition, 2018, page 361

The greatest concern for an IS auditor reviewing an organization’s business continuity plan (BCP) is that the BCP has not been tested since it was first issued. A BCP is a document that describes how an organization will continue its critical business functions in the event of a disruption or disaster. A BCP should include information such as roles and responsibilities, recovery strategies, resources, procedures, communication plans, and backup arrangements3. Testing the BCP is a vital step in ensuring its validity, effectiveness, and readiness. Testing the BCP involves simulating various scenarios and executing the BCP to verify whether it meets its objectives and requirements. Testing the BCP can also help to identify and correct any gaps, errors, or weaknesses in the BCP before they become issues during a real incident4. Therefore, an IS auditor should be concerned if the BCP has not been tested since it was first issued, as it may indicate that the BCP is outdated, inaccurate, incomplete, or ineffective. The other options are less concerning or incorrect because:

A. The BCP’s contact information needs to be updated is not a great concern for an IS auditor reviewing an organization’s BCP, as it is a minor issue that can be easily fixed. Contact information refers to the names, phone numbers, email addresses, or other details of the people involved in the BCP execution or communication. Contact information needs to be updated regularly to reflect any changes in personnel or roles. While having outdated contact information may cause some delays or confusion during a BCP activation, it does not affect the overall validity or effectiveness of the BCP.

B. The BCP is not version controlled is not a great concern for an IS auditor reviewing an organization’s BCP, as it is a moderate issue that can be improved. Version control refers to the process of tracking and managing changes made to the BCP over time. Version control helps to ensure that only authorized changes are made to the BCP and that there is a clear record of who made what changes when and why. Version control also helps to avoid conflicts or inconsistencies among different versions of the BCP. While having no version control may cause some difficulties or risks in maintaining and updating the BCP, it does not affect the overall validity or effectiveness of the BCP.

C. The BCP has not been approved by senior management is not a great concern for an IS auditor reviewing an organization’s BCP, as it is a high-level issue that can be resolved. Approval by senior management refers to the formal endorsement and support of the BCP by the top executives or leaders of the organization. Approval by senior management helps to ensure that the BCP is aligned with the organization’s strategy, objectives, and priorities, and that it has sufficient resources and authority to be implemented. Approval by senior management also helps to increase the awareness and commitment of the organization’s stakeholders to the BCP. While having no approval by senior management may affect the credibility and acceptance of the BCP, it does not affect the overall validity or effectiveness of the BCP. References: Working Toward a Managed, Mature Business Continuity Plan - ISACA, ISACA Introduces New Audit Programs for Business Continuity/Disaster …, Disaster Recovery and Business Continuity Preparedness for Cloud-based …

 The best way to detect that a distributed denial of service (DDoS) attack is occurring is to use automated monitoring of logs. A DDoS attack disrupts the operations of a server, service, or network by flooding it with unwanted Internet traffic2. Automated monitoring of logs can help pinpoint potential DDoS attacks by analyzing network traffic patterns, monitoring traffic spikes or other unusual activity, and alerting administrators or security teams of any anomalies or malicious requests, protocols, or IP blocks3. Automated monitoring of logs can also help identify the source, type, and impact of the DDoS attack, and provide evidence for further investigation or mitigation.

The other options are not as effective as automated monitoring of logs for detecting DDoS attacks. Customer service complaints are an indirect and delayed indicator of a DDoS attack, as they rely on users reporting problems with accessing a website or service. Customer service complaints may also be caused by other factors unrelated to DDoS attacks, such as server errors or network issues. Server crashes are an extreme and undesirable indicator of a DDoS attack, as they indicate that the server has already been overwhelmed by the attack and has stopped functioning. Server crashes may also result in data loss or corruption, service disruption, or reputational damage. Penetration testing is a proactive and preventive measure for assessing the security posture of a system or network, but it does not detect ongoing DDoS attacks. Penetration testing may involve simulating DDoS attacks to test the resilience or vulnerability of a system or network, but it does not monitor real-time traffic or identify actual attackers.

References:

ISACA CISA Review Manual 27th Edition (2019), page 254

How to prevent DDoS attacks | Methods and tools | Cloudflare2

Understanding Denial-of-Service Attacks | CISA3

The best approach to optimize resources when both internal and external audit teams are reviewing the same IT general controls area is to leverage the work performed by external audit for the internal audit testing. This can avoid duplication of efforts, reduce audit costs and enhance coordination between the audit teams. The internal audit team should evaluate the quality and reliability of the external audit work before relying on it. Ensuring both the internal and external auditors perform the work simultaneously is not an efficient use of resources, as it would create redundancy and possible interference. Requesting that the external audit team leverage the internal audit work may not be feasible or acceptable, as the external audit team may have different objectives, standards and independence requirements. Rolling forward the general controls audit to the subsequent audit year is not a good practice, as it would delay the identification and remediation of any control weaknesses in a high-risk area. References: ISACA, CISA Review Manual, 27th Edition, 2018, page 247

 Adequate action taken for noncompliance with the service level agreement (SLA) provides the best evidence that outsourced provider services are being properly managed. This shows that the organization is monitoring the performance of the provider and enforcing the terms of the SLA.

The other options are not as convincing as evidence of proper management. Option A, the SLA includes penalties for non-performance, is a good practice but does not guarantee that the penalties are actually applied or that the performance is satisfactory. Option C, the vendor provides historical data to demonstrate its performance, is not reliable because the data may be biased or inaccurate. Option D, internal performance standards align with corporate strategy, is irrelevant to the question of outsourced provider management.

References:

ISACA, CISA Review Manual, 27th Edition, 2019, page 2821

ISACA, CISA Review Questions, Answers & Explanations Database - 12 Month Subscription, QID 1066692

The most likely application input control that would detect data input errors in the customer account number field during the processing of an accounts receivable transaction is a validity check. A validity check is a type of application control that verifies whether the data entered in an application matches a predefined set of values or criteria1. For example, a validity check can compare the customer account number entered by the user with a list of existing customer account numbers stored in a database, and reject any input that does not match any of the valid values2.

The other options are not as likely to detect data input errors in the customer account number field, because they do not compare the input with a predefined set of values or criteria. A limit check is a type of application control that verifies whether the data entered in an application falls within a specified range or limit1. For example, a limit check can ensure that the amount entered for an invoice does not exceed a certain maximum value2. A parity check is a type of application control that verifies whether the data entered in an application has an even or odd number of bits1. For example, a parity check can detect transmission errors in binary data by adding an extra bit to the data and checking whether the number of bits is consistent3. A reasonableness check is a type of application control that verifies whether the data entered in an application is logical or sensible based on other related data or information1. For example, a reasonableness check can ensure that the date entered for an order is not in the future or before the date of creation of the customer account2. References:

What are application controls? Definition, examples & best practices1

General Control Vs Application Control: Key Differences and Example …4

Parity Check - an overview | ScienceDirect Topics

The most important thing for the company to verify when outsourcing the printing of customer statements is whether the provider’s information security controls are aligned with the company’s. This is because customer statements contain sensitive personal and financial information that need to be protected from unauthorized access, disclosure, modification or destruction. The provider’s information security controls should be consistent with the company’s policies, standards and regulations, and should be audited periodically to ensure compliance. The other options are also relevant, but not as critical as information security. References: CISA Review Manual (Digital Version)1, Chapter 3, Section 3.2.2

A mobile device awareness program would best enable an organization to address the security risks associated with a recently implemented bring your own device (BYOD) strategy. A mobile device awareness program is a set of activities that aim to educate and inform the employees about the benefits, challenges, and best practices of using their personal mobile devices for work purposes. A mobile device awareness program can help the organization to:

Communicate the organization’s policies and expectations regarding BYOD, such as which devices are allowed, what data can be accessed or stored, and what security measures are required.

Raise the employees’ awareness of the potential threats and vulnerabilities that affect their mobile devices, such as malware, phishing, data leakage, or device loss.

Provide the employees with guidance and tips on how to protect their mobile devices and the organization’s data, such as using strong passwords, encryption, antivirus software, remote wipe, or VPN.

Encourage the employees to report any incidents or issues related to their mobile devices, such as suspicious messages, unauthorized access, or device damage.

A mobile device awareness program can help the organization to reduce the security risks associated with BYOD by enhancing the employees’ knowledge, skills, and behavior in using their mobile devices securely and responsibly. A mobile device awareness program can also help the organization to comply with relevant regulations and standards that govern data privacy and security in the cloud1.

The other options are not as effective as a mobile device awareness program in enabling an organization to address the security risks associated with BYOD. Option A, mobile device tracking program, is a tool that allows the organization to monitor and locate the employees’ mobile devices in case of loss or theft. However, this tool may not prevent or detect other types of security risks, such as malware infection or data breach. Option B, mobile device upgrade program, is a process that ensures that the employees’ mobile devices are running the latest versions of operating systems and applications. However, this process may not address other aspects of security, such as user behavior or data protection. Option C, mobile device testing program, is a method that verifies the functionality and compatibility of the employees’ mobile devices with the organization’s systems and networks. However, this method may not cover all the scenarios or factors that may affect the security of the mobile devices or the organization’s data2.

References:

Mobile Device Security Awareness Topics3

Security Awareness Top Ten Topics - #8 Mobile Devices

 The most important thing for an IS auditor to look for in a project feasibility study is an assessment of whether the expected benefits can be achieved. A project feasibility study is a preliminary analysis that evaluates the viability and suitability of a proposed project based on various criteria, such as technical, economic, legal, operational, and social factors. The expected benefits are the positive outcomes and value that the project aims to deliver to the organization and its stakeholders. The IS auditor should verify whether the project feasibility study has clearly defined and quantified the expected benefits, and whether it has assessed the likelihood and feasibility of achieving them within the project scope, budget, schedule, and quality parameters. The other options are also important for an IS auditor to look for in a project feasibility study, but not as important as an assessment of whether the expected benefits can be achieved, because they either focus on specific aspects of the project rather than the overall value proposition, or they assume that the project will be implemented rather than evaluating its viability. References: CISA Review Manual (Digital Version)1, Chapter 4, Section 4.2.1

The best evidence that an organization’s IT strategy is aligned to its business objectives is that the IT strategy is approved by executive management. This implies that the IT strategy has been reviewed and validated by the senior leaders of the organization, who are responsible for setting and overseeing the business objectives. The IT strategy may be modified in response to organizational change, based on IT operational best practices, or have significant impact on the business strategy, but these are not sufficient indicators of alignment without executive approval. References: CISA Review Manual (Digital Version)1, Chapter 1, Section 1.2.1

 Partitioning the work environment from personal space on devices. This would best maintain information security without compromising employee privacy by creating a separate and secure area on the personal mobile devices for work-related data and applications. This way, the organization can protect its information from unauthorized access, loss, or leakage, while respecting the employees’ personal data and preferences on their own devices.

The other options are not as effective as option B in balancing information security and employee privacy. Option A, installing security software on the devices, is a good practice but may not be sufficient to prevent data breaches or comply with regulatory requirements. Option C, preventing users from adding applications, is too restrictive and may interfere with the employees’ personal use of their devices. Option D, restricting the use of devices for personal purposes during working hours, is impractical and difficult to enforce.

References:

ISACA, CISA Review Manual, 27th Edition, 2019

ISACA, CISA Review Questions, Answers & Explanations Database - 12 Month Subscription

Personal Cellphone Privacy at Work1

Protecting your personal information and privacy on a company phone2

Mobile Devices and Protected Health Information (PHI)3

Using your personal phone for work? Here’s how to separate your apps and data4

9 Ways to Improve Mobile Security and Privacy in the Age of Remote Work5

The most conclusive audit procedure for evaluating the effectiveness of an e-commerce application system’s edit routine is to use test transactions. A test transaction is a simulated input that is processed by the system to verify its output and performance1. By using test transactions, an auditor can directly observe how the edit routine checks the validity, accuracy, and completeness of data entered by users, and how it handles incorrect or invalid data. A test transaction can also help measure the efficiency, reliability, and security of the edit routine, as well as identify any errors or weaknesses in the system.

The other options are not as conclusive as using test transactions, as they rely on indirect or secondary sources of information. Reviewing program documentation is an audit procedure that involves examining the written description of the system’s design, specifications, and functionality2. However, program documentation may not reflect the actual implementation or operation of the system, and it may not reveal any discrepancies or defects in the edit routine. Interviews with knowledgeable users is an audit procedure that involves asking questions to the people who use or manage the system3. However, interviews with knowledgeable users may not provide sufficient or objective evidence of the edit routine’s effectiveness, and they may be influenced by personal opinions or biases. Reviewing source code is an audit procedure that involves analyzing the programming language and logic of the system4. However, reviewing source code may not be feasible or practical for complex or large systems, and it may not demonstrate how the edit routine performs in real scenarios.

 The type of risk associated with the potential for the auditor to miss a sequence of logged events that could indicate an error in the IPS configuration is detection risk. 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. Detection risk can be affected by factors such as the nature, timing, and extent of the audit procedures, the quality and sufficiency of the audit evidence, and the auditor’s professional judgment and competence. Detection risk can be reduced by applying appropriate audit techniques, such as sampling, testing, observation, inquiry, and analysis. References:

CISA Review Manual (Digital Version)

CISA Questions, Answers & Explanations Database

The most significant risk from this observation is that access rights may not be removed in a timely manner. If the process for removing access for terminated employees is not documented, there is no clear guidance or accountability for who, how, when, and what actions should be taken to revoke the access rights of the employees who leave the organization. This could result in delays, inconsistencies, or omissions in removing access rights, which could allow terminated employees to retain unauthorized access to the organization’s systems and data. This could compromise the security, confidentiality, integrity, and availability of the information assets. References:

CISA Review Manual (Digital Version)

CISA Questions, Answers & Explanations Database

The best way to mitigate the risk associated with unintentional modifications of complex calculations in end-user computing (EUC) is to execute copies of EUC programs out of a secure library. This will ensure that the original EUC programs are protected from unauthorized changes and that the copies are run in a controlled environment. A secure library is a repository of EUC programs that have been tested, validated, and approved by the appropriate authority. Executing copies of EUC programs out of a secure library can also help with version control, backup, and recovery of EUC programs. Having an independent party review the source calculations, implementing complex password controls, and verifying EUC results through manual calculations are not as effective as executing copies of EUC programs out of a secure library, as they do not prevent or detect unintentional modifications of complex calculations in EUC. References: End-User Computing (EUC) Risks: A Comprehensive Guide, End User Computing (EUC) Risk Management

 Developing a risk-based plan considering each entity’s business processes would best help to ensure that IS audit still covers key risk areas within the IT environment as part of its annual plan. A risk-based plan is a plan that prioritizes the audit activities based on the level of risk associated with each area or process. A risk-based plan can help to allocate the audit resources more efficiently and effectively, and provide more assurance and value to the stakeholders1.

By considering each entity’s business processes, the IS audit can identify and assess the specific risks and controls that affect the IT environment of each entity, and tailor the audit objectives, scope, and procedures accordingly. This can help to address the unique needs and expectations of each entity, and ensure that the IS audit covers the key risk areas that are relevant and significant to each entity’s operations, performance, and compliance2.

The other options are not as effective as developing a risk-based plan considering each entity’s business processes in ensuring that IS audit still covers key risk areas within the IT environment as part of its annual plan. Option A, increasing the frequency of risk-based IS audits for each business entity, is not a feasible or efficient solution, as it may increase the audit costs and workload, and create duplication or overlap of audit efforts. Option C, conducting an audit of newly introduced IT policies and procedures, is a limited and narrow approach, as it may not cover all the aspects or dimensions of the IT environment that may have changed or been affected by the split. Option D, revising IS audit plans to focus on IT changes introduced after the split, is a reactive and short-term approach, as it may not reflect the current or future state of the IT environment or the business objectives of each entity.

References:

ISACA, CISA Review Manual, 27th Edition, 2019

ISACA, CISA Review Questions, Answers & Explanations Database - 12 Month Subscription

Risk-Based Audit Planning: A Guide for Internal Audit1

Risk-Based Audit Approach: Definition & Example

When verifying the accuracy and completeness of migrated data for a new application system replacing a legacy system, it is most effective for an IS auditor to review data analytics findings. Data analytics is a technique that uses software tools and statistical methods to analyze large volumes of data and identify patterns, anomalies, errors or inconsistencies. Data analytics can help to compare the source and target data sets, validate the data quality and integrity, and detect any data loss or corruption during the migration process. The other options are not as effective, because audit trails only record the actions performed on the data, acceptance testing results only verify the functionality of the new system, and rollback plans only provide contingency measures in case of migration failure. References: CISA Review Manual (Digital Version)1, Chapter 5, Section 5.2.6

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 ethics and 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 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.

Source code synchronization is the process of ensuring that the source code and the object code (the compiled version of the source code) are consistent and up-to-date1. When program changes are implemented, the source code should be recompiled to generate a new object code that reflects the changes. However, if the source code is not recompiled, there is a risk that the object code may be outdated or incorrect. A compensating control is a measure that reduces the risk of an existing control weakness or deficiency2. A compensating control for source code synchronization is to compare the date stamping of the source and object code. Date stamping is a method of recording the date and time when a file is created or modified3. By comparing the date stamping of the source and object code, one can verify if they are synchronized or not. If the date stamping of the source code is newer than the object code, it means that the source code has been changed but not recompiled. If the date stamping of the object code is newer than the source code, it means that the object code has been compiled from a different source code. If the date stamping of both files are identical, it means that they are synchronized.

This means that the IT steering committee is responsible for ensuring that the IT strategy aligns with and supports the business strategy, vision, and goals of the organization. The IT steering committee is also responsible for overseeing and approving major IT initiatives, projects, and investments, and allocating resources and priorities accordingly12.

Developing and assessing the IT security strategy (B) is not the main responsibility of the IT steering committee, but rather a specific aspect of the IT strategy that may be delegated to a subcommittee or a dedicated security function. The IT steering committee may provide guidance and oversight for the IT security strategy, but it is not directly involved in developing and assessing it12.

Implementing processes to integrate security with business objectives © is not the main responsibility of the IT steering committee, but rather an operational task that may be performed by the IT management and staff. The IT steering committee may monitor and evaluate the effectiveness of the security processes, but it is not directly involved in implementing them12.

Developing and implementing the secure system development framework (D) is not the main responsibility of the IT steering committee, but rather a technical task that may be performed by the IT developers and engineers. The IT steering committee may approve and endorse the secure system development framework, but it is not directly involved in developing and implementing it12.

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.

Aligning IT strategy with business strategy primarily helps an organization to optimize investments in IT. This is because alignment ensures that IT resources and capabilities are aligned with the business goals and priorities, and that IT delivers value to the business in terms of efficiency, effectiveness, innovation, and competitive advantage12. By aligning IT strategy with business strategy, an organization can avoid wasting money and time on IT projects or services that do not support or contribute to the business outcomes3. Alignment also helps to identify and prioritize the most critical and valuable IT initiatives that can create or optimize business value4.

Therefore, the correct answer to your question is A. optimize investments in IT.

The percent of issues resolved by the first contact, also known as the first contact resolution (FCR) rate, is a metric that measures the effectiveness and efficiency of the IT help desk services. It indicates how many customer support issues are resolved on the first interaction with the IT help desk, without requiring any follow-up calls, emails, chats, or escalations. The FCR rate is calculated by dividing the number of issues resolved on the first contact by the total number of customer support issues, and multiplying by 100%1.

The FCR rate is the best indicator of service quality among the four monthly performance metrics, because it reflects the following aspects of the IT help desk services:

Customer satisfaction: Customers are more likely to be satisfied with the IT help desk services if their issues are resolved quickly and effectively on the first contact, without having to wait for a response or repeat their problem to multiple agents. A high FCR rate can improve customer loyalty, retention, and advocacy2.

Cost efficiency: Resolving issues on the first contact can reduce the operational costs of the IT help desk services, such as labor costs, phone costs, or overhead costs. A high FCR rate can also increase the productivity and utilization of the IT help desk agents, as they can handle more issues in less time3.

Service level: Resolving issues on the first contact can improve the service level of the IT help desk services, such as reducing the average handle time (AHT), increasing the service level agreement (SLA) compliance, or decreasing the backlog of unresolved issues. A high FCR rate can also enhance the reputation and credibility of the IT help desk services4.

Therefore, an IS auditor should review the FCR rate as a key performance indicator (KPI) of the IT help desk services, and compare it with the industry standards and benchmarks. According to MetricNet’s benchmarking database, the FCR industry standard is 74 percent. This number varies widely, however, from a low of about 41 percent to a high of 94 percent5. An IS auditor should also recommend ways to improve the FCR rate, such as:

Training and empowering the IT help desk agents to handle a wide range of issues and provide accurate and consistent solutions

Implementing a knowledge base or a self-service portal that provides relevant and updated information and guidance for common or simple issues

Improving communication and collaboration between different departments or teams that may be involved in resolving complex or escalated issues

Using feedback and analytics tools to monitor and measure customer satisfaction and identify areas for improvement

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 to assess 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

Before selecting a SaaS vendor, the most important action is to complete a risk assessment. A risk assessment is a process of identifying, analyzing, and evaluating the potential risks associated with outsourcing software and IT infrastructure to a third-party provider. A risk assessment helps to determine the impact and likelihood of various threats, such as data breaches, service disruptions, vendor lock-in, compliance issues, and legal disputes. A risk assessment also helps to identify the mitigation strategies and controls that can reduce or eliminate the risks.

A risk assessment is more important than determining service level requirements, performing a business impact analysis (BIA), or conducting a vendor audit because it provides the basis for these other actions. Service level requirements are the expectations and obligations that define the quality and quantity of service that the vendor must provide to the customer. A BIA is a process of assessing the potential effects of an interruption or disruption of critical business functions or processes due to an incident or disaster. A vendor audit is a process of verifying the vendor’s compliance with the contract terms, service levels, security policies, and best practices.

Service level requirements, BIA, and vendor audit are all important actions for selecting a SaaS vendor, but they depend on the results of the risk assessment. For example, service level requirements should reflect the risk appetite and tolerance of the customer, which are determined by the risk assessment. A BIA should prioritize the recovery of the most critical and vulnerable business functions or processes, which are identified by the risk assessment. A vendor audit should focus on the areas of highest risk and concern, which are highlighted by the risk assessment.

Therefore, an IS auditor should recommend to management that completing a risk assessment is the most important action before selecting a SaaS vendor.

References:

SaaS checklist: Nine factors to consider when selecting a vendor

SaaS vendor management: 10 best practices to achieve success

Best Practices for Software SaaS Vendor Selection and Negotiation

How to Evaluate SaaS Providers and Solutions by Developing … - Gartner

The IS auditor should first determine whether the business impact analysis (BIA) is current with the organization’s structure and context. The BIA is a critical component of the BCP and should reflect the current state of the organization. If the BIA is not up-to-date, it may not accurately reflect the impact of a disruption to the organization’s operations, including the closure of a production plant12.

References: ISACA’s Information Systems Auditor Study Materials1

The recovery time objective (RTO) is the most important consideration when making a decision to invest in a hot site due to service criticality. The RTO is the maximum acceptable time that an IT service or process can be unavailable or disrupted before it causes significant damage to the business operations and objectives. A hot site is a fully equipped and operational backup facility that can be activated immediately in the event of a disaster or disruption. A hot site can help an organization achieve a very low RTO, as it can resume the service with minimal or no downtime. The maximum tolerable downtime (MTD) is the maximum acceptable time that an IT service or process can be unavailable or disrupted before it causes intolerable damage to the business operations and objectives. The MTD is usually longer than the RTO, as it represents the worst-case scenario. The recovery point objective (RPO) is the maximum acceptable amount of data loss that an IT service or process can tolerate in the event of a disaster or disruption. The RPO is measured in terms of time, such as hours or minutes, and indicates how frequently the data should be backed up or replicated. The mean time to repair (MTTR) is the average time that it takes to restore an IT service or process after a failure or disruption. The MTTR is a measure of the efficiency and effectiveness of the recovery process, but it does not reflect the service criticality or the business impact. References: IS Audit and Assurance Tools and Techniques, CISA Certification | Certified Information Systems Auditor | ISACA

The role of a document owner when implementing a data classification policy in an organization is to classify documents to correctly reflect the level of sensitivity of information they contain. A document owner is the person who is ultimately responsible for the creation, maintenance, and protection of a document, usually a member of senior management or a business unit1. A data classification policy is a plan that defines how the organization categorizes its data based on its value, risk, and regulatory requirements, and how it handles and secures each data category2.

According to the data classification policy template by Netwrix3, one of the roles and responsibilities of the document owner is to assign data classification labels based on the data’s potential impact level. Data classification labels are tags or markings that indicate the sensitivity level of the data, such as public, internal, confidential, or restricted. The document owner should apply the data classification labels to the documents that contain the data, either manually or automatically, using tools and methods such as metadata, watermarks, headers, footers, or encryption. The document owner should also review and update the data classification labels periodically or whenever there is a change in the data’s sensitivity level.

By classifying documents to correctly reflect the level of sensitivity of information they contain, the document owner can help to ensure that the documents are handled in accordance with the data classification policy. This means that the documents are stored, accessed, shared, transmitted, and disposed of in a secure and appropriate manner, based on the rules and controls defined for each data category. This can also help to prevent data loss, leakage, or breach incidents that may cause harm or damage to the organization or its stakeholders.

Therefore, option A is the correct answer.

References:

Data Classification Policy: Definition, Examples, & Free Template2

Data Classification Policy Template - Netwrix3

Data Classification and Handling Policy - University of Hull1

Support should be given the greatest consideration when implementing the use of an open-source product, as open-source software may not have the same level of technical support, maintenance, and updates as proprietary software1. Open-source software users may have to rely on the community of developers and users, online forums, or third-party vendors for support, which may not be timely, reliable, or consistent2. Therefore, before implementing an open-source product, users should evaluate the availability and quality of support options, such as documentation, forums, mailing lists, bug trackers, chat channels, etc.3

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.

A post-implementation review (PIR) is a process to evaluate whether the objectives of the project were met, determine how effectively this was achieved, 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 the organisation 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: The role & importance of the Post Implementation Review 2: What is Post-Implementation Review in Project Management?

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.

Sending a copy of the transaction logs to offsite storage on a daily basis would minimize the risk of losing transactions as a result of a disaster. This is because offsite storage provides a backup of the data that can be recovered in case of a catastrophic event that destroys or damages the onsite data. Storing a copy of the transaction logs onsite in a fireproof vault (B) would not protect the data from other types of disasters, such as floods, earthquakes, or theft. Encrypting © or signing (D) a copy of the transaction logs and storing them on a local server would not prevent the loss of data if the server is affected by the disaster. Encryption and digital signatures are security measures that protect the confidentiality and integrity of the data, but not the availability.

Tabletop exercises are a type of simulation used to test an organization’s incident response plan12. They involve key stakeholders in a hypothetical scenario to see how they would respond12. This allows management to assess the effectiveness of the incident response process and identify areas for improvement12. Regularly conducting these exercises ensures that the organization is prepared for a real incident and that the incident response process remains effective over time12.

References:

Cybersecurity incident response: The 6 steps to success

Six steps for building a robust incident response strategy - IBM

 A preventive control is a control that aims to deter or prevent undesirable events from occurring. A fingerprint-based access control system for the building is an example of a preventive control for physical access, as it restricts unauthorized persons from entering the premises. Keeping log entries for all visitors to the building, installing CCTV cameras for all ingress and egress points, and implementing a centralized logging server to record instances of staff logging into workstations are examples of detective controls, which are controls that aim to discover or detect undesirable events that have already occurred.

References: IS Audit and Assurance Tools and Techniques, CISA Certification | Certified Information Systems Auditor | ISACA

Post-implementation testing is the process of verifying and validating the functionality, performance, and security of a system after it has been deployed to the production environment1. Post-implementation testing is important for ensuring that the system meets the user requirements and expectations, as well as the operational and business objectives. Post-implementation testing also helps to identify and resolve any defects, errors, or issues that may have occurred during the deployment process or that may have been missed during the previous testing stages2.

Therefore, the observation that post-implementation testing is not conducted for all system releases should be of greatest concern to an IS auditor performing an audit of change and release management controls for a new complex system developed by a small in-house IT team. This observation indicates that the system may have quality, reliability, or security problems that could affect the user satisfaction, system performance, or data integrity. This observation also suggests that the change and release management controls are not adequate or effective, as they do not ensure that all system releases are properly tested and validated before and after deployment.

Option A is not correct because access to change testing strategy and results is not restricted to staff outside the IT team is not a major concern for an IS auditor. While it is good practice to limit access to sensitive or confidential information, such as test data or test cases, to authorized personnel only, access to change testing strategy and results may not pose a significant risk to the system or the organization. Moreover, access to change testing strategy and results may be beneficial for some stakeholders outside the IT team, such as business users, project managers, or auditors, who may need to review or evaluate the testing process or outcomes.

Option B is not correct because some user acceptance testing (UAT) was completed by members of the IT team is not a major concern for an IS auditor. User acceptance testing is the process of verifying and validating that the system meets the user requirements and expectations by involving actual or representative users in the testing process3. While it is preferable to have independent and unbiased users perform UAT, it may not be feasible or practical for some organizations, especially those with small or limited resources. Therefore, some UAT may be completed by members of the IT team, as long as they have sufficient knowledge and experience of the user needs and expectations, and as long as they follow the UAT plan and criteria.

Option C is not correct because IT administrators have access to the production and development environment is not a major concern for an IS auditor. IT administrators are responsible for managing and maintaining the IT infrastructure, including the production and development environments4. Therefore, it is reasonable and necessary for them to have access to both environments, as long as they follow the appropriate policies and procedures for accessing, using, and securing them. Moreover, IT administrators may need to perform tasks such as backup, restore, patching, or troubleshooting in both environments.

References:

What Is Post Implementation Testing?1

Post Implementation Review (PIR) - Definition & Process2

User Acceptance Testing (UAT): Definition & Examples3

What Is an IT Administrator? Definition & Examples4

The most important consideration for patching mission critical business application servers against known vulnerabilities is A. Patches are implemented in a test environment prior to rollout into production. This is because patching mission critical business application servers involves a high level of risk and complexity, and requires careful planning and testing before applying the patches to the live environment. Patches may introduce new bugs, errors, or conflicts that could affect the functionality, performance, or security of the application servers, and cause system downtime, data loss, or business disruption1. Therefore, it is essential to implement patches in a test environment first, where the patches can be verified and validated for their effectiveness and compatibility, and any issues or defects can be identified and resolved before they impact the production environment2.

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 most reliable way for an IS auditor to evaluate the operational effectiveness of an organization’s data loss prevention (DLP) controls is to verify that confidential files cannot be transmitted to a personal USB device. This is because DLP controls are designed to prevent the loss, leakage or misuse of sensitive data through breaches, ex-filtration transmissions and unauthorized use1. A personal USB device is a common way for data to be stolen or compromised, as it can bypass network security measures and allow unauthorized access to confidential files. Therefore, testing the DLP controls by attempting to copy or transfer confidential files to a personal USB device can provide a direct and objective evidence of whether the DLP controls are working as intended or not.

The other options are less reliable ways for an IS auditor to evaluate the operational effectiveness of an organization’s DLP controls. Reviewing data classification levels based on industry best practice is a way to assess the adequacy of the organization’s data protection policies, but it does not measure how well the DLP controls are implemented or enforced in practice. Verifying that current DLP software is installed on all computer systems is a way to check the technical configuration of the DLP solution, but it does not test how well the DLP software detects and prevents data loss incidents in real scenarios. Conducting interviews to identify possible data protection vulnerabilities is a way to gather qualitative information from stakeholders, but it does not provide quantitative or empirical data on the actual performance of the DLP controls.

References:

What is Data Loss Prevention (DLP)? [Guide] - CrowdStrike

 An acceptable use policy (AUP) is a document that defines the rules and guidelines for using an organization’s IT resources, such as networks, devices, and software. It aims to protect the organization’s assets, security, and productivity. An AUP should be formally acknowledged by users to ensure that they are aware of their responsibilities and obligations when using the IT resources. Without formal acknowledgment, users may not be held accountable for violating the AUP or may claim ignorance of the policy. This can expose the organization to legal, regulatory, reputational, or operational risks. Lack of data for measuring compliance, violation of industry standards, and noncompliance with documentation requirements are also possible risks from not having users acknowledge the AUP, but they are less significant than lack of user accountability. References: Workable: Acceptable use policy template, Wikipedia: Acceptable use policy

 An organization considering the outsourcing of a business application should first conduct a cost-benefit analysis to evaluate the feasibility, viability and desirability of the outsourcing decision. A cost-benefit analysis should compare the costs and benefits of outsourcing versus keeping the application in-house, taking into account factors such as financial, operational, strategic, legal, regulatory, security and quality aspects. A cost-benefit analysis should also identify the risks and opportunities associated with outsourcing, and provide a basis for defining the service level requirements, performing a vulnerability assessment, and issuing a request for proposal (RFP) in the subsequent stages of the outsourcing process. References: Info Technology & Systems Resources | COBIT, Risk, Governance … - ISACA, CISA Certification | Certified Information Systems Auditor | ISACA

The most useful thing to do when planning to audit an organization’s compliance with cybersecurity regulations in foreign countries is to map the different regulatory requirements to the organization’s IT governance framework. This is because an IT governance framework is a roadmap that defines the methods used by an organization to implement, manage and report on IT governance within said organization1. IT governance helps align business and IT strategies using a solid and formal framework2. By mapping the different regulatory requirements to the IT governance framework, the auditor can:

Identify the commonalities and differences among the various cybersecurity regulations that apply to the organization’s operations in different countries.

Assess the level of compliance and maturity of the organization’s IT governance practices against each regulatory requirement.

Evaluate the risks and gaps associated with non-compliance or partial compliance with any of the regulatory requirements.

Recommend appropriate actions or improvements to enhance the organization’s IT governance and cybersecurity posture.

Option D is correct because mapping the different regulatory requirements to the organization’s IT governance framework is a systematic and effective way to plan and conduct an audit of compliance with cybersecurity regulations in foreign countries.

The best sampling method to use for verifying the adequacy of an organization’s internal controls and being concerned about potential circumvention of regulations is B. Random sampling. Random sampling is a method of selecting a sample from a population in which each item has an equal and independent chance of being selected1. Random sampling reduces the risk of bias or manipulation in the sample selection, and ensures that the sample is representative of the population. Random sampling can be used for both attribute and variable sampling, which are two types of audit sampling that test for the occurrence rate or the monetary value of errors, respectively2.

 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

An insider attack poses the greatest risk to an organization’s most sensitive data. An insider attack is a type of cyberattack that is carried out by someone who has legitimate access to the organization’s network, systems, or data, such as an employee, contractor, or business partner. An insider attack can be intentional or unintentional, malicious or negligent, and can have various motives, such as financial gain, revenge, espionage, sabotage, or curiosity.

An insider attack poses the greatest risk to an organization’s most sensitive data because:

An insider has a high level of trust and privilege within the organization, which allows them to bypass security controls and access confidential or restricted data without raising suspicion or detection.

An insider has a deep knowledge of the organization’s operations, processes, policies, and vulnerabilities, which enables them to exploit them effectively and cause maximum damage or disruption.

An insider can use various techniques and tools to conceal their identity and actions, such as encryption, steganography, deletion, or alteration of logs or evidence.

An insider can cause significant harm or loss to the organization in terms of data integrity, availability, confidentiality, reputation, compliance, and profitability.

According to the 2023 Cost of Insider Threats Global Report by Ponemon Institute and ObserveIT 1, the average annual cost of insider threats for organizations worldwide was $11.45 million in 2022, a 31% increase from 2018. The report also found that the average number of incidents per organization was 77 in 2022, a 47% increase from 2018. The report classified insider threats into three categories: careless or negligent employees or contractors, criminal or malicious insiders, and credential thieves. The report revealed that careless or negligent insiders were the most common and costly type of insider threat, accounting for 62% of all incidents and $4.58 million in costs.

The other options are not the greatest risk to an organization’s most sensitive data, although they can still pose significant threats.

A password attack is a type of cyberattack that attempts to guess or crack a user’s password to gain unauthorized access to their account or system. A password attack can use various methods, such as brute force, dictionary, rainbow table, phishing, keylogging, or social engineering. A password attack can compromise the security and privacy of the user’s data and information. However, a password attack can be prevented or mitigated by using strong and unique passwords, changing passwords frequently, enabling multi-factor authentication (MFA), and avoiding clicking on suspicious links or attachments.

An eavesdropping attack is a type of cyberattack that intercepts or monitors the communication between two parties without their knowledge or consent. An eavesdropping attack can use various techniques, such as wiretapping, packet sniffing, man-in-the-middle (MITM), or side-channel. An eavesdropping attack can expose the content and metadata of the communication, such as messages, files, voice calls, emails, etc. However, an eavesdropping attack can be prevented or mitigated by using encryption, authentication, digital signatures, VPNs (virtual private networks), or secure protocols.

A spear phishing attack is a type of phishing attack that targets a specific individual or group with personalized and convincing emails that appear to come from a trusted source. A spear phishing attack aims to trick the recipient into clicking on a malicious link or attachment that can infect their device with malware or steal their credentials or data. A spear phishing attack can compromise the security and privacy of the recipient’s data and information. However, a spear phishing attack can be prevented or mitigated by verifying the sender’s identity and email address, checking the email content for spelling and grammar errors, hovering over links before clicking on them (or not clicking at all), scanning attachments for viruses before opening them (or not opening at all), and reporting suspicious emails to IT security staff.

This is because the auditor’s primary objective is to evaluate the adequacy and performance of the business continuity plan (BCP) in ensuring the continuity and resilience of the organization’s critical functions and processes during a disruption. The auditor should review the actual results and outcomes of the business response, such as the recovery time, recovery point, service level, customer satisfaction, and incident management, and compare them with the predefined objectives and criteria of the BCP. The auditor should also identify and analyze any gaps, issues, or lessons learned from the business response, and provide recommendations for improvement12.

Answer A. Confirm the BCP has been recently updated. is not the best answer, because it is not directly related to the auditor’s course of action. Confirming the BCP has been recently updated is a part of the audit planning and scoping process, not the audit execution or reporting process. The auditor should confirm the BCP has been recently updated before conducting the audit, not after revealing that a simulation test has not been performed. Moreover, confirming the BCP has been recently updated does not provide sufficient evidence of the effectiveness of the business response12.

Answer C. Raise an audit issue for the lack of simulated testing. is not the best answer, because it is not relevant to the auditor’s course of action. Raising an audit issue for the lack of simulated testing is a part of the audit reporting and follow-up process, not the audit execution or evaluation process. The auditor should raise an audit issue for the lack of simulated testing after reviewing the effectiveness of the business response, not before or instead of doing so. Furthermore, raising an audit issue for the lack of simulated testing does not address the root cause or impact of the problem, nor does it provide any constructive feedback or guidance for improvement12.

Answer D. Interview staff members to obtain commentary on the BCP’s effectiveness. is not the best answer, because it is not sufficient to guide the auditor’s course of action. Interviewing staff members to obtain commentary on the BCP’s effectiveness is a part of the audit evidence collection and analysis process, not the audit evaluation or conclusion process. The auditor should interview staff members to obtain commentary on the BCP’s effectiveness as one of the sources of information, not as the only or main source of information. Additionally, interviewing staff members to obtain commentary on the BCP’s effectiveness may be subjective, biased, or incomplete, and may not reflect the actual performance or outcomes of the business response12.

References:

Business Continuity Management Audit/Assurance Program

Business Continuity Plan Testing: Types and Best Practices

The best recommendation to help prevent the situation where IT support staff were put in a position to make decisions beyond their level of authority during the review of a system disruption incident is to introduce escalation protocols. Escalation protocols are policies and procedures that define who should be notified, involved, or consulted when an incident occurs, how the communication and handover should take place, and what criteria or triggers should be used to escalate the incident to a higher level of authority or expertise2. Escalation protocols help to ensure that:

Incidents are handled by the appropriate staff with the required skills, knowledge, and experience

Incidents are resolved in a timely and effective manner

Incidents are escalated to senior management or specialized teams when necessary

Incidents are documented and reported accurately and transparently

Incidents are analyzed and learned from to prevent recurrence or mitigate impact

Therefore, by introducing escalation protocols, an organization can improve its incident management process and avoid putting IT support staff in a position to make decisions beyond their level of authority.

References:

Escalation policies for effective incident management, Section 1: What is incident escalation?

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

The best tool for detailed testing of a business application’s data and configuration files is an audit analytics tool. An audit analytics tool is a software that helps auditors to analyze large sets of data and identify anomalies, trends, and patterns that are relevant to the audit objectives. An audit analytics tool can also provide audit evidence and support the auditor’s professional judgment and conclusions.

Some of the benefits of using an audit analytics tool are:

It can improve the efficiency and effectiveness of the audit by reducing the time and effort required to perform manual tests and procedures.

It can enhance the quality and reliability of the audit by increasing the coverage and accuracy of the data analysis and testing.

It can enable the auditor to perform more complex and sophisticated tests and procedures that may not be possible or feasible with traditional methods.

It can help the auditor to discover new insights and risks that may not be apparent or detectable with traditional methods.

Some examples of audit analytics tools are:

IDEA: A data analysis software that allows auditors to import, analyze, and visualize data from various sources and formats. It also offers features such as sampling, stratification, gap analysis, duplicate detection, Benford’s law, and regression analysis.1

ACL: A data analysis software that helps auditors to access, analyze, and report on data from various sources and formats. It also offers features such as sampling, stratification, gap analysis, duplicate detection, Benford’s law, regression analysis, and scripting.2

TeamMate Analytics: A data analysis software that integrates with Microsoft Excel and provides auditors with a range of tools and functions to perform data analysis and testing. It also offers features such as sampling, stratification, gap analysis, duplicate detection, Benford’s law, regression analysis, and scripting.3

The performance and reliability of a job scheduling tool can be significantly affected if maintenance patches and the latest enhancement upgrades are missing1. These patches and upgrades often contain fixes for known issues and improvements to the tool’s functionality. If they are not applied, the tool may continue to exhibit known problems or fail to benefit from enhancements that could improve its performance and reliability1. While factors like administrator password requirements23, number of support staff45, and tool classification64 can impact various aspects of a tool’s operation, they are less likely to be the direct cause of performance and reliability problems.

References:

Patch Management Definition & Best Practices - Rapid7

Password must meet complexity requirements - Windows Security

NIST’s New Password Rule Book: Updated Guidelines Offer Benefits and Risk - ISACA

Workforce optimization: Staff scheduling with AI | McKinsey

Poor Employee Scheduling - Major Consequences And Solutions

A Critical Analysis of Job Shop Scheduling in Context of Industry 4.0

A digital signature is a type of electronic signature that uses cryptographic techniques to provide authentication, integrity, and non-repudiation of digital documents. A digital signature is created by applying a mathematical function (called a hash function) to the document and then encrypting the result with the sender’s private key. The encrypted hash, along with the sender’s public key and other information, forms the digital signature. The receiver can verify the digital signature by decrypting it with the sender’s public key and comparing the hash with the one computed from the document. If they match, it means that the document has not been altered and that it was signed by the owner of the private key.

Option D is correct because a digital signature is unique to the sender using it, as it depends on the sender’s private key, which only the sender knows and controls. No one else can create a valid digital signature with the same private key, and no one can forge or modify a digital signature without being detected.

Option A is incorrect because a digital signature is not under control of the receiver, but rather under control of the sender. The receiver can only verify the digital signature, but cannot create or modify it.

Option B is incorrect because a digital signature is not capable of authorization, but rather capable of authentication. Authorization is the process of granting or denying access to resources based on predefined rules or policies. Authentication is the process of verifying the identity or legitimacy of a person or entity. A digital signature can authenticate the sender of a document, but it cannot authorize what actions the receiver can perform on the document.

Option C is incorrect because a digital signature does not dynamically validate modifications of data, but rather statically validates the integrity of data. A digital signature is based on a snapshot of the document at the time of signing, and any subsequent changes to the document will invalidate the digital signature. A digital signature does not monitor or update itself based on data modifications.

References:

CISA Online Review Course1, Module 5: Protection of Information Assets, Lesson 2: Encryption Basics, slide 13-14.

CISA Review Manual (Digital Version)2, Chapter 5: Protection of Information Assets, Section 5.2: Encryption Basics, p. 273-274.

CISA Review Manual (Print Version), Chapter 5: Protection of Information Assets, Section 5.2: Encryption Basics, p. 273-274.

CISA Questions, Answers & Explanations Database3, Question ID: QAE_CISA_712.

What Is a Digital Signature (and How Does it Work)1

What are digital signatures and certificates?2

Digital Signature Definition3

Examples and uses of electronic signatures4

What is an Electronic Signature?5

The greatest concern with the IT department and internal IS audit function both reporting to the CIO is the potential compromise of IS audit independence. Auditor independence refers to the impartiality and objectivity of an auditor in conducting an audit, free from conflicts of interest and bias1. It is crucial for ensuring the quality and reliability of financial reporting1. If the IS audit function reports to the CIO, who also oversees the IT department, it could create a conflict of interest that might compromise the impartiality and objectivity of the IS audit function.

References:

Auditor Independence - What is it, Rules, Importance, Examples

Data analytics is the process of collecting, transforming, analyzing, and visualizing data to gain insights and support decision making1. Data analytics can be used to facilitate the testing of a new account creation process by applying various techniques and methods to evaluate the quality, functionality, performance, and security of the process. One of the approaches that would utilize data analytics to test the new account creation process is to review new account applications submitted in the past month for invalid dates of birth. This approach would involve the following steps:

Extract the data of new account applications from the source system, such as a database or a web service, using appropriate tools and methods.

Transform and clean the data to ensure its accuracy, completeness, consistency, and validity, using techniques such as data profiling, data cleansing, data mapping, and data validation2.

Analyze the data to identify any anomalies, errors, or outliers in the date of birth field, using methods such as descriptive statistics, exploratory data analysis, hypothesis testing, or anomaly detection3.

Visualize the data to present the findings and insights in a clear and understandable way, using tools and techniques such as charts, graphs, dashboards, or reports.

By reviewing new account applications submitted in the past month for invalid dates of birth, the tester can use data analytics to:

Verify if the new account creation process is working as expected and meets the business requirements and specifications for the date of birth field.

Detect any defects or issues in the new account creation process that may cause invalid dates of birth to be accepted or rejected incorrectly.

Measure and monitor the performance and reliability of the new account creation process in terms of data quality, accuracy, and completeness.

Evaluate and improve the test coverage and effectiveness of the new account creation process by identifying any gaps or risks in the test cases or scenarios.

Therefore, option C is the correct answer.

Option A is not correct because attempting to submit new account applications with invalid dates of birth is not a data analytics approach, but a functional testing approach that involves executing test cases or scenarios manually or automatically to validate the behavior and functionality of the new account creation process. Option B is not correct because reviewing the business requirements document for date of birth field requirements is not a data analytics approach, but a requirements analysis approach that involves examining and understanding the needs and expectations of the stakeholders for the new account creation process. Option D is not correct because evaluating configuration settings for date of birth field requirements is not a data analytics approach, but a configuration testing approach that involves verifying if the settings and parameters of the new account creation process are correct and consistent with the requirements.

References:

What is Data Analytics? Definition & Examples1

Data Transformation: Definition & Examples2

Data Analysis: Definition & Examples3

Data Visualization: Definition & Examples

Functional Testing: Definition & Examples

Requirements Analysis: Definition & Examples

Configuration Testing: Definition & Examples

When an IS auditor discovers a security weakness in the database configuration, the next course of action should be to identify existing mitigating controls. This involves assessing whether any controls are already in place to address the weakness and mitigate the risk. Understanding the current state of controls helps the auditor determine the severity of the issue and whether additional corrective actions are necessary1. References: 1(https://www.isaca.org/resources/insights-and-expertise/audit-programs-and-tools)

Machine shredding is the process of using a shredding machine to physically destroy the media and make the data unrecoverable. This is more effective than software formatting, which only erases the data logically and may leave traces that can be recovered by special tools1. Encrypting and destroying keys may prevent unauthorized access to the data, but it does not erase the data from the media. Wiping and rewriting three times is unnecessary and may reduce the lifespan of the media, especially for solid state drives2. Machine shredding is also recommended by various security standards and guidelines for media disposal345.

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 step that 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

 Access to the data center is controlled by a mantrap provides the greatest assurance that only authorized individuals can access a data center. A mantrap is a physical security device that consists of a small space with two sets of interlocking doors, such that the first set of doors must close before the second set opens1. A mantrap prevents unauthorized entry by requiring authentication at both doors, such as biometric scanners, card readers, or PIN codes. A mantrap also prevents tailgating, which is the act of following an authorized person into a restricted area without proper authorization2. A mantrap can also detect and trap intruders who attempt to force their way through the doors.

The other options are less effective physical controls for data center access. The data center is patrolled by a security guard is a deterrent measure, but it does not prevent unauthorized access by itself. A security guard may not be able to monitor all entry points, or may be distracted, bribed, or overpowered by intruders. Access to the data center is monitored by video cameras is a detective measure, but it does not prevent unauthorized access either. Video cameras can record the activities of intruders, but they cannot stop them from entering or alert the security personnel in real time. ID badges must be displayed before access is granted is a preventive measure, but it relies on human verification, which can be prone to errors or manipulation. ID badges can also be lost, stolen, or forged by intruders.

References:

Mantrap (access control) - Wikipedia1

Tailgating (security) - Wikipedia2

 IT governance should be driven by organizational strategies. It provides a formal structure for organizations to produce measurable results toward achieving their strategies and ensures that IT investments support business objectives12. While business unit initiatives, balanced scorecards, and policies and standards can play a role in IT governance, they are tools or methods that support the implementation of the organizational strategies.

In the event of a disaster where the data center is no longer available, the first step should be to activate the call tree1. A call tree is a layered hierarchical communication model used to notify specific individuals of an event and coordinate recovery efforts1. This ensures that all relevant parties are informed about the situation and can begin executing their parts of the disaster recovery plan1.

References:

IT Disaster Recovery Plan | Ready.gov