CISA Exam Dumps - Isaca Certification Questions and Answers

 The best compensating control when segregation of duties is lacking in a small IS department is transaction log review. Transaction log review can help detect any unauthorized or fraudulent activities performed by IS staff who have access to multiple functions or systems. Transaction log review can also provide an audit trail for accountability and investigation purposes. The other options are not as effective as transaction log review in compensating for the lack of segregation of duties. Background checks are preventive controls that can help screen potential employees for any criminal records or dishonest behavior, but they do not prevent existing employees from abusing their access privileges. User awareness training is a detective control that can help educate users on how to report any suspicious or abnormal activities in the IS environment, but it does not monitor or verify the actions of IS staff. Mandatory holidays are deterrent controls that can discourage IS staff from engaging in fraudulent activities by requiring them to take periodic leave, but they do not prevent or detect such activities when they occur. References: CISA Review Manual (Digital Version), Chapter 3, Section 3.2

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-basedauthentication 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 first course of action that the auditor should recommend after finding that several employees are spending an excessive amount of time using social media sites for personal reasons is to implement policies addressing acceptable usage of social media during working hours. Policies can help define the scope, purpose, rules, and expectations of using social media in the workplace, both for personal and professional reasons. Policies can also specify the consequences of violating the policies, such as disciplinary actions or termination. Policies can help deter employees from misusing social media at work, which could affect their productivity, performance, or security. Policies can also help protect the organization from legal liabilities or reputational damages that could arise from inappropriate or unlawful employee behavior on social media. 

 The IS auditor’s next course of action after finding that firewalls are outdated and not supported by vendors should be to determine the risk of not replacing the firewall. Outdated firewalls may have known vulnerabilities that can be exploited by attackers to bypass security controls and access the network.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

 IT governance is a framework that defines the roles, responsibilities, and processes for aligning IT strategy with business strategy. The board of directors of an organization is ultimately accountable for IT governance and has the authority to approve the IT strategy. The board of directors does not need to address technical IT issues, be informed of all IT initiatives, or have an IT strategy committee, as these tasks can be delegated to other stakeholders or committees within the organization.

The most effective way to maintain network integrity when using mobile devices is to implement network access control. Network access control is a security control that regulates and restricts access to network resources based on predefined policies and criteria, such as device type, identity, location, or security posture. Network access control can help maintain network integrity when using mobile devices by preventing unauthorized or compromised devices from accessing or affecting networksystems or data. The other options are not as effective as network access control in maintaining network integrity when using mobile devices, as they do not address all aspects of network access or security. Implementing outbound firewall rules is a security control that filters and blocks network traffic based on source, destination, protocol, or port, but it does not regulate or restrict network access based on device characteristics or conditions. Performing network reviews is a monitoring activity that evaluates and reports on the performance, availability, or security of network resources, but it does not regulate or restrict network access based on device characteristics or conditions. Reviewing access control lists is a verification activity that validates and confirms the access rights and privileges of network users or devices, but it does not regulate or restrict network access based on device characteristics or conditions. References: CISA Review Manual (Digital Version), Chapter 5, Section 5.2.2

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 IMtraffic, 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

 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

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

References:

The Value of IT Governance - ISACA

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

Robust Governance - KPMG Global

 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.

 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 asymmetric encryption algorithms. Asymmetric encryption algorithms, also known as public key encryption, use two different keys for encryption and decryption: a public key that is shared with anyone who wants to communicate with the sender, and a private key that is kept secret by the sender. Asymmetric encryption algorithms are more secure than symmetric encryption algorithms, which use the same key for both encryption and decryption, but they are also slower and more computationally intensive. Therefore, relying exclusively on asymmetric encryption algorithms may not be efficient or practical for transporting large amounts of sensitive data between offices. A better method would be to use a combination of symmetric and asymmetric encryption algorithms, such as using asymmetric encryption to exchange a symmetric key and then using symmetric encryption to encrypt and decrypt the data.

The other options are not as concerning as option C. The method relying exclusively on the use of public key infrastructure (PKI) is not a concern, because PKI is a system that provides the services andmechanisms for creating, managing, distributing, using, storing, and revoking digital certificates that are based on asymmetric encryption algorithms. PKI enables secure and authenticated communication between parties who do not have a prior trust relationship. The method relying exclusively on the use of digital signatures is not a concern, because digital signatures are a way of verifying the authenticity and integrity of a message or document by using asymmetric encryption algorithms. Digital signatures ensure that the sender cannot deny sending the message or document, and that the receiver can detect any tampering or alteration of the message or document. The method relying exclusively on the use of 128-bit encryption is not a concern, because 128-bit encryption is a level of encryption that uses a 128-bit key to encrypt and decrypt data. 128-bit encryption is considered to be strong enough to resist brute-force attacks by modern computers. References: Asymmetric vs Symmetric Encryption: What are differences?, Public Key Infrastructure (PKI), Digital Signature, What is 128-bit Encryption?

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

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

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

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

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

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

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

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

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

The other possible findings are:

A lessons-learned session was never conducted: This is a significant finding, but not as significant as the lack of measurable benefits. A lessons-learned session is a process of capturing and documenting the knowledge, experience, and feedback gained from a project, both positive and negative. A lessons-learned session helps to identify the strengths and weaknesses of the project management process, as well as the best practices and lessons for future projects. A lessons-learned session should be conducted at the end of each projectphase 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 PostImplementation Review 2: What is Post-Implementation Review in Project Management?

An organization relies on an external vendor that uses a cloud-based Software as a Service (SaaS) model to back up its data. SaaS is a model in which the software is centrally hosted and accessed by the user via a web browser using the internet1. The vendor owns and maintains the software and the data, and the organization pays for the use of the service on a subscription or usage basis1. The greatest risk to the organization related to data backup and retrieval is that the vendor may be unable to restore critical data.

Data backup and retrieval are essential processes for ensuring the availability, integrity, and security of data in case of loss, corruption, or damage2. Data backup is the process of creating and storing copies of data in a separate location from the original data2. Data retrieval is the process of accessing and restoring the backed-up data when needed2. Critical data are data that are vital for the operation, continuity, and recovery of the organization3.

If the vendor is unable to restore critical data, the organization may face severe consequences, such as:

Business disruption: The organization may not be able to perform its core functions, deliver its products or services, or meet its customer or stakeholder expectations3.

Revenue loss: The organization may lose income, market share, or competitive advantage due to reduced sales, customer dissatisfaction, or reputation damage3.

Legal liability: The organization may face lawsuits, fines, or penalties for breaching contractual, regulatory, or statutory obligations related to data protection, privacy, or security3.

Recovery cost: The organization may incur additional expenses for repairing or replacing the lost or corrupted data, restoring the system functionality, or compensating the affected parties3.

The other options are not as great as the vendor’s inability to restore critical data. The organization may be locked into an unfavorable contract with the vendor, which may limit its flexibility, control, or choice over the service quality, cost, or duration4. However, this risk can be mitigated by negotiating better terms and conditions, reviewing the contract periodically, or switching to another vendor if possible4. The vendor may be unable to restore data by recovery time objective (RTO) requirements, which are the maximum acceptable time frames for restoring data after a disruption5. However, this risk can be reduced by setting realistic and achievable RTOs, monitoring the vendor’s performance, or implementing alternative recovery strategies if needed5. The organization may not be allowed to inspect the vendor’s data center, which may limit its visibility, transparency, or assurance over the service provider’s infrastructure, security, or compliance. However, this risk can be overcome by requesting third-party audits, certifications, or reports from the vendor that demonstrate their adherence to industry standards and best practices. Therefore, option B is the correct answer.

References:

What is SaaS? Software as a Service | Microsoft Azure

What is Data Backup? - Definition from Techopedia

Critical Data Definition

The Risks of Cloud Computing | Cloud Academy

Recovery Time Objective (RTO) Definition

[Cloud Computing Security Risks: What You Need To Know | CloudHealth by VMware]

The NEXT step for the IS auditor after noting that an employee who has recently changed roles within the organization still has previous access rights should be to B. determine the reason why access rights have not been revoked. Identifying the cause of this situation is crucial for understanding whether it’s due to oversight, process gaps, or other factors. Once the reason is determined, appropriate corrective actions can be recommended to ensure that access rights are aligned with the employee’s current role and responsibilities1.

A load balancer is a tool or application that distributes incoming network traffic among multiple servers in a server farm, so that no server is overwhelmed and the performance of the system is optimized1. A load balancer can help the agency to handle the large influx of traffic to a regional office by balancing the workload among the available servers and preventing service disruptions. A load balancer can also provide high availability and fault tolerance by rerouting traffic to online servers if a server becomes unavailable2.

A virtual firewall is a software-based firewall that protects a virtual network or environment from unauthorized access and malicious attacks. A virtualfirewall can enhance the security of the agency’s network, but it does not improve the performance of its servers.

A proxy server is an intermediary server that acts as a gateway between the client and the destination server, hiding the client’s IP address and providing caching and filtering functions. A proxy server can improve the security and privacy of the agency’s network, but it does not improve the performance of its servers.

A virtual private network (VPN) is a secure connection between two or more devices over a public network, such as the internet. A VPN can encrypt and protect the data transmitted over the network, but it does not improve the performance of the agency’s servers.

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

During a pre-deployment assessment, the best indication that a business case will lead to the achievement of business objectives is that the business case reflects stakeholder requirements. A business case is a document that explains the rationale, benefits, costs, and risks of a proposed project or initiative. A business case should align with the strategic goals and vision of the organization and address the needs and expectations of the stakeholders who are involved in or affected by the project12.

Stakeholder requirements are the conditions or capabilities that stakeholders expect from a project or its outcomes. Stakeholders can include customers, users, employees, managers, suppliers, regulators, and others who have an interest or stake in the project. Stakeholder requirements should be identified, analyzed, prioritized, validated, and documented throughout the project lifecycle34.

The business case should reflect stakeholder requirements because they provide the basis for defining the project scope, objectives, deliverables, quality standards, success criteria, and benefits realization. By reflecting stakeholder requirements, the business case can demonstrate how the project will add value to the organization and its stakeholders, justify the investment and resources required for the project, and facilitate the decision-making and approval process for the project5 .

Therefore, during a pre-deployment assessment, an IS auditor should look for evidence that the business case reflects stakeholder requirements as the best indication that the business case will lead to the achievement of business objectives.

References:

How to Write a Business Case (Template Included) - ProjectManager

How to Write a Business Case | Smartsheet

What are Stakeholder Requirements? | PM Study Circle

Stakeholder Requirements - Project Management Knowledge

Business Case vs Business Requirements - Difference Between

[Business Case Development - Project Management Docs]

A comprehensive asset inventory is the most important factor for the successful establishment of a security vulnerability management program. A security vulnerability management program is a systematic process of identifying, assessing, prioritizing, and remediating vulnerabilities in the organization’s IT environment1. A comprehensive asset inventory is a complete and accurate record of all the hardware, software, and network components that the organization owns or uses2. A comprehensive asset inventory helps the organization to:

Know what assets are in scope for vulnerability scanning and assessment3.

Identify the vulnerabilities that affect each asset and their severity level4.

Prioritize the remediation of vulnerabilities based on the criticality and value of each asset.

Track the status and progress of vulnerability remediation for each asset.

Measure the effectiveness and maturity of the vulnerability management program.

A robust tabletop exercise plan is a simulated scenario that tests the organization’s preparedness and response capabilities for a potential cyberattack or incident. A tabletop exercise plan is useful for validating and improving the organization’s incident response plan, but it is not essential for establishing a security vulnerability management program.

A tested incident response plan is a documented process that defines the roles, responsibilities, and actions of the organization’s personnel in the event of a cyberattack or incident. A tested incident response plan is important for minimizing the impact and restoring normal operations after a security breach, but it is not critical for establishing a security vulnerability management program.

An approved patching policy is a set of rules and guidelines that governs how the organization applies patches and updates to its IT systems and applications. An approved patching policy is a key component of the remediation phase of the vulnerability management program, but it is not sufficient for establishing a security vulnerability management program.

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

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

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

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

References:

Audit Testing Procedures - 5 Types and Their Use Cases

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

Stop-or-Go Sampling Definition

Variable Sampling Definition

The auditor implemented a specific control during the development of the system. This would impair the auditor’s independence, as it would create a self-review threat, which is a situation where an auditor has to evaluate or review the results of his or her own work or judgment1. A self-review threat may compromise the auditor’s objectivity and impartiality, as the auditor may be biased or influenced by his or her own involvement or interest in the system1. The auditor may also face a conflict of interest or a loss of credibility if he or she has to report on any issues or deficiencies related to the control he or she implemented.

While all the options can help reduce the risk of data leakage, providing education and guidelines to employees on the use of social networking sites would be the most effective. This is because it directly addresses the issue at hand - the use of social networking sites for business purposes1. Education and guidelines can help employees understand the risks associated withsocial media use and teach them how to safely and responsibly use these platforms for business purposes1. This includes understanding privacy settings, recognizing phishing attempts, and knowing what information should not be shared on these platforms1.

References:

10 Social Media Guidelines for Employees in 2023 - Hootsuite

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

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

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

Beta testing is the process of releasing a near-final version of a software product to a group of external users, known as beta testers, who provide feedback and report bugs based on their real-world experiences. Beta testingoffers various benefits for both the developers and the users of the software product. Some of these benefits are:

It reduces product failure risk via customer validation12.

It helps to test post-launch infrastructure1.

It helps to improve product quality via customer feedback12.

It allows for thorough bug detection and issue resolution3.

It enhances usability and user experience3.

It increases customer satisfaction and loyalty3.

Based on these benefits, the most important advantage of participating in beta testing of software products is D. It enables an organization to gain familiarity with new products and their functionality. By being involved in beta testing, an organization can learn how to use the new product effectively, discover its features and benefits, and provide suggestions for improvement. This can help the organization to adopt the new product faster, easier, and more efficiently when it is officially released. It can also give the organization a competitive edge over other users who are not familiar with the new product.

Data classification is the process of tagging data according to its type, sensitivity, and value to the organization. Data transformation is the process of changing the structure and format of data to make it usable for analysis and visualization. Both processes are important for data security and compliance, but they also pose some challenges.

One of the challenges is to ensure that the organization’s data classification policies are preserved during the process of data transformation. This means that the data should retain its original classification level and labels after it is transformed, and that the appropriate controls and protections are applied to the transformed data.

The best way to ensure this is to implement classification labels in metadata during data creation (D). Metadata is data that describes other data, such as its source, format, content, and context. By adding classification labels to metadata, the data can be easily identified and tracked throughout its lifecycle,including during data transformation. The labels can also help enforce the proper access rights and encryption standards for the data, regardless of its state or location.

A biometric access device installed at the entrance to a facility is a type of preventive control. Preventive controls are designed to deter or prevent undesirable events from occurring12. They are proactive measures that aim to inhibit incidents before they happen12. In this case, the biometricaccess device prevents unauthorized individuals from gaining access to the facility by requiring unique biological characteristics for authentication12.

References:

Guide to Biometric Access Control & Door Lock Security - Avigilon

Biometric access control: meaning, types and implementation - Smowl

The greatest segregation of duties conflict would occur if the individual who performs the related tasks also has approval authority for purchase requisitions and purchase orders. This is because these two tasks are directly related to each other and involve financial transactions. If the same person is responsible for both tasks, it could lead to potential fraud or error12. For instance, the individual could approve a purchase order for a personal need and then also approve the payment for it, leading to misuse of company funds12.

References:

Segregation of Duties: Examples of Roles, Duties & Violations - Pathlock

Functions in the Purchasing Process and how to Segregate Purchasing Duties

Segregation of duties is a fundamental concept in cybersecurity and information security. It refers to the practice of dividing critical tasks and responsibilities among different individuals or roles within an organization to reduce the risk of fraud, error, or unauthorized activities1. Segregation of duties is designed to prevent unilateral actions within an organization’s workflow, which can result in damaging events that would exceed the organization’s risk tolerance2.

There are different types of responses to risk associated with segregation of duties, depending on the level of risk and the cost-benefit analysis. Some of the common responses are:

Risk acceptance: This means acknowledging a risk and deciding to tolerate it without taking any corrective actions. This response is usually chosen when the risk is low or the cost of mitigation is too high3.

Risk mitigation: This means taking steps ahead of time to lessen the effects of a risk and make it less likely to happen. Some examples of mitigation strategies are making backup plans, setting up early warning systems, and staying away from high-risk areas or activities4.

Risk transference: This means shifting the negative impact of a risk and/or the responsibility for managing the risk response to a third party. Some examples of transference strategies are outsourcing, insurance, or contracts5.

Risk reduction: This means reducing the probability and/or severity of the risk below a threshold of acceptability. Some examples of reduction strategies are implementing controls, policies, or procedures to prevent or detect risks6.

Based on these definitions, the response to risk associated with segregation of duties that would incur the lowest initial cost is A. Risk acceptance. This is because risk acceptance does not require any additional resources or actions to address the risk. However, risk acceptance also implies that the organization is willing to bear the consequences of the risk if it occurs, which could be costly in the long run.

Therefore, the correct answer to your question is A. Risk acceptance.

The best audit procedure to determine whether a firewall is configured in compliance with the organization’s security policy is reviewing the parameter settings. Parameter settings are values or options that define how a firewall operates and functions, such as rules, filters, ports, protocols, etc. By reviewing the parameter settings of a firewall, an IS auditor can verify whether they match with the organization’s security policy, which is a document that outlines the security objectives, requirements, and guidelines for an organization’s information systems and resources. Reviewing the system log is a possible audit procedure to determine whether a firewall is configured in compliance with the organization’s security policy, but it is not the best one, as a system log records events or activities thatoccur on a firewall, such as connections, requests, responses, errors, alerts, etc., and may not indicate whether they comply with the organization’s security policy. Interviewing the firewall administrator is a possible audit procedure to determine whether a firewall is configured in compliance with the organization’s security policy, but it is not the best one, as a firewall administrator may not provide accurate or reliable information about the firewall configuration, and may have conflicts of interest or ulterior motives. Reviewing the actual procedures is a possibleaudit procedure to determine whether a firewall is configured in compliance with the organization’s security policy, but it is not the best one, as actual procedures describe how a firewall is configured and maintained, such as installation, testing, updating, etc., and may not reflect whether they comply with the organization’s security policy. 

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

 Restricting program functionality according to user security profiles is the best control for ensuring appropriate segregation of duties within an accounts payable department. An IS auditor should verify that the access rights and permissions of the accounts payable staff are based on their roles and responsibilities, and that they are not able to perform incompatible or conflicting functions such as creating, approving, or paying invoices. This will help to prevent fraud, errors, or abuse of authority within the accounts payable process. The other options are less effective controls for ensuring segregation of duties, as they may involve audit trails, access restrictions, or user identification. References:

CISA Review Manual (Digital Version), Chapter 6, Section 6.31

CISA Review Questions, Answers & Explanations Database,Question ID 223

Ensuring access rules agree with policies is an information systems security officer’s primary responsibility for business process applications. An information systems security officer should verifythat the access controls implemented for the business process applications are consistent with the organization’s security policy and objectives. The other options are not the primary responsibility of an information systems security officer, but rather the tasks of an application owner, a senior management, or a business analyst. References:

CISA Review Manual (Digital Version), Chapter 7, Section 7.3.11

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

This is the most helpful method for measuring benefits realization for a new system, because it involves evaluating the actual outcomes and impacts of the system after it has been implemented and used for a certain period of time. A post-implementation review can compare the actual benefits with the expected benefits that were defined in the business case or the benefits realization plan, and identify any gaps, issues, or opportunities for improvement. A post-implementation review can also assess theeffectiveness, efficiency, and satisfaction of the system’s users, stakeholders, and customers, and provide feedback and recommendations for future enhancements or changes.

The other options are not as helpful as post-implementation review for measuring benefits realization for a new system:

Function point analysis. This is a technique that measures the size and complexity of a software system based on the number and types of functions it provides. Function point analysiscan help estimate the cost, effort, and time required to develop, maintain, or enhance a software system, but it does not measure the actual benefits or value that the system delivers to the organization or its users.

Balanced scorecard review. This is a strategic management tool that measures the performance of an organization or a business unit based on four perspectives: financial, customer, internal process, and learning and growth. A balanced scorecard review can help align the organization’s vision, mission, and goals with its activities and outcomes, but it does not measure the specific benefits or impacts of a new system.

Business impact analysis (BIA). This is a process that identifies and evaluates the potential effects of a disruption or disaster on the organization’s critical business functions and processes. A BIA can help determine the recovery priorities, objectives, and strategies for the organization in case of an emergency, but it does not measure the benefits or value of a new system.

IT disaster recovery time objectives (RTOs) are the maximum acceptable time that an IT system can be unavailable after a disaster before it causes unacceptable consequences for the business. IT RTOs should be based on the business-defined criticality of the systems, which reflects how important they are for supporting the business processes and functions. The maximum tolerable loss of data, the nature of the outage, and the maximum tolerable downtime (MTD) are also factors that affect the IT RTOs, but they are not the primary basis for determining them. 

The most important task for an IS auditor to perform after the merger of two organizations is to verify that access privileges have been reviewed. Access privileges are the permissions granted to users, groups, or roles to access, modify, or manage IT resources, such as systems, applications, data, or networks. After a merger, the IS auditor should ensure that the access privileges of both organizations are aligned with the new business objectives, policies, and processes, and that there are no conflicts, overlaps, or gaps in the access rights. The IS auditor should also verify that the access privileges are based on the principle of least privilege, which means that users are granted only the minimum level of access required to perform their tasks.

The other options are not as important as verifying that access privileges have been reviewed:

Investigating access rights for expiration dates is a useful task, but it is not the most important one. Expiration dates are the dates when access rights are automatically revoked or suspended after a certain period of time or after a specific event. The IS auditor should check that the expiration dates are set appropriately and enforced consistently, but this is not as critical as reviewing the access privileges themselves.

Updating the continuity plan for critical resources is a necessary task, but it is not the most urgent one. A continuity plan is a document that outlines the procedures and actions to be taken in the event of a disruption or disaster that affects the availability of IT resources. The IS auditor should update the continuity plan to reflect the changes and dependencies introduced by the merger, but this can be done after verifying that the access privileges are secure and compliant.

Updating the security policy is an essential task, but it is not the most immediate one. A security policy is a document that defines the rules and guidelines for securing IT resources and protecting information assets. The IS auditor should update the security policy to incorporate the best practices and standards of both organizations, and to address any new risks or threats posed by the merger, but this can be done after verifying that the access privileges are aligned with the policy.

The most information about the transaction audit trail in an online application can be obtained by reviewing the system/process flowchart. A system/process flowchart is a diagram that illustrates the sequence of steps, activities, or events that occur within or affect a system or process. A system/process flowchart can provide the most information about the transaction audit trail in an online application, by showing how transactions are initiated, processed, recorded, and completed, and identifying the inputs, outputs, controls, and dependencies involved in each transaction. File layouts are specifications that define how data are structured or organized on a file or database. File layouts can provide some information about the transaction audit trail in an online application, by showing what data elements are stored or retrieved for each transaction, but they do not provide information about how transactions are executed or tracked. Data architecture is a framework that defines how data are collected, stored, managed, and used within an organization or system. Data architecture can provide some information about the transaction audit trail in an online application, by showing what data sources, models, standards, and policies are used for each transaction, but they do not provide information about how transactions are performed or monitored. Source code documentation is a description or explanation of the source code of a software program or application. Source code documentation can provide some information about the transaction audit trail in an online application, by showing what logic, algorithms, or functions are used for each transaction, but they do not provide information about how transactions are handled or audited. 

The greatest concern for an IS auditor in this scenario is that the user department will manage access rights to the new accounting system. This could pose a significant risk of unauthorized access, segregation of duties violations, data tampering and fraud. The IS auditor should ensure that access rights are defined, approved and monitored by an independent function, such as IT security or internal audit. The other options are not as concerning as option C, as they can be mitigated by other controls or procedures. Data migration is an important part of the system replacement project, but it can be performed by another party or verified by the IS auditor. The timing of the replacement near year-end reporting is a challenge, but it can be managed by proper planning, testing and contingency plans. Testing performed by the third-party consultant is acceptable, as long as it is reviewed and validated by the IS auditor or another independent party. References: CISA Review Manual (Digital Version) 1, Chapter 3: Information Systems Acquisition, Development & Implementation, Section 3.4: System Implementation.

 Identifying required IT skill sets that support key business processes is the first step to enable the alignment of IT staff development plans with IT strategy. An IT strategy is a plan that defines how IT will support the organization’s goals and objectives. Identifying required IT skill sets means determining the knowledge, abilities, and competencies that IT staff need to perform their roles and responsibilities effectively and efficiently. This can help to align IT staff development plans with IT strategy, as well as to identify and address any skill gaps or needs within the IT workforce. The other options are not the first steps to enable alignment, but rather possible subsequent actions that may depend on the required IT skill sets. References:

CISA Review Manual (Digital Version), Chapter 5, Section 5.11

CISA Review Questions, Answers & ExplanationsDatabase, Question ID 229

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

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

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

 Including the data warehouse in the impact analysis for any changes in the source system is the best way to prevent data quality issues caused by changes from a source system. A data warehouse is a centralized repository of integrated data from one or more source systems. An impact analysis is a technique of assessing the potential effects and consequences of a change on the existing system or environment. Including the data warehouse in the impact analysis can help to identify and mitigate any data quality issues that may arise from changes in the source system, such as data inconsistency, incompleteness, or inaccuracy. The other options are less effective ways to prevent data quality issues, as they may involve data quality alerts, approval for changes, or access restrictions. References:

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

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Source code for the software must be placed in escrow is the most important requirement to include in the vendor contract to ensure continuity. Source code is the original code of a software program that can be modified or enhanced by programmers. Placing source code in escrow means depositing it with a trusted third party who can release it to the customer under certain conditions, such as vendor bankruptcy, breach of contract, or failure to provide support. This can help to ensure continuity of the software product and its maintenance in case of vendor unavailability or dispute. The other options are less important requirements to include in the vendor contract, as they may involve support availability, disaster recovery plan, or staff training. References:

CISA Review Manual (Digital Version), Chapter 5, Section 5.51

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 The business process supported by the system is the most important factor for an IS auditor to understand when planning an audit to assess application controls of a cloud-based system. An IS auditor should have a clear understanding of the business objectives, requirements, and risks of the process, as well as the expected outputs and outcomes of the system. This will help the IS auditor to determine the scope, objectives, and criteria of the audit, as well as to identify and evaluate the key application controls that ensure the effectiveness, efficiency, and reliability of the process. The other options are less important factors that may provide additional information or context for the audit, but not its primary focus. References:

CISA Review Manual (Digital Version), Chapter 5,Section 5.31

CISA Review Questions, Answers & Explanations Database, Question ID 212

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

 The IS auditor’s primary concern when auditing the proposed acquisition of new computer hardware is that a clear business case has been established. A business case is a document that justifies the need, feasibility, and benefits of a proposed project or investment. A clear business case can help to ensure that the acquisition of new computer hardware is aligned with the organization’s goals, objectives, and requirements, and that it provides value for money and return on investment. The other options are not as important as establishing a clear business case, as they do not address the rationale or justification for acquiring new computer hardware. References: CISA Review Manual, 27th Edition, page 467

 The organizational policies and procedures are the first source of guidance for an IS auditor when planning a customer data privacy audit. They provide the framework and objectives for ensuring compliance with legal and regulatory requirements, customer agreements and data classification. The IS auditor should review them first to understand the scope, roles and responsibilities, standards and controls related to customer data privacy in the organization. The other options are also important, but they are secondary sources of information thatshould be reviewed after the organizational policies and procedures. References: CISA Review Manual (Digital Version) 1, Chapter 2: Governance and Management of Information Technology, Section 2.5: Privacy Principles and Policies.

This must be in place before an IS auditor initiates audit follow-up activities, because it indicates that management has acknowledged and accepted the audit findings and recommendations, and has agreed to take corrective actions within a specified timeframe. Audit follow-up activities are the processes and procedures that the IS auditor performs to verify that management has implemented the agreed-upon actions effectively and in a timely manner, and that the audit findings have been resolved or mitigated.

The other options are not required to be in place before an IS auditor initiates audit follow-up activities:

Available resources for the activities included in the action plan. This is a factor that may affect the feasibility and success of the action plan, but it is not a prerequisite for the audit follow-up activities. The IS auditor should assess the availability and adequacy of the resources for the action plan during the audit planning and execution phases, and provide recommendations accordingly. However, the IS auditor does not need to wait for the resources to be available before initiating the audit follow-up activities.

A heat map with the gaps and recommendations displayed in terms of risk. This is a tool that may help the IS auditor prioritize and communicate the gaps and recommendations, but it is not a requirement for the audit follow-up activities. A heat map is a graphical representation of data that uses colors to indicate the level of risk or impact of each gap or recommendation. The IS auditor may use a heat map to support the audit report or presentation, but it does not replace the need for a management response with a committed implementation date.

Supporting evidence for the gaps and recommendations mentioned in the audit report. This is a component that should be included in the audit report, but it is not a condition for the audit follow-up activities. Supporting evidence is the information or data that supports or substantiates the audit findings and recommendations. The IS auditor should collect and document sufficient, reliable, relevant, and useful evidence during the audit execution phase, and present it in the audit report. However, the IS auditor does not need to have supporting evidence in place before initiating the audit follow-up activities.

 The most significant risk associated with a new health records system that replaces a legacy system is data not being converted correctly, resulting in inaccurate patient records. Data conversion is the process of transferring data from one format or system to another. Data conversion is a critical step in implementing a new health records system, as it ensures that the patient data are consistent, complete, accurate, and accessible in the new system. Data not being converted correctly may cause errors, discrepancies, or losses in patient records, which may have serious implications for patient safety, quality of care, legal compliance, and privacy protection. Staff not being involved in the procurement process, creating user resistance to the new system; the deployment project experiencing significant overruns, exceeding budget projections; and the new system having capacity issues, leading to slow response times for users are also risks associated with a new health records system implementation, but they are not as significant as data not being converted correctly. References: [ISACA CISA Review Manual 27th Edition], page 281.

The impact if corrective actions are not taken is the most important factor to consider when scheduling follow-up audits. An IS auditor should prioritize the follow-up audits based on the risk and potential consequences of not addressing the audit findings and recommendations. The other options are less important factors that may affect the timing and scope of the follow-up audits, but not their necessity or urgency. References:

CISA Review Manual(Digital Version), Chapter 2, Section 2.5.31

CISA Review Questions, Answers & Explanations Database, Question ID 207

Analyzing risks posed by new regulations is an appropriate role of internal audit in helping to establish an organization’s privacy program. An internal auditor can provide assurance and advisory services on the compliance and effectiveness of the privacy program, as well as identify and assess the potential risks and impacts of new or changing privacy regulations. The other options are not appropriate roles of internal audit, but rather the responsibilities of the management, the information security officer, or the privacy officer. References:

CISA Review Manual (Digital Version), Chapter 7, Section 7.4.21

CISA Review Questions, Answers & ExplanationsDatabase, Question ID 216