CISA Exam Dumps - Isaca Certification Questions and Answers

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

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

References:

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

Corporate Finance Institute, Audit Risk Model2

The issue seems to stem from a breakdown in the workflow or process for handling assets that are due for destruction12. By examining the workflow, the IS auditor can identify where the process failed, such as why the vendor was not notified about the hard drives12. This could involve reviewing procedures for inventory management, communication with vendors, and tracking of assets due for destruction12. The findings can then be used to improve the workflow and prevent similar issues in the future12.

References:

How To Properly Destroy A Hard Drive - Tech News Today

How to safely and securely destroy hard disk data - iFixit

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

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

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

References:

Steering Committee: Definition, Roles & Meeting Tips - ProjectManager

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

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

The 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 thecurrent 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

When identifying which servers are no longer required, reviewing server CPU usage trends is the most helpful approach. Monitoring the CPU usage over time provides insights into how actively a server is being utilized. Servers with consistently low CPU usage may be candidates for consolidation or decommissioning. By analyzing CPU utilization patterns, IT management can make informed decisions about which servers can be retired without impacting performance or availability1.

References:

1. ISACA. “Technical Guide on IT Migration Audit.” 1(http://kb.icai.org/pdfs/PDFFile5b278a12a66758.27269499.pdf)

2. Zapier. “IT audit: The ultimate guide [with checklist].” 2(https://zapier.com/blog/it-audit/)

3. ISACA. “CISA Certification | Certified Information Systems Auditor.” 3(https://www.isaca.org/credentialing/cisa)

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.

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

References:

Parallel simulation in IT testing - Universal CPA Review

5 code review best practices - Work Life by Atlassian

How to Make Good Code Reviews Better - Stack Overflow

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

Method Validation and Verification - University of Utah

Sample Procedure for Method Validation - NIST

Method validation and verification - CFS

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

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

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

Answer: A. Risk policies

Risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. Risk appetite reflects the organization’s risk culture, strategy, and tolerance, and guides the organization’s risk management practices. The most useful informationabout risk appetite can be obtained from the risk policies, which are the documents that define the organization’s risk management framework, principles, objectives, roles, responsibilities, and processes. Risk policies also establish the criteria and thresholds for identifying, assessing, prioritizing, mitigating, and monitoring risks, as well as the reporting and escalation mechanisms for risk issues. By reviewing the risk policies, an IS auditor can evaluate whether they are consistent, comprehensive, and aligned with the organization’s risk appetite and whether they provide clear guidance and direction for managing risks effectively.

The other options are not correct because they are either not the most useful or not relevant to risk appetite. Risk assessments are the processes of identifying, analyzing, and evaluating the risks that may affect the organization’s objectives. Risk assessments provide information about the current risk profile and exposure of the organization, but they do not indicate the organization’s risk appetite or preferences. Prior audit reports are the documents that summarize the findings, recommendations, and conclusions of previous audits. Prior audit reports may provide information about the past performance and issues of the organization’s risk management practices, but they do not reflect the organization’s risk appetite or expectations. Management assertion is a statement or declaration made by management about the accuracy, completeness, validity, or reliability of a certain fact or data. Management assertion may provide information about the management’s confidence or opinion on a specific risk or issue, but it does not represent the organization’s risk appetite or criteria.

 File checksums are values that are calculated from the contents of a file and can detect any changes or corruption in the file. They are used to verify that the files that are transferred or processed through system interfaces are not altered in any way. File checksums are more effective than periodic audits, file counts, or IT operator monitoring, which are other types of controls that can help ensure the integrity of system interfaces, but they are not as reliable or timely as file checksums.

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

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

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

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

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

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

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

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

The most useful tool for determining whether the goals of IT are aligned with the organization’s goals is a balanced scorecard. A balanced scorecard is a strategic managementsystem that translates an organization’s vision and mission into a set of objectives and measures across four perspectives: financial, customer, internal process, and learning and growth. A balanced scorecard helps align IT goals with organizational goals by linking them to a common strategy map that shows how IT contributes to value creation and performance improvement in each perspective. A balanced scorecard also helps monitor and evaluate IT performance against predefined targets and indicators.

Enterprise dashboard, enterprise architecture (EA), and key performance indicators (KPIs) are not the most useful tools for determining whether the goals of IT are aligned with the organization’s goals. These tools may help communicate, design, or measure IT goals or activities, but they do not provide a comprehensive framework for aligning IT goals with organizational goals across multiple dimensions.

Data disposal controls are the measures that ensure that data are securely and permanently erased or destroyed when they are no longer needed or authorized to be retained. Data disposal controls support business strategic objectives by reducing the risk of data breaches, complying with dataprivacy regulations, optimizing the use of storage resources, and enhancing the reputation and trust of the organization1.

A media sanitization policy is a document that defines the roles, responsibilities, procedures, and standards for sanitizing different types of media that contain sensitive or confidential data. Media sanitization is the process of removing or modifying data on a media device to make it unreadable or unrecoverable by any means. Media sanitization can be achieved by various methods, such as overwriting, degaussing, encryption, or physical destruction2.

A media sanitization policy would provide an IS auditor with the greatest assurance that data disposal controls support business strategic objectives because it demonstrates that the organization has a clear and consistent approach to protect its data from unauthorized access or disclosure throughout the data life cycle. Amedia sanitization policy also helps the organization to comply with various data privacy regulations, such as the EU General Data Protection Regulation (GDPR), the US Health Insurance Portability and Accountability Act (HIPAA), or the Payment Card Industry Data Security Standard (PCI DSS), that require proper disposal of personal or sensitive data3.

The other options are not as effective as a media sanitization policy in providing assurance that data disposal controls support business strategic objectives. A media recycling policy is a document that defines the criteria and procedures for reusing media devices that have been sanitized or erased. A media recycling policy can help the organization to save costsand reduce environmental impact, but it does not address how the data are disposed of in the first place4. A media labeling policy is a document that defines the rules and standards for labeling media devices that contain sensitive or confidentialdata. A media labeling policy can help the organization to identify and classify its data assets, but it does not specify how the data are sanitized or destroyed when they are no longer needed. A media shredding policy is a document that defines the methods and procedures for physically destroying media devices that contain sensitive or confidential data. A media shredding policy can be a part of a media sanitization policy, but it is not sufficient to cover all types of media devices or data disposal scenarios.

References:

ISACA, CISA Review Manual, 27th Edition, 2019

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

Secure Data Disposal and Destruction: 6 Methods to Follow1

Why (and How to) Dispose of Digital Data2

What is Data Disposition? The Complete Guide3

Data Disposition: What is it and why should it be part of your data retention policy?

The primary factor to determine system criticality within an organization is the maximum allowable downtime (MAD). MAD is the maximum time frame during which recovery must become effective before an outage compromises the ability of an organization to achieve its business objectives and/or survival. MAD reflects the business impact of a system outage onthe organization’s operations, reputation, compliance, and finances. MAD can help to prioritize system recovery efforts, allocate resources, and establish recovery objectives.

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

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

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

References:

Database Auditing - Satori

The IS auditor’s next course of action should be to report this control process weakness to senior management, as it may indicate a lack of oversight and accountability for the reporting system. Read-only users may have access to sensitive or confidential information that should be restricted or monitored. Periodic reviews of read-only users are a good practice to ensure that the access rights are still valid and appropriate for the users’ roles and responsibilities. Reporting this weakness to senior management will also allow them to take corrective actions or implement compensating controls if needed.

Option A is incorrect because reviewing the list of end users and evaluating for authorization is not the IS auditor’s responsibility, but rather the system owner’s or administrator’s. The IS auditor should only verify that such reviews are performed and documented by the responsible parties.

Option C is incorrect because verifying management’s approval for this exemption is not sufficient to address the control process weakness. Even if there is a valid reason for not performing periodic reviews of read-only users, the IS auditor should still report this as a potential risk and recommend mitigating controls.

Option D is incorrect because obtaining a verbal confirmation from IT for this exemption is not adequate evidence or documentation. The IS auditor should obtain written approval from management and verify that it is aligned with the organization’s policies and standards.

References:

CISA Review Manual (Digital Version)1, Chapter 1: The Process of Auditing Information Systems, Section 1.4: Audit Evidence, p. 31-32.

CISA Review Manual (Print Version), Chapter 1: The Process of Auditing Information Systems, Section 1.4: Audit Evidence, p. 31-32.

CISA Online Review Course2, Module 1: The Process of Auditing Information Systems, Lesson 4: Audit Evidence, slide 9-10.

CISA Questions, Answers & Explanations Database3, Question ID: QAE_CISA_710.

 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

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

The IS auditor’s best course of action if they suspect an organization’s computer may have been used to commit a crime is to contact the incident response team to conduct an investigation. The incident response team is a group of experts who are responsible for responding to security incidents, such as data breaches, ransomware attacks, or cybercrimes. The incident response team can help to preserve and collect digital evidence, determine the scope and impact of the incident, contain and eradicate the threat, and restore normal operations. The IS auditor should not examine the computer themselves, as they may inadvertently alter or destroy potential evidence, or compromise the chain of custody. The IS auditor should also not notify local law enforcement before further investigation, as this may escalatethe situation unnecessarily or interfere with the internal investigation process. The IS auditor should advise management of the crime after the investigation, or as soon as possible if there is an imminent risk or legal obligation to do so.

 Enterprise architecture (EA) is the most helpful to an IS auditor reviewing the alignment of planned IT budget with the organization’s goals and strategic objectives. EA is a well-defined practice for conducting enterprise analysis, design, planning, and implementation, using a comprehensive approach at all times, for the successful development and execution of strategy1. EA provides a blueprint for an effective IT strategy and guides the controlled evolution of IT in a way that delivers business benefit in a cost-effective way2. By reviewing the EA, the IS auditor can evaluate how well the planned IT budget supports the business vision, strategy, objectives, and capabilities of the organization.

The other options are not as helpful as EA for reviewing the alignment of planned IT budget with the organization’s goals and strategic objectives. BIA is a process of determining the criticality of business activities and associated resource requirements to ensure operational resilience and continuity of operations during and after a business disruption3. BIA quantifies the impacts of disruptions on service delivery, risks to service delivery, and recovery time objectives (RTOs) and recovery point objectives (RPOs)3. BIA is useful for developing strategies, solutions, and plans for business continuity and disaster recovery, but it does not directly address the alignment of planned IT budget with the organization’s goals and strategic objectives. Risk assessment report is a document that contains the results of performing a risk assessment or the formal output from the process of assessing risk4. Risk assessment is a method to identify, analyze, and control hazards and risks present in a situation or a place5. Risk assessment report is useful for identifying and mitigating potential threats and issues that are detrimental to the business or an enterprise, but it does not directly addressthe alignment of planned IT budget with the organization’s goals and strategic objectives. Audit recommendations are guidance that highlights actions to be taken by management6. When implemented, process risks should be mitigated, and performance should be enhanced6. Audit recommendations are useful for improving the quality and reliability of the information system and its outputs, but they do not directly address the alignment of planned IT budget with the organization’s goals and strategic objectives. Therefore, option A is the correct answer.

The type of review that is most important to conduct when an IS auditor is informed that a recent internal exploitation of a bug has been discovered in a business application is C. Forensic audit. A forensic audit is a type ofaudit that involves collecting, analyzing, and preserving evidence of fraud, corruption, or other illegal or unethical activities1. A forensic audit can help the IS auditor to identify and document the source, scope, and impact of the exploitation, as well as the perpetrators, motives, and methods involved. A forensic audit can also help the IS auditor to provide recommendations for preventing or mitigating future exploitations, and to support any legal actions or investigations that may arise from the incident2.

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

References:

Auditing Guidelines for Artificial Intelligence - ISACA

An In-Depth Guide To Audit AI Models - Censius

The 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 theorganization’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.

 The best recommendation to mitigate the risk of eavesdropping associated with an API integration implementation is to implement Transport Layer Security (TLS). TLS is a cryptographic protocol that provides secure communication over a network by encrypting the data in transit and authenticating the parties involved. TLS can prevent unauthorized parties from intercepting, modifying or tampering with the data exchanged between the API endpoints. Encrypting the XML file, implementing SOAP, and masking the API endpoints are not sufficient to mitigate the risk of eavesdropping, as they do not provide end-to-end encryption or authentication for the API communication. References: IS Auditand Assurance Tools and Techniques, CISA Certification | Certified Information Systems Auditor | ISACA

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

 When an IS audit reveals that a firewall was unable to recognize a number of attack attempts, the auditor’s best recommendation is to place an intrusion detection system (IDS) between the firewall and the Internet, as this would provide an additional layer of security and alert the organization of any malicious traffic that bypasses or penetrates the firewall. Placing an IDS between the firewall and the demilitarized zone (DMZ), the organization’s web server, or the organization’s network would not be as effective, as it would only monitor the traffic that has already passed through the firewall. References: CISA Review Manual (DigitalVersion), Chapter 5, Section 5.4.3

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. 

A full interruption test is the most realistic and reliable way to ensure that recovery time objectives (RTOs) are met for an organization’s disaster recovery plan (DRP). RTOs are the maximum amount of time that a business can tolerate being offline after a disaster. A full interruption test involves shutting down the primary site and switching over to the backup site, simulating a real disaster scenario. This test can measure the actual time it takes to restore the systems, applications, and functions that are critical for the business continuity. A full interruption test can also reveal any issues or gaps in the DRP that might affect the recovery process.

The other options are not as effective as a full interruption test for ensuring RTOs are met. A cyber resilience test is a type of DR test that focuses on the ability to withstand and recover from cyberattacks. It does not necessarily cover other types of disasters or test the entire DRP. A tabletop test is a low-impact DR test that involves a walkthrough of the DRP with the key stakeholders and staff. It does not involve any actual switching over or testing of the backup systems. A parallel test is a type of DR test that involves running the backup systems alongside the primary systems, without disrupting the normal operations. It does not measure the time it takes to switch over or resume operations at the backup site.

References:

Best Practices For Disaster Recovery Testing

Disaster recovery testing

Disaster Recovery Testing: Everything to Know

The most important control for virtualized environments is hardening for the hypervisor and guest machines. Hardening is the process of applying security measures and configurations to reduce the vulnerabilities and risks of a system or device. Hardening for the hypervisor and guest machines is essential for protecting the virtualized environments from attacks, as they are exposed to various threats from both the physical and virtual layers. Hardening for the hypervisor and guest machines involves the following steps:

Applying the latest patches and updates for the hypervisor and guest operating systems, as well as the applications and drivers running on them.

Configuring the firewall and network settings for the hypervisor and guest machines, to restrict and monitor the network traffic and prevent unauthorized access or communication.

Disabling or removing any unnecessary or unused features, services, accounts, or ports on the hypervisor and guest machines, to minimize the attack surface and reduce the potential entry points for attackers.

Enforcing strong authentication and authorization policies for the hypervisor and guest machines, to ensure that only authorized users or administrators can access or manage them.

Encrypting the data and communication for the hypervisor and guest machines, to protect the confidentiality and integrity of the information stored or transmitted on them.

Implementing logging and auditing mechanisms for the hypervisor and guest machines, to record and track any activities or events that occur on them, and enable detection and investigation of any incidents or anomalies.

Hardening for the hypervisor and guest machines can help prevent or mitigate common attacks on virtualized environments, such as:

Hypervisor escape: An attack where a malicious guest machine breaks out of its isolated environment and gains access to the hypervisor or other guest machines.

Hypervisor compromise: An attack where an attacker exploits a vulnerability or misconfiguration in the hypervisor to gain control over it or its resources.

Guest compromise: An attack where an attacker exploits a vulnerability or misconfiguration in a guest machine to gain access to its data or applications.

Guest impersonation: An attack where an attacker creates a fake or cloned guest machine to trick other guests or users into interacting with it.

Guest denial-of-service: An attack where an attacker consumes or exhausts the resources of a guest machine to disrupt its availability or performance.

Therefore, hardening for the hypervisor and guest machines is the most important control for virtualized environments, as it can enhance their security, reliability, and performance. For more information about hardening for virtualized environments, you can refer to some of these web sources:

Hypervisor security on the Azure fleet

Chapter 2: Hardening the Hyper-V host

Plan for Hyper-V security in Windows Server

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

Compared to developing a system in-house, acquiring a software package means that the need for testing by end users is unchanged. This is because end users are still the ultimate customers and beneficiaries of the system, and they need to ensure that the software package meets their requirements, expectations, and satisfaction. End user testing, also known as user acceptance testing (UAT) or beta testing, is the final stage of testing performed by the user or client to determine whether the softwarecan be accepted or not1. Enduser testing is important for both in-house developed and acquired software packages, as it helps to verify the functionality, usability, performance, and reliability of the system2. End user testing also helps to identify and resolve any defects, errors, or issues that may not have been detected by the developers or vendors3.

Therefore, option B is the correct answer.

Option A is not correct because end user testing is not eliminated by acquiring a software package. Even though the software package may have been tested by the vendor or supplier, it may still have bugs, compatibility issues, or configuration problems that need to be fixed before deployment4. Option C is not correct because end user testing is not increased by acquiring a software package. The scope and extent of end user testing depend on various factors, such as the complexity, criticality, and customization of the system, and not on whether it is developed in-house or acquired. Option D is not correct because end user testing is not reduced by acquiring a software package. The software package may still require modifications or integrations to suit the specific needs and environment of the organization, and these changes need to be tested by the end users.

References:

Chapter 4 Methods of Software Acquisition5

What is User Acceptance Testing (UAT): A Complete Guide1

What Is End-to-End Testing? (With How-To and Example)3

How to Evaluate New Software in 5 Steps4

User Acceptance Testing (UAT) in ERP Projects

User Acceptance Testing for Packaged Software

The type of risk that would most influence the selection of a sampling methodology is detection risk (option D). This is because:

Detection risk is the risk that the auditor will not detect a material misstatement that exists in an assertion1. Detection risk depends on the effectiveness of the audit procedures and how well they are applied by the auditor1.

The selection of a sampling methodology is part of the design of audit procedures, which aims to reduce detection risk to an acceptable level1. The auditor should consider the following factors when selecting a sampling methodology23:

The objectives of the audit procedure and the related assertions.

The characteristics of the population from which the sample will be drawn, such as its size, homogeneity, and structure.

The sampling technique to be used, such as random, systematic, haphazard, or judgmental.

The sample size and the method of selecting sample items.

The evaluation of the sample results and the projection of errors to the population.

The auditor should also consider the advantages and disadvantages of different sampling methodologies, such as statistical and non-statistical sampling23. Statistical sampling is a sampling technique that uses random selection and probability theory to evaluate sample results. Non-statistical sampling is a sampling technique that does not use random selection or probability theory to evaluate sample results. Some of the advantages and disadvantages are as follows23:

Statistical sampling allows the auditor to measure and control sampling risk, which is the risk that the sample is not representative of the population. Statistical sampling also allows the auditor to quantify the precision and reliability of the sample results. However, statistical sampling requires more technical knowledge and skills, as well as more time and cost, than non-statistical sampling.

Non-statistical sampling relies on the auditor’s professional judgment and experience to select and evaluate sample items. Non-statistical sampling is more flexible and less complex than statistical sampling. However, non-statistical sampling does not provide an objective basis for measuring and controlling sampling risk, nor does it allow the auditor to quantify the precision and reliability of the sample results.

Therefore, the type of risk that would most influence the selection of a sampling methodology is detection risk (option D), as it determines how effective and efficient the audit procedures should be in order to provide sufficient appropriate audit evidence.

References: 1: Audit Sampling - Overview, Purpose, Importance, and Types 2: Audit Sampling | Auditing and Attestation | CPA Exam FAR 3: Audit Sampling | ACCA Qualification | Students | ACCA Global

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

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

References:

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

Five Common Spreadsheet Risks and Ways to Control Them2

GREATEST Concerns When Reviewing Data Inputs from Spreadsheets3

 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

A data loss prevention (DLP) tool is a software application that detects and prevents data breaches by monitoring and protecting sensitive data from unauthorized access, transfer, or use1. A DLP tool can help your organization comply with regulations, prevent insider threats, and protect your intellectual property.

Before implementing a DLP tool, the most important prerequisite is to identify where existing data resides and establish a data classification matrix. This is because you need to know what data you have, where it is stored, how sensitive it is, and who can access it. A data classification matrix is a framework that defines the categories and levels of data sensitivity, such as public, internal, confidential, or restricted2. By identifying and classifying your data, you can determine the appropriate DLP policies and controls to apply to each type of data and prevent data loss or leakage.

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.

The greatest concern when reviewing an IT strategic plan is B. The plan does not support relevant organizational goals. This is because an IT strategic plan should align and integrate the IT goals and objectives with the organization’s overall strategy and vision, and ensure that IT supports and enables the business processes and functions1. If the IT strategic plan does not support relevant organizational goals, it may lead to:

Suboptimal or negative outcomes and value for the organization, as IT investments and initiatives may not align with the organization’s priorities, needs, or expectations1.

Conflicts or inconsistencies between IT and business functions, as IT may not deliver the expected level of service, quality, or performance2.

Wasted or inefficient use of resources, as IT may spend time, money, or effort on projects or activities that are not relevant or beneficial for the organization2.

Validation checks are a type of data quality control that helps to ensure the integrity of data for a system interface. Validation checks verify that the data entered or transferred between systems is correct, consistent, and conforms to predefined rules or standards. Validation checks can prevent or detect errors, anomalies, or inconsistencies in the data that may affect the system’s functionality, performance, or security.

Option C is correct because validation checks are a common and effective method of ensuring data integrity for a system interface. Validation checks can be performed at various stages of the data lifecycle, such as input, processing, output, or storage. Validation checks can also be applied to different types of data, such as data types, codes, ranges, formats, consistency, and uniqueness.

Option A is incorrect because system interface testing is a type of software testing that verifies the interaction between two separate systems or components of a system. System interface testing does not directly ensure the integrity of data for a system interface, but rather the functionality and reliability of the interface itself. System interface testing may use validation checks as part of its test cases, but it is not the same as validation checks.

Option B is incorrect because user acceptance testing (UAT) is a type of software testing that evaluates whether the system meets the user’s expectations and requirements. UAT does not directly ensure the integrity of data for a system interface, but rather the usability and acceptability of the system from the user’s perspective. UAT may use validation checks as part of its test scenarios, but it is not the same as validation checks.

Option D is incorrect because audit logs are records of events and activities that occur within a system or network. Audit logs do not directly ensure the integrity of data for a system interface, but rather provide evidence and accountability for the system’s operations and security. Audit logs may use validation checks as part of their analysis or reporting, but they are not the same as validation checks.

References:

CISA Online Review Course1, Module 5: Protection of Information Assets, Lesson 4: Data Quality Management, slide 5-6.

CISA Review Manual (Digital Version)2, Chapter 5: Protection of Information Assets, Section 5.3: Data Quality Management, p. 281-282.

CISA Review Manual (Print Version), Chapter 5: Protection of Information Assets, Section 5.3: Data Quality Management, p. 281-282.

CISA Questions, Answers & Explanations Database3, Question ID: QAE_CISA_722.

Data Validation - Overview, Types, Practical Examples4

Data Validity: The Best Practice for Your Business5

Validation - Data validation6

What is Data Validation? Types, Techniques, Tools7

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

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

The best course of action for an IS auditor who finds that some critical recommendations have not been implemented is to evaluate senior management’s acceptance of the risk. The IS auditor should understand the reasons why the recommendations have not been implemented and the implications for the organization’s risk exposure. The IS auditor should also verify that senior management has formally acknowledged and accepted the residual risk and has documented the rationale and justification for their decision. The IS auditor should communicate the findings and the risk acceptance to the audit committee and other relevant stakeholders. References:

CISA Review Manual (Digital Version)

CISA Questions, Answers & Explanations Database

The most important factor when planning a network audit is to identify the existing nodes on the network. Nodes are devices or systems that are connected to the network and can communicate with each other. Nodes can include servers, workstations, routers, switches, firewalls, printers, scanners, cameras, etc. Identifying the existing nodes on the network will help the auditor to determine the scope, objectives, and methodology of the audit. It will also help the auditor to assess the network topology, architecture, performance, security, and compliance. References:

CISA Review Manual (Digital Version)

CISA Questions, Answers & Explanations Database

This is because the business processes are the core activities and functions that enable the organization to achieve its objectives and create value for its stakeholders. The business processes are also the sources and drivers of various risks that may affect the organization’s performance, compliance, and reputation. Therefore, the IS auditor should focus on understanding, assessing, and prioritizing the business processes that are most critical, complex, or vulnerable to the organization’s success, and align the audit objectives, scope, and resources accordingly12.

Critical business applications (A) are not the most important area of focus for an IS auditor when developing a risk-based audit strategy, but rather a specific aspect of the business processes that may require attention. Critical business applications are the software systems that support the execution and automation of the business processes, such as enterprise resource planning (ERP), customer relationship management (CRM), or accounting systems. Critical business applications may pose significant risks to the organization if they are not reliable, secure, or efficient. Therefore, the IS auditor should consider the criticality, functionality, and dependency of the business applications when planning the audit, but not as the primary focus12.

Existing IT controls © are not the most important area of focus for an IS auditor when developing a risk-based audit strategy, but rather an outcome or output of the risk assessment process. Existing IT controls are the policies, procedures, practices, and technologies that are implemented to manage and mitigate the IT-related risks that may affect the organization’s business processes and objectives. Existing IT controls may vary in their design, effectiveness, and maturity. Therefore, the IS auditor should evaluate and testthe existing IT controls as part of the audit execution and reporting process, but not as the main focus12.

Recent audit results (D) are not the most important area of focus for an IS auditor when developing a risk-based audit strategy, but rather an input or source of information for the risk assessment process. Recent audit results are the findings, recommendations, and opinions of previous audits that may provide insights or feedback on the organization’s business processes, risks, and controls. Recent audit results may also indicate any changes or trends in the organization’s risk profile or environment. Therefore, the IS auditor should review and consider the recent audit results as part of the audit planning and scoping process, but not as the main focus12.

Segregation of duties (SoD) is a key internal control that aims to prevent fraud and errors by ensuring that no single individual can perform incompatible or conflicting tasks within a business process. SoD reduces the risk of unauthorized or improper transactions, manipulation of data, or misappropriation of assets.

In the accounts payable department, SoD involves separating the following functions: invoice processing, payment authorization, payment execution, and reconciliation. For example, the person who approves an invoice should not be the same person who issues the payment or reconciles the bank statement.

One of the best ways to ensure appropriate SoD within the accounts payable department is to restrict program functionality according to user security profiles. This means that each user of the accounts payable system should have a unique login and password, and should only have access to the functions that are relevant to their role and responsibilities. For instance, an invoice processor should not be able to approve payments or modify vendor records. This way, the system can enforce SoD and prevent unauthorized or fraudulent activities.

The other options are not as effective as restricting program functionality according to user security profiles. Restricting access to update programs to accounts payable staff only is a general access control measure, but it does not address the SoD issue within the accounts payable department. Including the creator’s user ID as a field in every transaction record created is a useful audit trail feature, but it does not prevent users from performing incompatible functions. Ensuring that audit trails exist for transactions is a detective control that can help identify and investigate any irregularities, but it does not prevent them from occurring in the first place.

 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 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

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

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

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

References:

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

Data Loss Prevention—Next Steps - ISACA1

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