Free Isaca CISA Practice Exam with Questions & Answers | Set: 6

Benford’s law analysis is a powerful technique for identifying irregularities or anomalies in numerical datasets, such as financial transactions. It detects deviations from expected frequency distributions, which may indicate fraud.

Control Self-Assessments (CSAs) (Option A):Useful for control evaluation but not for fraud detection.

Interviews with Control Owners (Option B):Provide insights but are not efficient for identifying fraudulent patterns.

Regression Analysis (Option C):Effective for predictive modeling but less so for detecting fraud in transactional data.

A compliance gap analysis is a detailed review of an organization’s current state of compliance against a specific regulation or standard. It helps identify the areas and controls that are not meeting the requirements, assess their risk levels, and determine the corrective actions that can be taken to achieve compliance12. A compliance gap analysis is the most useful tool for an IS auditor to review when auditing against a new regulation, as it provides a clear and comprehensive picture of the compliance status, gaps, and remediation plan of the organization.

References

1: Information Security Architecture: Gap Assessment and Prioritization - ISACA

2: How to perform Compliance Gap Analysis? - Sprinto

The primary purpose of creating a simulated production environment with multiple vulnerable applications is D. To attract attackers in order to study their behavior. This is also known as a honeypot, which is a decoy system that mimics a real target and lures attackers into revealing their techniques, tools, and motives1. A honeypot can help the organization’s security team to improve their defense strategies, identify new threats, and collect digital evidence of cyberattacks1.

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.

The risk that is most affected by this oversight is audit risk. Audit risk is the risk that the auditor may express an inappropriate opinion or conclusion based on the audit evidence obtained. Audit risk consists of inherent risk, control risk, and detection risk. Inherent risk is the risk that material errors or frauds exist in the audited area before considering the effectiveness of internal controls. Control risk is the risk that the internal controls fail to prevent or detect material errors or frauds. Detection risk is the risk that the auditor fails to identify material errors or frauds using the audit procedures performed. In this case, the auditor has overlooked evidence that could contradict a conclusion of the audit, which increases the detection risk and consequently the audit risk. References:

CISA Review Manual (DigitalVersion), Chapter 2, Section 2.31

CISA Online Review Course, Domain 1, Module 1, Lesson 32

The audit finding that should be of greatest concern is that tasks defined on the critical path do not have resources allocated, as this means that the project is likely to face significant delays and cost overruns, since the critical path is the sequence of activities that determines the minimum time required to complete the project. The actual start times of some activities being later than originally scheduled may indicate some minor deviations from the project plan, but they may not necessarily affect the overall project completion time if they are not on the critical path. The project manager lacking formal certification may affect the quality and efficiency of the project management process, but it does not necessarily imply that the project manager is incompetent or unqualified. Milestones have been defined for all project products, but they may not be realistic or achievable if they do not take into account the resource constraints and dependencies of the critical path tasks. References: CISA Review Manual (Digital Version), Chapter 2: Governance and Management of IT, Section 2.3: IT Project Management

The IS auditor’s most important course of action after finding that several similar incidents were logged during the audit period is to determine if a root cause analysis was conducted. A root cause analysis is a systematic process that identifies the underlying causes of system failures or incidents. A root cause analysis can help to prevent recurrence of similar incidents, improve system performance and reliability, and enhance incident management processes. The IS auditor should evaluate whether a root cause analysis was performed for each incident, whether it was timely and thorough, and whether it resulted in effective corrective actions.

The most helpful thing for an IS auditor to review when evaluating an organization’s business processes that are supported by applications and IT systems is the enterprise architecture (EA). EA is the practice of designing a business with a holistic view, considering all of its parts and how they interact. EA defines the overall goals, the strategies that support those goals, and the tactics that are needed to execute those strategies. EA also outlines the ways various components of IT projects interact with one another and with the business processes. By reviewing the EA, an IS auditor can gain a comprehensive understanding of how the organization aligns its IT efforts with its overall mission, business strategy, and priorities. An IS auditor can also assess the effectiveness, efficiency, agility, and continuity of complex business operations.

The other options are not as helpful as option B. A configuration management database (CMDB) is a database that stores and manages information about the components that make up an IT system. A CMDB tracks individual configuration items (CIs), such as hardware, software, or data assets, and their attributes, dependencies, and changes over time. A CMDB can help an IS auditor to monitor the performance, availability, and configuration of IT assets, but it does not provide a holistic view of how they support the business processes. IT portfolio management is the practice of managing IT investments, projects, and activities as a portfolio. IT portfolio management aims to optimize the value, risk, and cost of IT initiatives and align them with the business objectives. IT portfolio management can help an IS auditor to evaluate the return on IT investments and the alignment of IT projects with the business strategy, but it does not provide a detailed view of how they support the business processes. IT service management (ITSM) is the practice of planning, implementing, managing, and optimizing IT services to meet the needs of end users and customers. ITSM focuses on delivering IT as a service using standardized processes and best practices. ITSM can help an IS auditor to review the quality, efficiency, and effectiveness of IT service delivery and support, but it does not provide a comprehensive view of how they support the business processes. References: What is enterprise architecture (EA)? - RingCentral, What is a configuration management database (CMDB)? - Red Hat, IT Portfolio Management Strategies | Smartsheet, What is IT service management (ITSM)? | IBM

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

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

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

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

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

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

References:

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

Segregation of Duties in an Agile Environment | AKF Partners3

Separation of Duties: How to Conform in a DevOps World4

 A differential backup scheme is the best option when storage media is limited, as it only backs up the data that has changed since the last full backup. This reduces the amount of storage space required and also simplifies the restoration process, as only the last full backup and the last differential backup are needed. A real-time backup scheme would require continuous replication of data, which would consume a lot of storage space and network bandwidth. A virtual backup scheme would create a snapshot of the data at a point in time, but it would not reduce the storage space required, as it would still need to store the changes made to the data. A full backup scheme would back up all the data every time, which would require the most storage space and also take longer to complete. References: ISACA, CISA Review Manual, 27th Edition, 2018, page 405

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

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

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

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

References:

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

Incident Response Process - ISACA1

Incident Response: How to Identify and Fix Security Weaknesses

 The greatest risk of using a reciprocal site for disaster recovery is the inability to utilize the site when required. A reciprocal site is an agreement between two organizations to provide backup facilities for each other in case of a disaster. However, this arrangement may not be reliable or enforceable, especially if both organizations are affected by the same disaster or have conflicting priorities. Therefore,the IS auditor should recommend that management consider alternative options for disaster recovery, such as dedicated sites or cloud services12. References:

CISA Review Manual, 27th Edition,page 3381

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

The best way to ensure that potential security issues are considered by the development team as part of incremental changes to agile-developed software is to include a mandatory step to analyze the security impact when making changes. This will help to identify and mitigate any security risks or vulnerabilities that may arise from the changes, and to ensure that the software meets the security requirements and standards. The other options are not as effective, because they either delegate thesecurity analysis to someone outside the development team, rely on post-deployment testing, or focus on documentation rather than analysis. References: CISA Review Manual (Digital Version)1, Chapter 4, Section 4.2.5

The necessary condition for effective risk management in IT governance is that risk evaluation is embedded in management processes. Risk evaluation is the process of comparing the results of risk analysis with risk criteria to determine whether the risk and/or its magnitude is acceptable or tolerable. Risk evaluation should be integrated into the management processes of planning, implementing, monitoring, and reviewing the IT activities and resources. This will ensure that risk management is aligned with the business objectives, strategies, and values, and that risk responses are timely, appropriate, and effective. References:

CISA Review Manual (Digital Version)

CISA Questions, Answers & ExplanationsDatabase

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

CISAReview Manual (Digital Version)

CISA Questions, Answers & Explanations Database

The primary objective of value delivery in reference to IT governance is to optimize investments. Value delivery is one of the five focus areas of IT governance that aims to ensure that IT delivers expected benefits to stakeholders and enables business value creation. Value delivery involves aligning IT investments with business objectives and strategies, managing IT performance and benefits realization, optimizing IT costs and risks, and enhancing IT innovation and agility. Value delivery helps to maximize the return on investment (ROI) and value for money (VFM) of IT resources and capabilities. References:

CISA Review Manual (Digital Version)

CISA Questions, Answers & Explanations Database

Integration testing is the best way to ensure that an application is performing according to its specifications, because it tests the interaction and compatibility of different modules or components of the application. Unit testing, pilot testing and system testing are also important, but they do not coverthe whole functionality and integration of the application as well as integration testing does. References: CISA Review Manual (Digital Version)1, Chapter 4, Section 4.2.3

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

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

CISA Review Manual (Digital Version)

CISA Questions, Answers & Explanations Database

The IS auditor should notify audit management of the finding first, as this is a significant issue that may affect the audit scope and objectives. The IS auditor should not notify law enforcement or require the third party to notify customers without consulting audit management first. The audit report with a significant finding should be issued after the audit is completed and the findings are validated. References: ISACA, CISA Review Manual, 27th Edition, 2018, page 247

The most important consideration for an IS auditor when assessing the adequacy of an organization’s information security policy is the business objectives. An information security policy is a document that defines the organization’s approach to protecting its information assets from internal and external threats. It should align with the organization’s mission, vision, values, and goals, and support its business processes and functions1. An informationsecurity policy should also be focused on the business needs and requirements of the organization, rather than on technical details orspecific solutions2.

The other options are not as important as the business objectives, because they do not directly reflect the organization’s purpose and direction. IT steering committee minutes are records of the discussions and decisions made by a group of senior executives who oversee the IT strategy and governance of the organization. They may provide some insights into the information security policy, but they are not sufficientto evaluate its adequacy3. Alignment with the IT tactical plan is a measure of how well the information security policy supports the short-term actions and projects that implement the IT strategy. However, the IT tactical plan itself shouldbe aligned with the business objectives, and not vice versa4. Compliance with industry best practice is a desirable quality of an information security policy, but it is not a guarantee of its effectiveness or suitability for the organization. Industry best practices are general guidelines or recommendations that may not apply to every organization or situation. An information security policy should be customized and tailored to the specific context and needs of the organization. References:

The 12 Elements of an Information Security Policy | Exabeam1

11 Key Elements of an Information Security Policy | Egnyte2

What is an IT steering committee? Definition, roles & responsibilities …3

What is IT Strategy? Definition, Components & Best Practices | BMC …4

IT Security Policy: Key Components & Best Practices for Every Business 

The best way to reduce the immediate risk associated with using an unsupported version of the software is to segregate the outdated software system from the main network. An unsupported software system may have unpatched vulnerabilities that could be exploited by attackers to compromise the system or access sensitive data. By isolating the system from the rest of the network, the organization can limit the exposure and impact of a potential breach. Verifying all patches have been applied to the outdated software system, closing all unused ports on the outdated software system and monitoring network traffic attempting to reach the outdated software system are also good practices, but they do not address the root cause of the risk, which is the lack of vendor support and updates. References:

CISA Review Manual, 27th Edition, page 2951

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

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

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

References:

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

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

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

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

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

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

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

 The best way to ensure that a proper cutoff has been established to reinstate transactions and records to their condition just prior to a computer system failure is to use a database management system (DBMS) to dynamically back-out partially processed transactions. A DBMS is a software system that manages the creation, manipulation, retrieval, and security of data stored in a database. A DBMS can provide features such as transaction management, concurrency control, recovery management, and integrity management. A DBMS can dynamically back-out partially processed transactions by using mechanisms such as rollback segments, undo logs, or write-ahead logs. These mechanisms allow the DBMS to restore the database to a consistent state before the failure occurred. References:

CISA Review Manual (Digital Version)

CISA Questions, Answers &Explanations Database

The most significant risk that IS auditors are required to consider for each engagement is the misalignment with business objectives. This is because IS audit engagements are intended to provide assurance that the IT systems and processes support the achievement of the business objectives and strategies. If there is a misalignment,it could result in wasted resources, missed opportunities, inefficiencies, errors, or failures that could adversely affect the organization’s performance and reputation12. References: 1: CISA Review Manual (Digital Version), Chapter 1: The Process of Auditing Information Systems, Section 1.3: Audit Risk, page 28 2: CISA Online Review Course, Module 1: The Process of Auditing Information Systems, Lesson 1.3: Audit Risk

 An IS auditor reviewing the threat assessment for a data center would be most concerned if the exercise was completed by local management, because this could introduce bias, conflict of interest, or lack of expertise in the assessment process. A threat assessment is a systematic method of identifying and evaluating the potential threats that could affect the availability, integrity, or confidentiality of the data center and its assets. A threat assessmentshould be conducted by an independent and qualified team that has the necessary skills, knowledge, and experience to perform a comprehensive and objective analysis of the data center’s environment, vulnerabilities, and risks1.

The other options are not as concerning as option C for an IS auditor reviewing the threat assessment for a data center. Option A, some of the identified threats are unlikely to occur, is not a problem as long as the likelihood and impact of each threat are properly estimated and prioritized. A threat assessment should consider all possible scenarios, even if they have a low probability of occurrence, to ensure that the data center is prepared for any eventuality2. Option B, all identified threats relate to external entities, is not a flaw as long as the assessment also considers internal threats, such as human errors, malicious insiders, or equipment failures. External threats are often more visible and severe than internal threats, butthey are not the only source of risk for a data center3. Option D, neighboring organizations’ operations have been included, is not a mistake as long as the assessment also focuses on the data center’s own operations. Neighboring organizations’ operations may have an impact on the data center’s security and availability, especially if they share physical or network infrastructure or resources. A threat assessmentshould take into account the interdependencies and interactions between the data center and its external environment4.

References:

ISACA, CISA Review Manual, 27th Edition, 2019

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

Data Center Threats and Vulnerabilities1

Datacenter threat, vulnerability, and risk assessment2

Data Centre Risk Assessment3

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

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

A web-based CRM system that is directly accessed by customers via the Internet should be hosted in a secure and isolated environment to protect it from external threats and unauthorized access. A web-based CRM system should also be reliable, trusted, and backedup regularly1.

Hosting the system on an external third-party service provider’s servers (A) or a hybrid-cloud platform managed by a service provider (B) may not be a concern for the auditor if the service provider has adequate security measures and service level agreements in place. The auditor should verify the security controls and contractual terms of the service provider before trusting them with the CRM data23.

Hosting the system within a demilitarized zone (DMZ) of a corporate network © is a common practice to provide an extra layer of security to the CRM system from untrusted networks, such as the Internet. A DMZ is a perimeter network that isolates the CRM system from the internal network and filters the incoming traffic from the external network using a security gateway4567.

Hosting the system within an internal segment of a corporate network (D) is a concern for the auditor because it exposes the CRM system and the internal network to potential attacks from the Internet. The CRM system should not be directly accessible from the Internet without a DMZ or a firewall to protect it. This could compromise the confidentiality, integrity, and availability of the CRM data and the internal network78.

The best recommendation to prevent unauthorized access to a highly sensitive data center by piggybacking or tailgating is to use an airlock entrance. An airlock entrance is a type of access control system that consists of two doors that are interlocked, so that only one door can be opened at a time. This prevents an unauthorized person from following an authorized person into the data center without being detected. An airlock entrance can also be integrated with other security measures, such as biometrics, card readers, or PIN pads, to verify the identity and authorization of each person entering the data center.

Biometrics (option A) is a method of verifying the identity of a person based on their physical or behavioral characteristics, such as fingerprints, iris scans, or voice recognition. Biometrics can provide a high level of security, but they are not sufficient to prevent piggybacking or tailgating, as an unauthorized person can still follow an authorized person who has been authenticated by the biometric system.

Procedures for escorting visitors (option B) is a policy that requires all visitors to the data center to be accompanied by an authorized employee at all times. This can help prevent unauthorized access by visitors, but it does not address the risk of piggybacking or tailgating by other employees or contractors who may have legitimate access to the building but not to the data center.

Intruder alarms (option D) are devices that detect and alert when an unauthorized person enters a restricted area. Intruder alarms can provide a deterrent and a response mechanism for unauthorizedaccess, but they are not effective in preventing piggybacking or tailgating, as they rely on the detection of the intruder after they have already entered the data center.

References: 1: CISA Certification | Certified Information Systems Auditor | ISACA 2: CISA Certified Information Systems Auditor Study Guide, 4th Edition 3: CISA - Certified Information Systems Auditor Study Guide [Book]

A firewall between internal network segments improves security and reduces risk by inspecting all traffic flowing between network segments and applying security policies. This will prevent unauthorized or malicious access, data leakage, or network attacks from compromising the network resources or data. Logging all packets passing through network segments may provide audit trails and evidence, but not prevent or mitigate security incidents. Monitoring and reporting on sessions between network participants may help to identify anomalous or suspicious activities, but not block or filter them. Ensuring all connecting systems have appropriate security controls enabled may enhance the overall network security posture, but not isolate or segregate different network segments. References: Info Technology & Systems Resources | COBIT, Risk, Governance … - ISACA, section “Book COBIT 2019 Design Guide: Designing an Information and Technology Governance Solution | Digital | English”

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

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

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

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

Therefore, option B is the correct answer.

References:

Whatis backup and disaster recovery? | IBM

Backup and Recovery of Data: The Essential Guide | Veritas

Database Backup and Recovery Best Practices - ISACA

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

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

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

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

References:

Follow-up Audits - Canadian Audit and Accountability Foundation 1

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

Internal Audit Follow Ups: Are They Really Worth The Effort

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

The answer B is correct because the most important thing for an IS auditor to review when determining whether IT investments are providing value to the business is the business strategy. The business strategy is the plan or direction that guides the organization’s decisions and actions to achieve its goals and objectives. The business strategy defines the organization’s vision, mission, values, competitive advantage, target market, value proposition, and key performance indicators (KPIs).

IT investments are the expenditures or costs incurred by the organization to acquire, develop, maintain, or improve its IT assets, such as hardware, software, network, data, or services. IT investments can help the organization to support its business processes, operations, functions, and capabilities. IT investments can also help the organization to create or enhance its products, services, or solutions for its customers or stakeholders.

To determine whether IT investments are providing value to the business, an IS auditor needs to review how well the IT investments align with and contribute to the business strategy. Alignment means that the IT investments are consistent and compatible with the business strategy, and that they support and enable the achievement of the strategic goals and objectives. Contribution meansthat the IT investments are effective and efficient in delivering the expected outcomes and benefits for the business, and that they generate a positive return on investment (ROI) or value for money.

An IS auditor can use various methods or frameworks to review the alignment and contribution of IT investments to the business strategy, such as:

Balanced scorecard: A balanced scorecard is a tool that measures and monitors the performance of an organization across four perspectives: financial, customer, internal process, and learning and growth. A balanced scorecard can help an IS auditor to evaluate how well the ITinvestments support and improve each perspective of the organization’s performance, and how they link to the organization’s vision and strategy.

Value chain analysis: A value chain analysis is a tool that identifies and analyzes the primary and support activities that add value to an organization’s products or services. A value chain analysis can help an IS auditor to assess how well the IT investments enhance or optimize each activity of the value chain, and how they create or sustain a competitive advantage for the organization.

Business case analysis: A business case analysis is a tool that evaluates the feasibility, viability, and desirability of a proposed project or initiative. A business case analysis can help an IS auditor to examine how well the IT investments address a business problem or opportunity, how they deliver the expected benefits and outcomes for the stakeholders, and how they compare with alternative options or solutions.

The other options are not as important as option B. Return on investment (ROI) (option A) is a metric that measures the profitability or efficiency of an investment by comparing its benefits or returns with its costs or expenses. ROI can help an IS auditor to quantify the value of IT investments for the business, but it does not capture all aspects of value, such as quality, satisfaction, or impact. ROI also depends on how well the IT investments align with the business strategy in the first place. Business cases (option C) are documents that justify and support a proposed project or initiative by describing its objectives, scope, benefits, costs, risks, and alternatives. Business cases can help an IS auditor to understand the rationale and expectations for IT investments, but they do not guarantee that the IT investments will actually deliver the desired value for the business. Business cases also need to be aligned with the business strategy to ensure their relevance and validity. Total cost of ownership (TCO) (option D) is a metric that measures the total costs incurred by an organization to acquire, operate, maintain, and dispose of an IT asset over its life cycle. TCO can help an IS auditor to estimate the financial impact of IT investments for the business, but it does not reflect the benefits or outcomes of IT investments, nor does it indicate how well the IT investments support or enable the business strategy.

References:

IT Strategy: Aligning IT & Business Strategy

How To Measure The Value Of Your Technology Investments

IT Investment Management: A Framework for Assessing … - GAO

How To Align Your Technology Investments With Your Business Strategy

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

 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

Among the options provided, fingerprint scanning has the highest rate of false negatives. False negatives occur when a biometric system fails to recognize an authentic individual. Factors such as skin conditions (wet, dry, greasy), finger injuries, and inadequate scanning can contribute to false negatives in fingerprint scanning1. In comparison, iris recognition23, face recognition45, and retina scanning67 generally have lower rates of false negatives.

References:

How Accurate are today’s Fingerprint Scanners? - Bayometric

25 Advantages and Disadvantages of Iris Recognition - Biometric Today

Iris Recognition Technology (or, Musings While Going through Airport …

The Critics Were Wrong: NIST Data Shows the Best Facial Recognition Algorithms Are Neither Racist Nor Sexist | ITIF

NIST Launches Studies into Masks’ Effect on Face Recognition Software

Retinal scan - Wikipedia

How accurate are retinal security scans - Smart Eye Technology