Isaca CISA - Certified Information Systems Auditor

The best reason to implement a data retention policy is to limit the liability associated with storing and protecting information. A data retention policy is a document that defines how long data should be kept by an organization and how they should be disposed of when they are no longer needed. A data retention policy should comply with the applicable laws and regulations that govern the data retention requirements and obligations of organizations, such as tax laws, privacy laws, or industry standards4. Implementing a data retention policy can help to limit the liability associated with storing and protecting information by reducing the amount of data that need to be stored and secured, minimizing the risk of data breaches or leaks, ensuringcompliance with legal or contractual obligations, and avoiding potential fines or penalties for non-compliance5. The other options are less relevant or incorrect because:

B. Documenting business objectives for processing data within the organization is not a reason to implement a data retention policy, as it is more related to data governance than data retention. Data governance refers to the policies, procedures, and controls that define how data are collected, used, managed, and shared within an organization. Data governance helps to ensure that data are aligned with business objectives and support decision making6.

C. Assigning responsibility and ownership for data protection outside IT is not a reason to implement a data retention policy, as it is more related to data accountability than data retention. Data accountability refers to the identification and assignment of roles and responsibilities for data protection among different stakeholders within an organization. Data accountability helps to ensure that data are handled appropriately and securely by authorized parties7.

D. Establishing a recovery point objective (RPO) for disaster recovery procedures is not a reason to implement a data retention policy, as it is more related to data backup than data retention. Data backup refers to the process of creating copies of data that can be restored in case of data loss or corruption. Data backup helps to ensure that data are available and recoverable in case of disaster8. RPO is a measure of the maximum amount of data that canbe lost or acceptable in case of disaster9. References: Data Retention Policy - ISACA, DataRetention - ISACA, Data Governance - ISACA, Data Accountability - ISACA, Data Backup - ISACA, Recovery Point Objective - ISACA

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

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

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

References:

Cloud Messaging and Collaboration Services - Maryland.gov DoIT4

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

Symphony to lead financial market communicationswith the acquisition of Cloud9 Technologies3

Cloud messaging and collaboration | Sumo Logic

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

Asset life cycle management is a technique of asset management where facility managers maximize the usable life of assets throughplanning, purchasing, using, maintaining, and disposing of assets1. The mainaim of assetlife cycle management is to reduce costs and increase productivity by optimizing the performance, reliability, and lifespan of assets2. Asset life cycle management can help prevent the situation of having unused applications by ensuring that the applications are aligned with the business needs, objectives, and strategies, and that they are regularly reviewed, updated, or retired as necessary3.

The other options are not as effective as asset life cycle management for preventing unused applications. A formal request for proposal (RFP) process is a method of soliciting bids from potential vendors or suppliers for a project or service. A RFP process can help select the best application for a specific requirement, but it does not ensure that the application will be used or maintained throughout its lifecycle. Business case development procedures are a set of steps that involve defining the problem, analyzing the alternatives, and proposing a solution for a project or initiative. Business case development procedures can help justify the need and value of an application, but they do not guarantee that the application will be utilized or supported after its implementation. An information asset acquisition policy is a document that outlines the rules and standards for acquiring information assets such as applications. An information asset acquisition policy can help ensure that the applications are acquired in a consistent and compliant manner, but it does not address how the applications will be managed or disposed of after their acquisition.

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

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

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

References:

ISACA, CISA Review Manual, 27th Edition, 2019

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

Risk-Based Audit Planning: A Guide for Internal Audit1

Risk-Based Audit Approach: Definition & Example

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

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

 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 mitigating factor that would most significantly minimize the impact of not renewing IT risk acceptances in a timely manner is having documented compensating controls over the business processes. Compensating controls are alternative controls that reduce or eliminate the risk when the primary control is not feasible or cost-effective. The other factors, such as previous approval by senior management, unchanged business environment, and small percentage of issues, do not mitigate the risk as effectively as compensating controls. References: ISACA CISA Review Manual 27th Edition Chapter 1

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

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

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

What is Data Modeling? Definition & Types | Informatica1

Data Modeling Best Practices: Documentation | erwin2

Data Model Documentation - an overview |ScienceDirect Topics3

Outsourcing App Development Pros and Cons – Droids On Roids4

8 Risks of Software Development Outsourcing & Their Solutions - Acropolium5

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

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

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

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

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

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

References:

Top 5 Risks With Cloud Software and How to Mitigate Them4

Mitigate risksand secure your cloud-native applications3

12 Risks, Threats & Vulnerabilities in Moving to the Cloud2

Best Practices to Manage Risks in the Cloud1

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 …

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

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

CISA Review Manual (Digital Version)

CISA Questions, Answers & Explanations Database

 The auditor’s primary concern when capacity management for a key system is being performed by IT with no input from the business would be an unanticipated increase in business’s capacity needs. This could result in performance degradation, service disruption or customer dissatisfaction if IT is not able to provide sufficient capacity to meet the business demand. Failure to maximize the use of equipment, cost of excessive data center storage capacity or impact to future business project funding are secondary concerns that relate to resource optimization or budget allocation, but not to service delivery or customer satisfaction. References: ISACA, CISA Review Manual, 27th Edition, 2018, page 374

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

CISA Review Manual (Digital Version)

CISA Questions, Answers & Explanations Database

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

CISA Review Manual, 27th Edition, page 4021

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

The best recommendation by the IS auditor for finding that application servers had inconsistent security settings leading to potential vulnerabilities is to perform a configuration review. A configuration review is an audit procedure that involves examining and verifying the security settings and parameters of application servers against predefined standards or best practices. A configuration review can help to identify and remediate any deviations, inconsistencies, or misconfigurations thatmay expose the application servers to unauthorized access, exploitation, or compromise6. A configuration review can also help to ensure compliance with security policies and regulations, as well as enhance the performance and availability of application servers. The other options are less effective or incorrect because:

A. Improving the change management process is not the best recommendation by the IS auditor for finding that application servers had inconsistent security settings leading to potential vulnerabilities, as it does not address the root cause of the problem or provide a specific solution. While improving the change management process may help to prevent future inconsistencies or misconfigurations in application server settings, it does not ensure that the existing ones are detected and corrected.

B. Establishing security metrics is not the best recommendation by the IS auditor for finding that application servers had inconsistent security settings leading to potential vulnerabilities, as it does not address the root cause of the problem or provide a specific solution. While establishing security metrics may help to measure and monitor the security performance andposture of application servers, it does not ensure that the existing inconsistencies or misconfigurations in application server settings are detected and corrected.

C. Performing a penetration test is not the best recommendation by the IS auditor for finding that application servers had inconsistent security settings leading to potential vulnerabilities, as it does not address the root cause of the problem or provide a specific solution. While performing a penetration test may help to simulate and evaluate the impact of an attack on application servers, it does not ensure that the existing inconsistencies or misconfigurations in application server settings are detected and corrected. References: Configuring system to useapplication server security - IBM, Application Security Risk: Assessment and Modeling - ISACA, Five Key Components of an Application SecurityProgram - ISACA, ISACA Practitioner Guidelines for Auditors - SSH, SCADA Cybersecurity Framework - ISACA

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

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

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

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

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

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

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

References:

Mobile Device Security Awareness Topics3

Security Awareness Top Ten Topics - #8 Mobile Devices