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Question 101
An IS auditor is reviewing an organization’s disaster recovery plan (DRP). Which of the following should be the auditor’s PRIMARY concern?
A) The DRP has not been updated in three years
B) The recovery time objectives (RTOs) have not been approved by senior management
C) The DRP has never been tested
D) Backup media are stored at an offsite location that is 15 miles away
Answer: C
Explanation:
A disaster recovery plan is a critical component of business continuity that ensures an organization can resume operations following a disruptive event. While all aspects of DRP require attention, certain deficiencies present more significant risks than others. The primary concern for an IS auditor should be that the DRP has never been tested, as this represents the most critical gap in disaster recovery preparedness. An untested DRP is essentially theoretical and may contain numerous undiscovered flaws, dependencies, or inaccuracies that would only surface during an actual disaster when it’s too late to correct them. Testing validates that procedures work as intended, recovery objectives are achievable, personnel understand their roles, required resources are available, and assumptions about systems and recovery capabilities are accurate. Without testing, organizations have false confidence in their ability to recover, potentially leading to catastrophic business impact during actual disasters. Regular testing identifies gaps in procedures, validates backup integrity, confirms communication plans function properly, and provides training for recovery teams. The absence of testing means recovery capabilities are completely unproven regardless of how well-documented the plan appears. Testing should occur at multiple levels including tabletop exercises validating procedures conceptually, technical recovery tests confirming systems can be restored, and full simulations exercising complete recovery processes. Option A while concerning is less critical than never testing because a three-year-old plan may still be largely valid and could be updated, whereas an untested plan of any age provides no assurance of recoverability. Option B regarding RTO approval is an important governance issue but doesn’t fundamentally prevent recovery if the technical capabilities exist; management can approve objectives retroactively. Option D concerning offsite storage location at 15 miles may or may not be adequate depending on the disaster scenarios being protected against, but is less critical than having no validation that recovery procedures work at all.
Question 102
Which of the following is the MOST important consideration when conducting a risk assessment?
A) Using standardized risk assessment methodologies
B) Ensuring risk assessment results align with business objectives
C) Quantifying all identified risks in monetary terms
D) Completing the assessment within the allocated timeframe
Answer: B
Explanation:
Risk assessment is a fundamental process that identifies and evaluates threats to organizational objectives, enabling informed decision-making about risk treatment. The effectiveness of risk assessment depends on its alignment with business priorities and decision-making needs. Ensuring risk assessment results align with business objectives is the most important consideration because risk assessment exists to support business decision-making and resource allocation. Risk assessment should identify risks that could impact achievement of strategic goals, operational efficiency, financial performance, compliance obligations, and reputation. The assessment scope, methodology, and reporting must resonate with stakeholders who will use results to make decisions about accepting, mitigating, transferring, or avoiding risks. Business alignment ensures that risk assessment focuses on risks that matter to the organization rather than creating academic exercises cataloging theoretical risks with minimal business relevance. Assessment results should enable management to prioritize security investments based on potential business impact, allocate resources to areas of greatest risk exposure, make informed decisions about risk acceptance, and understand how security initiatives support business objectives. Without business alignment, risk assessments may identify technically interesting risks that don’t affect critical business processes, use risk metrics that don’t resonate with decision-makers, recommend controls that don’t align with organizational risk tolerance, or fail to address risks to priority business initiatives. The assessment should use language and metrics meaningful to business stakeholders, consider organizational context including industry, regulatory environment, and competitive landscape, and directly support business planning and decision-making processes. Option A regarding standardized methodologies is helpful for consistency and completeness but using a standard methodology that doesn’t align with business needs produces poor results; methodology should serve business alignment. Option C about quantifying risks monetarily can be valuable but isn’t always feasible or necessary; qualitative assessments aligned with business priorities are often more useful than forced quantification. Option D concerning timeframes is a project management consideration but rushing assessment to meet deadlines while sacrificing business alignment produces results with limited value.
Question 103
An IS auditor discovers that software developers have administrative access to the production environment. What should be the auditor’s GREATEST concern?
A) Lack of documentation for access rights
B) Increased risk of unauthorized changes to production systems
C) Violation of least privilege principle
D) Difficulty in tracking user activities
Answer: B
Explanation:
Separation of duties and access controls are fundamental security principles that prevent unauthorized activities and reduce fraud risk. Developer access to production environments represents a significant control weakness with multiple implications. The greatest concern is increased risk of unauthorized changes to production systems because developers with administrative access can modify production code, data, or configurations without going through proper change management processes. This access enables bypassing of testing, approval, and review controls that ensure changes are appropriate, function correctly, and don’t introduce vulnerabilities or disruptions. Developers could intentionally or accidentally make undocumented changes causing system instability, introduce backdoors or malicious code for fraud or data theft, modify application logic for personal benefit, access or modify sensitive production data inappropriately, or deploy untested code that causes outages or security vulnerabilities. The combination of technical knowledge and privileged access creates opportunity for complex fraud schemes that are difficult to detect. Emergency situations might seem to justify developer production access, but alternative controls like emergency change procedures with multiple approvals, break-glass access with extensive logging and review, or on-call operations staff with appropriate access provide better risk management. Production changes should flow through formal processes including development in non-production environments, testing and quality assurance, change approval based on business justification and risk assessment, and deployment by operations teams with appropriate access. This segregation ensures changes receive appropriate oversight and review. Option A regarding documentation is concerning but secondary to the fundamental risk of unauthorized changes; even well-documented inappropriate access remains a serious control weakness. Option C about least privilege violation is accurate but describes the control failure rather than the primary business risk consequence. Option D concerning tracking difficulties is a monitoring challenge but the primary risk is unauthorized changes occurring rather than inability to track them afterward.
Question 104
Which of the following is the BEST evidence that an organization’s security awareness program is effective?
A) High attendance rates at security training sessions
B) Positive feedback scores on training evaluations
C) Reduction in security incidents caused by user actions
D) Completion of all planned training modules
Answer: C
Explanation:
Security awareness programs aim to modify user behavior to reduce security risks created by human actions. Measuring program effectiveness requires evaluating actual behavior change rather than participation metrics. A reduction in security incidents caused by user actions is the best evidence of program effectiveness because it demonstrates that training has actually changed user behavior in ways that reduce risk. Security awareness programs ultimately exist to prevent incidents such as successful phishing attacks, malware infections from unsafe browsing, unauthorized data disclosure, policy violations, and social engineering successes. Declining incident rates directly indicate that users are applying security knowledge in their daily activities, recognizing and avoiding threats, following security policies and procedures, and making security-conscious decisions. Incident metrics should be analyzed carefully to distinguish between changes in user behavior versus changes in threat landscape or detection capabilities. Effective measurement might track metrics including percentage of phishing simulation emails that users click versus report, malware infection rates from user-initiated actions, policy violation frequency, security exception requests, and helpdesk calls about potential security concerns. Behavioral indicators provide more valuable assessment than knowledge tests because users might pass tests demonstrating awareness of concepts yet fail to apply that knowledge when faced with actual threats. Continuous measurement enables program refinement by identifying topics requiring additional emphasis, evaluating effectiveness of different training approaches, demonstrating program value to leadership, and justifying continued investment in security awareness. The program should include multiple reinforcement methods beyond one-time training including simulated phishing exercises, security tips and reminders, gamification elements, and recognition for security-conscious behavior. Option A regarding attendance rates measures participation not effectiveness; high attendance at ineffective training provides minimal value. Option B about feedback scores reflects user satisfaction but users might enjoy training that doesn’t change their behavior or dislike effective training that challenges them. Option D concerning module completion tracks training delivery but completion doesn’t guarantee comprehension, retention, or behavioral change.
Question 105
An IS auditor is reviewing database access controls. Which of the following findings represents the GREATEST risk?
A) Database administrators (DBAs) have update access to audit logs
B) Users are not required to change passwords every 90 days
C) Default database accounts have not been disabled
D) Database activity is not monitored in real-time
Answer: A
Explanation:
Database access controls protect sensitive information and ensure accountability for database activities. Certain control weaknesses create significantly greater risks than others. Database administrators having update access to audit logs represents the greatest risk because it enables DBAs to cover their tracks after performing unauthorized or malicious activities. Audit logs are critical detective controls that record database activities including data access, modifications, privilege changes, and administrative actions. These logs enable investigation of security incidents, detection of unauthorized activities, compliance demonstration, and accountability for user actions. When DBAs can modify audit logs, they can delete evidence of inappropriate data access or modification, remove records of privilege escalation or account manipulation, alter timestamps or user identifiers to misdirect investigations, or insert false entries to implicate others. This capability undermines the entire audit trail’s integrity and reliability, effectively eliminating accountability for privileged users who have extensive database access and technical knowledge to cause significant damage. DBAs legitimately require elevated privileges for database administration, making preventive controls challenging, which increases reliance on detective controls like audit logs. Allowing DBAs to modify these logs removes the primary detective control over their activities. Proper control design requires audit log protection through write-once or append-only configurations preventing modification, transmission to separate logging systems outside DBA control, and monitoring by security or audit teams independent of database administration. Some organizations implement dual control where two administrators must collaborate for sensitive operations, or database activity monitoring solutions that create independent audit trails. The combination of privileged access and ability to erase evidence creates significant fraud and security risks. Option B regarding password changes is a control weakness but 90-day rotation is increasingly questioned by security experts and less critical than audit log integrity. Option C about default accounts is concerning but these accounts are often well-known and might be monitored more carefully than audit log modification. Option D about real-time monitoring is valuable but historical logs remain useful even without real-time analysis; however, logs have no value if they can be altered.
Question 106
What is the PRIMARY benefit of implementing a centralized identity management system?
A) Reduced licensing costs for authentication software
B) Simplified user provisioning and deprovisioning across systems
C) Elimination of all password-related security risks
D) Decreased need for access reviews
Answer: B
Explanation:
Identity management systems control user access across an organization’s technology environment. Centralized approaches provide numerous advantages over distributed identity management. Simplified user provisioning and deprovisioning across systems is the primary benefit of centralized identity management because it ensures consistent, timely, and complete access control throughout the user lifecycle. Centralized identity management creates a single authoritative source for user identities and entitlements, enabling automated provisioning that grants appropriate access when users join or change roles, consistent application of access policies across all systems, rapid deprovisioning when users leave ensuring access is revoked from all systems simultaneously, and reduced administrative effort through workflow automation. Without centralization, access provisioning requires separate processes for each system, creating delays in productivity for new users, inconsistent access across systems, administrative overhead managing multiple processes, and high risk of orphaned accounts when users leave because deprovisioning might miss systems. Centralized identity management integrates with HR systems to trigger automatic provisioning and deprovisioning based on employment status changes. Role-based access control simplifies management by defining access based on job functions rather than individual user configurations. The system maintains comprehensive audit trails showing who granted access, when access was granted or revoked, and current access status across all integrated systems. Automated deprovisioning is particularly critical for security because delayed access revocation creates windows where terminated employees retain system access, potentially enabling malicious actions, data theft, or sabotage. Centralized systems reduce this risk by ensuring immediate access revocation across all systems when employment ends. Provisioning efficiency also improves user experience by enabling new employees to become productive quickly with appropriate access. Option A about licensing costs may or may not result from centralization depending on specific products and isn’t the primary driver for implementation. Option C is incorrect because centralized identity management doesn’t eliminate password risks entirely, though it may reduce them through single sign-on and improved password policies. Option D is incorrect because access reviews remain necessary even with centralized management to verify that access remains appropriate; centralization actually facilitates more effective reviews by providing comprehensive visibility.
Question 107
An IS auditor finds that an organization’s incident response plan does not include procedures for evidence preservation. What is the PRIMARY risk?
A) Inability to prosecute cybercriminals
B) Failure to meet regulatory reporting requirements
C) Compromised forensic investigation capabilities
D) Extended system recovery time
Answer: C
Explanation:
Incident response procedures guide an organization’s reaction to security events, and various components serve different purposes. Evidence preservation is particularly critical for specific aspects of incident response. Compromised forensic investigation capabilities represent the primary risk from lacking evidence preservation procedures because improper evidence handling makes thorough incident analysis impossible regardless of whether prosecution is pursued. Forensic investigations determine incident scope and impact, identify attack methods and vulnerabilities exploited, discover additional affected systems or compromised accounts, establish timeline of attacker activities, and provide lessons learned to prevent recurrence. These investigations require evidence that maintains integrity and chain of custody. Without proper preservation procedures, incident responders might inadvertently destroy evidence by rebooting systems erasing volatile memory contents, overwrite log files during response activities, modify file timestamps through investigation processes, or contaminate evidence making it forensically unsound. Even well-intentioned response actions can destroy critical evidence if responders lack training in preservation techniques. Organizations must balance business needs for rapid recovery with investigative needs for evidence preservation. Procedures should address volatile data capture from memory before systems are shut down, disk imaging for offline analysis, log preservation from systems and security tools, network traffic captures, and chain of custody documentation. Evidence preservation doesn’t require pursuing prosecution; even organizations that never prosecute need forensic capabilities to understand incidents fully and implement effective remediation. Investigations identify whether incidents result from external attacks, insider threats, or accidental actions, each requiring different responses. Understanding attack techniques helps identify other potential victims within the environment. Without evidence, organizations may remediate symptoms while root causes and additional compromises remain undiscovered, leading to recurrent incidents. Option A about prosecution is too narrow; while prosecution requires preserved evidence, many organizations never prosecute but still need investigation capabilities. Option B about regulatory reporting is important but many reporting requirements can be satisfied without detailed forensics. Option D about recovery time is not directly related to evidence preservation; in fact, evidence preservation might extend recovery time as procedures delay restoration to protect evidence.
Question 108
Which of the following BEST indicates that IT strategic planning is aligned with organizational goals?
A) IT strategic plan is approved by senior management
B) IT investments are prioritized based on business value
C) IT balanced scorecard shows positive performance trends
D) IT strategic plan includes specific technical initiatives
Answer: B
Explanation:
IT strategic planning must align with broader organizational strategy to ensure technology investments support business objectives. Various indicators suggest alignment but some demonstrate it more directly than others. IT investments being prioritized based on business value best indicates strategic alignment because it demonstrates that technology decisions directly consider and support organizational goals. Business value prioritization means IT initiatives are evaluated based on contribution to strategic objectives, revenue generation or cost reduction, competitive advantage, operational efficiency improvements, customer satisfaction enhancement, and risk reduction. This prioritization requires understanding business strategy, objectives, and success criteria, then aligning technology initiatives to support them. Investment decisions should trace directly to specific business objectives showing clear connections between technology spend and business outcomes. Portfolio management processes evaluate proposed initiatives against business cases, rank projects by strategic value rather than technical preference, balance resources across strategic priorities, and adjust plans as business priorities shift. This approach ensures limited IT resources focus on highest-impact activities. Without business value focus, IT planning might prioritize technically interesting projects, maintain legacy systems beyond their business utility, pursue technology for its own sake, or miss opportunities where technology could significantly impact business results. Regular reviews ensure ongoing alignment as business conditions change. Collaboration between IT and business leaders throughout planning ensures mutual understanding and realistic expectations. Option A about senior management approval is necessary but insufficient; management might approve plans without deep evaluation of strategic alignment. Option C about balanced scorecard performance suggests effective IT operations but doesn’t specifically indicate strategic alignment with business goals; IT could perform well on operational metrics while pursuing wrong strategic priorities. Option D about technical initiatives shows planning detail but technical specificity doesn’t demonstrate business alignment; in fact, plans heavy on technical detail sometimes reflect IT focus on technology rather than business outcomes.
Question 109
An IS auditor reviewing a software development project finds that user acceptance testing (UAT) and production deployment occurred simultaneously. What should be the auditor’s GREATEST concern?
A) UAT results may not be properly documented
B) Users may not have adequate time to test functionality
C) Production systems may be exposed to defects that UAT should identify
D) Project timeline documentation may be inaccurate
Answer: C
Explanation:
Software development lifecycle includes distinct phases with specific purposes, and proper sequencing ensures quality and reduces risk. Simultaneous UAT and production deployment represents a fundamental process breakdown. Production systems being exposed to defects that UAT should identify is the greatest concern because it defeats the primary purpose of user acceptance testing which is identifying issues before production deployment. UAT serves as the final validation that software meets business requirements, functions correctly in realistic scenarios, integrates properly with related systems, performs adequately under expected load, and is usable by actual users. Testing in production means defects that UAT would normally catch instead impact production users, potentially causing business disruption, data corruption, security vulnerabilities, compliance violations, or financial losses. Defects found in production are exponentially more expensive to fix than those found during testing due to emergency response requirements, potential data cleanup needs, user productivity losses, and reputation damage. Proper development methodology sequences phases including development and unit testing, system integration testing, user acceptance testing in non-production environment, production readiness review, and controlled production deployment only after successful UAT completion and formal approval. This sequence provides multiple quality gates where different defect types are caught before user impact. Simultaneous UAT and deployment suggests pressure to meet aggressive timelines, lack of adequate non-production testing environments, immature development processes, or management not understanding development risk. Organizations should resist pressure to skip or compress testing phases even when facing deadline pressures because costs of production issues typically far exceed delays from proper testing. Option A about documentation is concerning but secondary to the fundamental risk of defects impacting production users; documentation issues don’t directly harm users or business operations. Option B about testing time is related but inadequate testing time is problematic because of the resulting risk of missing defects, not because of the time constraint itself. Option D about timeline documentation is an administrative concern unrelated to the actual business risk of production defects.
Question 110
Which of the following is the MOST important control to prevent unauthorized access to a data center?
A) Security cameras monitoring entry points
B) Sign-in logs for all visitors
C) Multi-factor authentication for physical access
D) Security awareness training for data center staff
Answer: C
Explanation:
Data centers house critical IT infrastructure requiring robust physical security controls. Multiple control types address physical access but vary in preventive effectiveness. Multi-factor authentication for physical access is the most important control to prevent unauthorized access because it provides strong verification of identity before granting entry to sensitive areas. Multi-factor authentication requires individuals to present multiple independent credentials such as something they have like an access card or key fob, something they know like a PIN or password, and something they are like biometric fingerprint or iris scan. This layered approach significantly reduces risk of unauthorized access compared to single-factor authentication because compromising multiple independent factors is substantially more difficult than defeating a single control. Lost or stolen access cards alone cannot grant access without the second factor. Shared PINs are less effective if biometric verification is required. Tailgating is deterred by mantraps or turnstiles requiring each person to authenticate individually. Multi-factor systems provide reliable audit trails showing who accessed the facility and when, supporting investigations if incidents occur. Strong physical access controls are critical because data center access provides opportunities for data theft, system sabotage, physical device theft, insertion of rogue equipment, or destruction of infrastructure. Preventive controls that stop unauthorized access are more effective than detective controls that only identify breaches after they occur. Authentication systems should integrate with identity management to ensure prompt deprovisioning when personnel leave. Testing should verify that access is properly restricted and that authentication requirements cannot be easily bypassed. Option A about security cameras is an important detective control providing evidence after incidents occur but cameras don’t prevent access; intruders may accept risk of being recorded. Option B regarding sign-in logs provides audit trails but is easily defeated as unauthorized individuals may enter without signing in or use false information. Option D about security awareness training is valuable but relies on human behavior rather than technical controls, and no amount of training prevents a determined unauthorized individual from attempting access if technical controls are weak.
Question 111
An IS auditor is reviewing a cloud service provider agreement. Which of the following should be the PRIMARY concern?
A) Cloud provider uses subcontractors for some services
B) Data ownership rights are not clearly defined
C) Service level agreements specify 99 percent availability
D) Encryption standards are not explicitly specified
Answer: B
Explanation:
Cloud computing arrangements involve numerous legal and operational considerations that must be addressed in service agreements. While multiple provisions require attention, certain ambiguities create fundamental risks. Unclear data ownership rights represent the primary concern because ownership ambiguity creates legal uncertainty about fundamental rights to use, access, modify, and delete data. Data ownership provisions should explicitly state that the customer retains all ownership rights to their data, the cloud provider has only limited rights to process data as necessary to provide services, the customer can retrieve all data in usable format upon contract termination, the provider must delete all customer data upon request within specified timeframes, and the customer has rights to audit provider data handling practices. Without clear ownership provisions, disputes might arise about rights to data, particularly if the provider develops derived data or analytics. Ownership uncertainty becomes critical during contract termination, legal proceedings, bankruptcy or acquisition of provider, or regulatory investigations. Providers might claim rights to data or resist deletion, retention, or transfer demands. Data might be commingled with other customers’ data or provider systems in ways that complicate extraction. Ownership provisions should address not just original data but backups, logs, metadata, and any derived information. Jurisdictional issues complicate ownership as data may reside in multiple legal jurisdictions with different property and privacy laws. Agreements should specify governing law and dispute resolution procedures. For regulated data, ownership provisions must align with regulatory requirements about data control and protection. Some regulations require that organizations maintain specified control over sensitive data regardless of processing arrangements. Ambiguous ownership provisions create compliance risks, potential data loss, inability to meet e-discovery obligations, and leverage imbalances favoring providers in disputes. Option A about subcontractors is notable and should be addressed through flow-down provisions requiring subcontractors to meet same obligations as prime contractor, but subcontracting is common and manageable through contractual provisions. Option C about 99 percent availability provides approximately 3.65 days downtime annually which may or may not be acceptable depending on requirements, but this is a service level discussion not a fundamental legal ambiguity. Option D about encryption standards should be specified but can often be addressed through amendments or technical specifications; ownership ambiguity is more fundamental and harder to resolve after contract execution.
Question 112
Which of the following provides the BEST assurance that backup data can be restored?
A) Backup completion reports show successful completion
B) Backup schedules are documented and approved
C) Regular restore testing is performed
D) Backups are stored at an offsite location
Answer: C
Explanation:
Backup systems protect against data loss from various causes including hardware failure, software corruption, malicious actions, or disasters. While backup processes have multiple components, restore capability is the ultimate measure of effectiveness. Regular restore testing provides the best assurance that backup data can be restored because testing verifies that backup processes actually captured data correctly, backup media is not corrupted or degraded, restore procedures work as intended, restored data is complete and usable, restoration completes within required timeframes, and personnel can successfully execute restore procedures. Backups that cannot be restored provide false confidence while offering no actual protection. Restore testing should occur regularly on random selections or full datasets, include verification of data integrity and completeness, test restoration to different systems or locations to verify portability, measure restoration times to validate recovery time objectives, involve operations staff who would perform actual recovery, and document results and any issues discovered. Testing frequency should align with data criticality and change rates, with critical systems requiring more frequent validation. Different test types serve different purposes including file-level restores validating ability to recover individual files or records, application-level restores confirming entire application stacks can be rebuilt, and full disaster recovery tests verifying ability to restore complete environments at alternate sites. Testing identifies issues like backup configuration errors excluding critical files, compatibility problems between backup and restore platforms, inadequate documentation of restore procedures, unrealistic recovery time objectives, and personnel training gaps. Without testing, organizations discover backup failures only when they need to restore data during actual emergencies, the worst possible time to identify problems. Regular testing builds confidence and competence in recovery capabilities. Option A about completion reports provides evidence that backup jobs executed but doesn’t verify that captured data can be restored; backups might complete successfully while capturing corrupted data or using incompatible formats. Option B about documented schedules is necessary for consistent backup operations but schedule documentation doesn’t assure restore capability. Option D about offsite storage protects against site-level disasters but doesn’t verify that the stored backups contain restorable data; offsite media could be blank, corrupted, or incompatible.
Question 113
An IS auditor finds that employees use personal devices to access corporate email without security controls. What should be the auditor’s FIRST recommendation?
A) Implement mobile device management (MDM) solution
B) Prohibit all personal device usage immediately
C) Develop and implement a bring-your-own-device (BYOD) policy
D) Require multi-factor authentication for email access
Answer: C
Explanation:
Personal device usage for corporate purposes, commonly called BYOD, creates various security and privacy challenges requiring thoughtful management. Different control approaches balance security, privacy, usability, and employee satisfaction. Developing and implementing a BYOD policy should be the first recommendation because policy establishes the governance framework and sets expectations before implementing technical controls. A comprehensive BYOD policy addresses which devices are permitted, what corporate resources personal devices may access, security requirements devices must meet, acceptable use provisions, privacy expectations for both employee and employer, procedures for lost or stolen devices, device management requirements, and employee departure procedures. Policy development requires balancing security needs with employee privacy concerns and usability expectations. Organizations must determine risk tolerance for personal device usage and whether benefits like employee satisfaction and cost savings justify risks. The policy should result from collaborative discussion involving IT security, legal, HR, and business representatives ensuring various perspectives are considered and resulting policy is practical. Policy provides foundation for subsequent technical implementation through MDM systems, network access controls, or other tools that enforce policy provisions. Attempting technical implementation before policy creates risk of implementing inappropriate controls, employee resistance due to lack of buy-in, legal challenges regarding privacy or employee rights, and inconsistent approach across different device types or user groups. Policy also enables consistent communication to employees about expectations and responsibilities. Training helps employees understand both security requirements and privacy protections. Once policy is established, technical controls implement and enforce provisions while measuring compliance with policy requirements. Option A about MDM is an appropriate technical control but should implement requirements defined in policy; implementing MDM first might violate privacy expectations or create employee resistance if expectations weren’t established. Option B about immediate prohibition might be necessary if risk is severe but is typically impractical as employees may depend on personal device access and immediate prohibition disrupts productivity; policy provides framework for managed transition. Option D about multi-factor authentication is a valuable security control but addresses only one aspect of personal device risks; comprehensive policy addresses multiple dimensions including authentication, device security, data protection, and privacy.
Question 114
Which of the following is the MOST critical component of a business impact analysis (BIA)?
A) Identifying all IT assets and their values
B) Determining maximum tolerable downtime for critical processes
C) Calculating the cost of disaster recovery solutions
D) Documenting all potential threat scenarios
Answer: B
Explanation:
Business impact analysis identifies and evaluates effects of disruptions on business operations, forming the foundation for business continuity and disaster recovery planning. Different BIA components serve various purposes but some are more fundamental than others. Determining maximum tolerable downtime (MTD) for critical processes is the most critical BIA component because it establishes how long the organization can survive without each business function before experiencing unacceptable consequences. MTD drives all subsequent continuity and recovery planning decisions including recovery time objectives for supporting IT systems, recovery strategy selection based on required speeds, resource allocation prioritizing protection for time-sensitive processes, and investment justification for continuity solutions. Without understanding tolerable downtime, organizations cannot design appropriate recovery capabilities or prioritize limited resources effectively. MTD analysis examines each business process to determine when downtime begins causing severe consequences such as substantial financial losses, regulatory violations, contractual breaches, customer defection, or reputation damage. The analysis considers time-sensitive factors including customer transaction processing, production schedules, payroll processing, regulatory filing deadlines, and supply chain coordination. MTD varies significantly across processes with some functions tolerating days of downtime while others require recovery within hours or minutes. Time factors change based on when disruptions occur, with month-end processing, tax season, or peak business periods requiring faster recovery than slower periods. MTD understanding enables development of specific RTO requirements for IT systems supporting business processes. For example, if order processing cannot tolerate more than four hours downtime, supporting systems need RTOs faster than four hours. The BIA should document both MTD and resulting RTOs providing clear connection between business requirements and technical recovery objectives. This linkage helps justify recovery investments by quantifying potential losses from extended downtime. Option A about identifying IT assets is part of BIA but asset inventory alone doesn’t indicate criticality or recovery priorities; not all IT assets require fast recovery. Option C about calculating disaster recovery costs is financial analysis that follows BIA; understanding costs doesn’t indicate what capabilities are needed. Option D about threat scenarios is risk assessment activity that might occur alongside BIA but identifying threats doesn’t establish recovery requirements; organizations need recovery capabilities regardless of which specific threats materialize.
Question 115
An IS auditor discovers that a critical patch has not been applied to production servers for six months despite being available. What should be the auditor’s GREATEST concern?
A) Vulnerability to known exploits
B) Non-compliance with patching policy
C) Lack of change management documentation
D) Potential audit finding that management must remediate
Answer: A
Explanation:
Patch management maintains system security by addressing discovered vulnerabilities through vendor-provided updates. Failures in patch management create various risks that must be prioritized appropriately. Vulnerability to known exploits is the greatest concern because delayed patching leaves systems exposed to attacks using publicly documented vulnerabilities for which attackers have readily available exploit code. When security patches are released, vendors typically publish vulnerability details enabling attackers to develop exploits if they haven’t already. The window between patch availability and deployment represents elevated risk as attackers actively scan for unpatched systems to compromise. Six months represents extensive exposure where automated attack tools have likely incorporated the vulnerability into standard scanning and exploitation frameworks. Exploitation could result in unauthorized access enabling data theft, system compromise allowing malware installation, lateral movement providing attackers with foothold to reach other systems, or service disruption through denial-of-service or ransomware. The specific risk depends on vulnerability details including which services are affected, what access vulnerabilities provide, and whether exploitation requires special conditions. Critical patches typically address severe vulnerabilities with significant impact potential. Six-month delays suggest systematic problems in patch management such as inadequate testing processes, insufficient resources for patch deployment, lack of asset inventory showing where patches apply, or organizational complacency about security maintenance. The auditor should understand reasons for delay and recommend process improvements. Emergency patch procedures may be warranted for critical vulnerabilities even if normal processes are slow. Compensating controls like network segmentation, access restrictions, or intrusion detection may partially mitigate risk but are inferior to patching. Option B about policy non-compliance describes the control failure but the actual business risk is vulnerability exposure; policy compliance matters because following policy reduces risks like vulnerability exposure. Option C about change documentation is important for change management processes but the primary concern is security vulnerability not documentation. Option D about audit findings reflects administrative concern for the auditor rather than the business risk to the organization; auditors should focus on actual risks not audit reporting convenience.
Question 116
Which of the following is the BEST indicator of an effective information security governance program?
A) Security policies are reviewed annually
B) Security metrics are regularly reported to the board
C) Security incidents are trending downward
D) Security roles and responsibilities are clearly defined
Answer: B
Explanation:
Information security governance ensures that security strategy aligns with business objectives and that appropriate oversight exists for security programs. Various elements contribute to governance but some better indicate effective governance structures. Security metrics being regularly reported to the board is the best indicator of effective information security governance because it demonstrates board-level engagement with security issues, integration of security into enterprise governance, fact-based security decision-making, and accountability for security outcomes. Effective governance requires that boards understand security risks, oversee management’s risk treatment approaches, ensure appropriate resources are allocated to security, and hold management accountable for results. Regular reporting provides boards with visibility into security posture, emerging threats, incident trends, compliance status, program effectiveness, and resource utilization. Reporting enables informed oversight decisions about risk acceptance, security investments, and strategic direction. Metrics should be meaningful to board members focusing on business impact rather than technical details, including indicators like business impact of security incidents, regulatory compliance status, third-party security risk, security program coverage, and trend analysis. The regularity of reporting ensures security remains on board agenda rather than being discussed only during crises. Board engagement drives security integration throughout the organization by demonstrating executive commitment, facilitating resources for security initiatives, elevating security’s organizational status, and ensuring business and security strategies align. The reporting relationship between chief information security officer and board provides checks and balances ensuring security concerns reach appropriate governance levels regardless of operational pressures. Option A about annual policy reviews is important for policy maintenance but policy review alone doesn’t indicate effective governance; policies might be reviewed routinely without meaningful board oversight. Option C about incident trends is positive but could result from factors other than governance such as reduced threat activity, and governance effectiveness should be evaluated based on oversight structures not just outcomes. Option D about defined roles and responsibilities is necessary for program operation but role definition doesn’t specifically indicate board-level governance or oversight; roles could be well-defined in programs with poor governance.
Question 117
An IS auditor is reviewing access controls for a financial application. Which finding represents the HIGHEST risk?
A) User accounts are not automatically locked after 90 days of inactivity
B) Password complexity requirements allow eight-character passwords
C) Generic accounts are shared among multiple users
D) Access rights are reviewed annually instead of quarterly
Answer: C
Explanation:
Access controls protect systems and data through various mechanisms including authentication, authorization, and accountability. Different control weaknesses create varying levels of risk to organizational assets. Generic accounts shared among multiple users represent the highest risk because shared accounts eliminate individual accountability, making it impossible to trace actions to specific individuals. This accountability loss undermines audit trails, prevents effective investigation of security incidents or policy violations, eliminates personal responsibility discouraging conscientious behavior, and enables users to deny responsibility for their actions. Shared accounts create significant fraud risk because multiple people with account credentials make it difficult to identify perpetrators of unauthorized activities. Users might inappropriately share credentials with unauthorized individuals. Access cannot be promptly revoked when specific individuals leave or change roles because others continue using the account. Password security deteriorates as more people know credentials, increasing likelihood of compromise through social engineering, shoulder surfing, or weak password selection. Generic accounts often receive excessive privileges because they must accommodate various users’ needs. Investigation of suspicious activities becomes nearly impossible when multiple people could have performed actions. Regulatory compliance is jeopardized as many frameworks require individual accountability. Financial applications are particularly sensitive as they process monetary transactions and financial data where accountability is critical for detecting fraud and errors. Some generic accounts like service accounts may be operationally necessary but should use technical controls rather than shared passwords, such as certificate-based authentication, stored credentials with restricted access, and detailed logging. User-facing access should always use individual accounts. Option A about 90-day inactive account lockout is suboptimal as 30-60 days is better practice, but inactive accounts without other compromise indicators present lower immediate risk than active shared accounts. Option B about eight-character passwords is below current best practice recommendations of 12-15 characters but might be acceptable with other controls like multi-factor authentication; password length alone is less critical than account sharing. Option D about annual versus quarterly access reviews is a control frequency issue but reviews at either frequency can detect inappropriate access; lack of individual accountability from shared accounts cannot be remediated through reviews.
Question 118
Which of the following is MOST important when implementing a data classification scheme?
A) Using industry-standard classification levels
B) Aligning classification levels with business requirements and risk tolerance
C) Automating the classification process
D) Training all employees on classification procedures
Answer: B
Explanation:
Data classification organizes information based on sensitivity and criticality, enabling appropriate protection measures. Effective classification requires careful design of the classification framework itself. Aligning classification levels with business requirements and risk tolerance is most important because classification exists to support business decisions about data protection, not as an academic exercise. Classification schemes should reflect the organization’s actual data types, regulatory obligations, competitive sensitivities, and operational needs. The number and definition of classification levels should match organizational complexity where too many levels create confusion and compliance burden while too few fail to distinguish data requiring different protections. Classification criteria must be clear enough that data owners can consistently determine appropriate levels. Each classification level should have associated handling requirements for storage, transmission, access control, retention, and disposal that are practical and enforceable. Business alignment ensures classification drives meaningful security decisions about encryption requirements, access restrictions, backup and recovery priorities, and resource allocation. Risk tolerance influences classification granularity and control requirements, with risk-averse organizations implementing more restrictive classifications and controls. Industry sector affects classification as healthcare, financial services, and defense have different data sensitivities. Classification must account for regulatory requirements including privacy laws, financial regulations, and industry-specific mandates. The framework should accommodate organizational culture where highly hierarchical organizations might implement detailed classification while collaborative cultures need simpler schemes. Successful classification balances security rigor with operational practicality, as overly burdensome requirements encourage workarounds. Executive sponsorship ensures classification has organizational authority. Regular review maintains classification relevance as business evolves. Option A about industry standards provides useful reference points but may not fit specific organizational needs; blindly adopting standard frameworks without customization often produces impractical classification schemes. Option C about automation is valuable for scalability and consistency but automating inappropriate classification criteria doesn’t improve outcomes; proper framework design must precede automation. Option D about training is essential for implementation success but training users on poorly designed classification schemes doesn’t make those schemes effective; appropriate framework design must come first.
Question 119
An IS auditor reviewing system logs discovers numerous failed login attempts for the administrator account. What should be the auditor’s FIRST course of action?
A) Recommend disabling the administrator account immediately
B) Report the finding to management and suggest investigation
C) Change the administrator password
D) Document the finding in the audit report
Answer: B
Explanation:
Auditors discovering potential security incidents during audit work face decisions about appropriate immediate actions versus completing audit processes. The balance between urgency and proper protocols varies by situation severity. Reporting the finding to management and suggesting investigation is the first course of action because auditors should maintain independence and not directly intervene in operations except for imminent critical threats. Failed login attempts could indicate an active attack attempting to compromise administrative access through brute force or credential guessing, compromised credentials being tested, misconfigured systems or applications attempting automated connections, or former employees attempting unauthorized access. The pattern, frequency, source, and timing of attempts help determine severity. Management must investigate to determine whether attempts represent actual attacks requiring immediate response, the source of failed attempts, whether any attempts succeeded, if other accounts show similar patterns, and what remediation is appropriate. Auditors reporting discoveries to management enables operational staff to respond appropriately with their system knowledge and authority. Immediate notification is warranted because administrative account compromise poses severe risk, enabling attackers to control systems completely, access all data, create backdoors, disable security controls, and delete audit trails. Delayed reporting could allow attack success during the reporting delay. Auditors should specify urgency in communications so management prioritizes response appropriately. While maintaining independence, auditors can suggest investigative steps such as analyzing log details, checking for successful administrator logins, reviewing account lockout status, identifying attempt sources, and examining other logs for compromise indicators. Management might implement immediate defensive measures like temporary account lockout, IP address blocking, or enhanced monitoring. Option A about disabling accounts might be appropriate but requires operational judgment about business impact; management should make operational decisions. Option C about changing passwords is operational action auditors shouldn’t take directly; furthermore, password change before investigation might destroy evidence and wouldn’t address the issue if the account is already compromised. Option D about documenting in audit report is insufficient immediate response given the time-sensitive security risk; formal reporting should follow after immediate notification.
Question 120
Which of the following is the MOST important factor in determining the frequency of disaster recovery plan testing?
A) Regulatory requirements for testing frequency
B) Availability of staff to participate in tests
C) Rate of change in IT environment and business processes
D) Cost of conducting recovery tests
Answer: C
Explanation:
Disaster recovery plan testing validates recovery capabilities and maintains organizational readiness. Testing frequency decisions require balancing various factors to ensure plans remain effective. Rate of change in IT environment and business processes is the most important factor determining testing frequency because changes can invalidate recovery assumptions and procedures. Rapid change requires more frequent testing to maintain plan relevance. Changes that affect recovery include infrastructure modifications such as server additions, network changes, or cloud migrations, application updates changing dependencies or data formats, personnel turnover affecting knowledge of recovery procedures, business process changes altering criticality or recovery priorities, and vendor or service provider changes affecting recovery capabilities. Each change potentially impacts recovery procedures, resource requirements, or recovery time achievements. Organizations with stable environments might test annually while dynamic environments need quarterly or more frequent testing. Testing frequency should increase after significant changes even if regular schedule hasn’t arrived. Different test types can occur at different frequencies where full simulations occur less frequently due to cost and disruption while tabletop exercises and component tests occur more often. Testing validates that documented procedures remain accurate, new systems are included in recovery scope, recovery time objectives can still be met, team members understand their roles, and identified issues from previous tests are resolved. Without regular testing aligned with change rates, organizations develop false confidence in outdated plans that would fail during actual disasters. Change management should trigger plan updates and potentially drive additional testing. Configuration management databases help identify recovery-relevant changes. Risk assessment considers change rate when determining appropriate testing frequency. Option A about regulatory requirements establishes minimum testing frequencies but compliance-driven testing might be insufficient if change rates warrant more frequent validation; regulations set floors not optimal frequencies. Option B about staff availability is a practical constraint but shouldn’t drive frequency decisions; organizations must allocate resources for necessary testing regardless of availability challenges. Option D about testing costs is a factor in test design but shouldn’t primarily determine frequency; less expensive testing methods can enable appropriate frequency if full simulations are cost-prohibitive.
