The final decision to include a material finding in an audit report should be made by the:
Correct Answer: C
The IS auditor should make the final decision about what to include or exclude from the audit report. The other choices would limit the independence of the auditor.
Question 52
What would be an IS auditor's BEST course of action when an auditee is unable to close all audit recommendations by the time of the follow-up audit?
Correct Answer: D
The best course of action for an IS auditor when an auditee is unable to close all audit recommendations by the time of the follow-up audit is to evaluate the residual risk due to open issues. Residual risk is the risk that remains after the implementation of controls or mitigating actions. Evaluating the residual risk due to open issues can help the IS auditor assess the impact and likelihood of the potential threats and vulnerabilities that have not been addressed by the auditee, as well as the adequacy and effectiveness of the existing controls or mitigating actions. Evaluating the residual risk due to open issues can also help the IS auditor prioritize and communicate the open issues to the auditee and other stakeholders, such as senior management or audit committee, and recommend appropriate actions or escalation procedures. Ensuring the open issues are retained in the audit results is a course of action for an IS auditor when an auditee is unable to close all audit recommendations by the time of the follow-up audit, but it is not the best one. Ensuring the open issues are retained in the audit results can help the IS auditor document and report the status and progress of the audit recommendations, as well as provide a basis for future follow-up audits. However, ensuring the open issues are retained in the audit results does not provide an analysis or evaluation of the residual risk due to open issues, which is more important for informing decision-making and action- taking. Terminating the follow-up because open issues are not resolved is not a course of action for an IS auditor when an auditee is unable to close all audit recommendations by the time of the follow-up audit, but rather a consequence or outcome of it. Terminating the follow-up because open issues are not resolved may indicate that the auditee has failed to comply with the agreed-upon actions or deadlines, or that the IS auditor has encountered significant obstacles or resistance from the auditee. Terminating the follow-up because open issues are not resolved may also trigger further actions or sanctions from the IS auditor or other authorities, such as issuing a qualified or adverse opinion, withholding certification, or imposing penalties. Recommending compensating controls for open issues is not a course of action for an IS auditor when an auditee is unable to close all audit recommendations by the time of the follow-up audit, but rather a possible outcome or result of it. Compensating controls are alternative or additional controls that are implemented to reduce or eliminate the risk associated with a weakness or deficiency in another control. Recommending compensating controls for open issues may be appropriate when the auditee is unable to implement the original audit recommendations due to technical, operational, financial, or other constraints, and when the compensating controls can provide a similar or equivalent level of assurance. However, recommending compensating controls for open issues requires a prior evaluation of the residual risk due to open issues, which is more important for determining whether compensating controls are necessary and feasible. References: * Follow-up Audits - Canadian Audit and Accountability Foundation 1 * Conducting The Audit Follow-Up: When To Verify - The Auditor 2 * Internal Audit Follow Ups: Are They Really Worth The Effort
Question 53
Which of the following should be the GREATEST concern to an IS auditor reviewing an organization's method to transport sensitive data between offices?
Correct Answer: C
Explanation The greatest concern to an IS auditor reviewing an organization's method to transport sensitive data between offices is that the method relies exclusively on the use of asymmetric encryption algorithms. Asymmetric encryption algorithms, also known as public key encryption, use two different keys for encryption and decryption: a public key that is shared with anyone who wants to communicate with the sender, and a private key that is kept secret by the sender. Asymmetric encryption algorithms are more secure than symmetric encryption algorithms, which use the same key for both encryption and decryption, but they are also slower and more computationally intensive. Therefore, relying exclusively on asymmetric encryption algorithms may not be efficient or practical for transporting large amounts of sensitive data between offices. A better method would be to use a combination of symmetric and asymmetric encryption algorithms, such as using asymmetric encryption to exchange a symmetric key and then using symmetric encryption to encrypt and decrypt the data. The other options are not as concerning as option C. The method relying exclusively on the use of public key infrastructure (PKI) is not a concern, because PKI is a system that provides the services and mechanisms for creating, managing, distributing, using, storing, and revoking digital certificates that are based on asymmetric encryption algorithms. PKI enables secure and authenticated communication between parties who do not have a prior trust relationship. The method relying exclusively on the use of digital signatures is not a concern, because digital signatures are a way of verifying the authenticity and integrity of a message or document by using asymmetric encryption algorithms. Digital signatures ensure that the sender cannot deny sending the message or document, and that the receiver can detect any tampering or alteration of the message or document. The method relying exclusively on the use of 128-bit encryption is not a concern, because 128-bit encryption is a level of encryption that uses a 128-bit key to encrypt and decrypt data. 128-bit encryption is considered to be strong enough to resist brute-force attacks by modern computers. References: Asymmetric vs Symmetric Encryption: What are differences?, Public Key Infrastructure (PKI), Digital Signature, What is 128-bit Encryption?
Question 54
An IS auditor reviewing an organization's data file control procedures finds that transactions are applied to the most current files, while restart procedures use earlier versions. The IS auditor should recommend the implementation of:
Correct Answer: C
Section: Protection of Information Assets Explanation: For processing to be correct, it is essential that the proper version of a file is used. Transactions should be applied to the most current database, while restart procedures should use earlier versions. Source documentation should be retained for an adequate time period to enable documentation retrieval, reconstruction or verification of data, but it does not aid in ensuring that the correct version of a file will be used. Data file security controls prevent access by unauthorized users who could then alter the data files; however, it does not ensure that the correct file will be used. It is necessary to ensure that all documents have been received for processing, one-for-one; however, this does not ensure the use of the correct file.
Question 55
An organization has implemented a distributed security administration system to replace the previous centralized one. Which of the following presents the GREATEST potential concern?
Correct Answer: A
A distributed security administration system is a system that allows different administrators to manage the security of different parts of the network or organization. This can provide more flexibility, scalability, and efficiency than a centralized system, where one administrator is responsible for the entire security. However, a distributed security administration system also presents some potential challenges and risks, such as: * Inconsistency and conflict among different security policies and standards * Lack of coordination and communication among different administrators * Difficulty in monitoring and auditing the overall security status and performance * Increased complexity and cost of security management and maintenance Therefore, the greatest potential concern for implementing a distributed security administration system is that the security procedures may be inadequate to support the change. Security procedures are the rules and guidelines that define how security is implemented and enforced in an organization. They include policies, standards, processes, roles, responsibilities, controls, and metrics. Security procedures should be aligned with the business objectives, risks, and requirements of the organization, as well as the best practices and regulations in the industry. Security procedures should also be reviewed and updated regularly to reflect the changes in the environment, technology, and threats. If the security procedures are not adequate to support the change from a centralized to a distributed security administration system, the organization may face increased security risks, such as unauthorized access, data breaches, compliance violations, reputation damage, and financial losses. Therefore, it is essential to ensure that the security procedures are revised and adapted to suit the new system, and that they are communicated and enforced effectively across the organization. References: * 1: Security in Distributed System - GeeksforGeeks * 2: Distributed System Security Architecture - Wikipedia * 3: Distributed Systems Security: Issues, Processes and Solutions
