CISA 100 Practice Questions
Compiled and arranged by:
Arshad Ali Javed
FCA, CISA, CIA, CFE, DISA
1. An IS auditor, performing a review of an application’s controls, discovers a
weakness in system software, which could materially impact the application. The IS
A. Disregard these control weaknesses as a system software review is beyond the
scope of this review.
B. Conduct a detailed system software review and report the control weaknesses.
C. Include in the report a statement that the audit was limited to a review of the
D. Review the system software controls as relevant and recommend a detailed
system software review.
The IS auditor is not expected to ignore control weaknesses just because they
are outside the scope of a current review. Further, the conduct of a detailed
systems software review may hamper the audit’s schedule and the IS auditor
may not be technically competent to do such a review at this time. If there are
control weaknesses which have been discovered by the IS auditor, they should
be disclosed. By issuing a disclaimer, this responsibility would be waived. Hence,
the appropriate option would be to review the systems software as relevant to
the review and recommend a detailed systems software for which additional
resources may be recommended.
2. The reason for having controls in an IS environment:
A. remains unchanged from a manual environment, but the implemented control
features may be different.
B. changes from a manual environment, therefore the implemented control features
may be different.
C. changes from a manual environment, but the implemented control features will be
D. remains unchanged from a manual environment and the implemented control
features will also be the same.
The internal control objectives apply to all areas, whether manual or automated.
There are additional objectives to be achieved in the IS environment, when
compared to the manual environment. Common control objectives remain
unchanged in both the IS environment and manual environment, although the
implementation of the control functions may be different in the IS
environment, e.g., the adequacy of backup/recovery in a common internal
control objective for IS and manual environment. The specific IS control
objective may be to adequately back up the files to allow for proper recovery.
This may be achieved by implementing proper control procedures, such as
business continuity policy, in the IS department. Therefore, the implementation
of the control functions may be different in the IS environment. But the common
control objectives in an IS environment remains unchanged from a manual
3. Which of the following types of risks assumes an absence of compensating
controls in the area being reviewed?
A. Control risk
B. Detection risk
C. Inherent risk
D. Sampling risk
The risk that an error exists that could be material or significant when combined
with other errors encountered during the audit, there being no related
compensating controls, is the inherent risk. Control risk is the risk that a material
error exists that will not be prevented or detected on a timely basis by the
system of internal controls. Detection risk is the risk when an IS auditor uses an
inadequate test procedure and concludes that material errors do not exist, when
they do. Sampling risk is the risk that incorrect assumptions are made about
the characteristics of a population from which a sample is taken.
4. An IS auditor is conducting substantive audit tests of a new accounts receivable
module. The IS auditor has a tight schedule and limited computer expertise. Which
would be the BEST audit technique to use in this situation?
A. Test data
B. Parallel simulation
C. Integrated test facility
D. Embedded audit module
Test data uses a set of hypothetical transactions to verify the program
logic and internal control in short a time and for an auditor with minimal
IT background. In a parallel simulation, the results produced for an
actual program are compared with the results from a program written
for the IS auditor; this technique can be time consuming and requires IT
expertise. An integrated test facility, enables test data to be continually
evaluated when transactions are processed online; this technique is time
consuming and requires IT expertise. An embedded audit module is a
programmed module that is inserted into an application program to test
controls; this technique is time consuming and requires IT expertise.
5. The PRIMARY purpose of compliance tests is to verify whether:
A. controls are implemented as prescribed.
B. documentation is accurate and current.
C. access to users is provided as specified.
D. data validation procedures are provided.
Compliance tests are performed primarily to verify whether controls, as
chosen by management, are implemented. Verification of documents is
not directly related to compliance testing. Verifying whether access to
users is provided is an example of compliance testing. Data validation
procedures are part of application controls. Testing whether these are
set as parameters and working as envisaged is compliance testing.
6. Which of the following BEST describes the early stages of an IS audit?
A. Observing key organizational facilities.
B. Assessing the IS environment.
C. Understanding business process and environment applicable to the review.
D. Reviewing prior IS audit reports.
Understanding the business process and environment applicable to the review is
most representative of what occurs early on, in the course of an audit. Other
choices relate to activities actually occurring within this process.
7. The document used by the top management of organizations to delegate authority to
the IS audit function is the:
A. long-term audit plan.
B. audit charter.
C. audit planning methodology.
D. steering committee minutes.
The audit charter outlines the overall authority, scope and
responsibilities of the audit function to achieve the audit objectives
stated in it. This document serves as an instrument for the delegation of
authority to the IS audit function. Long-term audit planning relates to
those aspects of the audit plan that are impacted by the organization’s
IT strategy and environment. Audit planning commences only after the
audit charter has been approved by the highest level of management.
The audit planning methodologies are decided upon based on the
analysis of both long- and short-term audit issues. The steering
committee minutes should address the approval of the audit charter but
is not the driver that delegates authority.
8. Before reporting results of an audit to senior management, an IS auditor should:
A. Confirm the findings with auditees.
B. Prepare an executive summary and send it to auditee management.
C. Define recommendations and present the findings to the audit committee.
D. Obtain agreement from the auditee on findings and actions to be taken.
Upon completion of an audit, an IS auditor should discuss with auditees
the audit objectives for work performed, the test and evaluation
techniques used, and the outcome of those tests that led to findings.
The auditor should also obtain the agreement/disagreement of the
auditee regarding the findings and the actions the auditor plans to take.
9. While developing a risk-based audit program, which of the following would the IS
auditor MOST likely focus on?
A. Business processes
B. Critical IT applications
C. Corporate objectives
D. Business strategies
A risk-based audit approach focuses on the understanding of the nature of the
business and being able to identify and categorize risk. Business risks impact the
long-term viability of a specific business. Thus an IS auditor using a risk-based
audit approach must be able to understand business processes.
10. Which of the following is a substantive audit test?
A. Verifying that a management check has been performed regularly
B. Observing that user IDs and passwords are required to sign on the computer
C. Reviewing reports listing short shipments of goods received
D. Reviewing an aged trial balance of accounts receivable
A review of accounts receivable will provide evidence of the validity and propriety of the
financial statement balance. Choices A, B and C are compliance tests to determine that
policies and procedures are being followed.
11. Which of the following tasks is performed by the same person in a well-controlled
information processing facility/computer center?
A. Security administration and management
B. Computer operations and system development
C. System development and change management
D. System development and systems maintenance
It is common for system development and maintenance to be undertaken by
the same person. In both cases, the programmer requires access to the source
code in the development environment, but should not be allowed access in the
production environment. Choice A is not correct because the roles of security
administration and change management are incompatible functions. The level of
security administration access rights could allow changes to go undetected.
Computer operations and system development (choice B) are incompatible since
it would be possible for an operator to run a program that he/she had amended.
Choice C is incorrect because the combination of system development and
change control would allow program modifications to bypass change control
12. Where adequate segregation of duties between operations and programming are
not achievable, the IS auditor should look for:
A. compensating controls.
B. administrative controls.
C. corrective controls.
D. access controls.
The IS auditor should identify compensating controls such as strong computer
security, reviewing access control logs, end-user reconciliation of control reports
and control information in transaction reports, where adequate segregation of
duties is not achievable. Administrative controls deal with operational
effectiveness, efficiency and adherence to management policies. Corrective
controls are designed to correct errors, omissions and unauthorized uses and
intrusions once they are detected. Access control is the process that limits and
controls access to resources of a computer system.
13. Which of the following would be included in an IS strategic plan?
A. Specifications for planned hardware purchases
B. Analysis of future business objectives
C. Target dates for development projects
D. Annual budgetary targets for the IS department
IS strategic plans must address the needs of the business and meet future business
objectives. Hardware purchases may be outlined but not specified and neither budget
targets nor development projects are relevant choices. Choices A, C and D are not
14. The MOST important responsibility of a data security officer in an organization is:
A. recommending and monitoring data security policies.
B. promoting security awareness within the organization.
C. establishing procedures for IT security policies.
D. administering physical and logical access controls.
A data security officer’s prime responsibility is recommending and monitoring data security
policies. Promoting security awareness within the organization is one of the responsibilities
of a data security officer. But, it is not as important as recommending and monitoring data
security policies. The IT department, not the data security officer, is responsible for
establishing procedures for IT security policies recommended by the data security officer
and for the administration of physical and logical access controls.
15. Which of the following BEST describes an IT department’s strategic planning
A. The IT department will have either short-range or long-range plans depending on
the organization’s broader plans
B. The IT department’s strategic plan must be time and project oriented, but not so
detailed as to address and help determine priorities to meet business needs.
C. Long-range planning for the IT department should recognize
goals, technological advances and regulatory
D. Short-range planning for the IT department does not need to be integrated into the
short-range plans of the organization since technological advances will drive the IT
department plans much quicker than organizational plans.
Long-range planning for the IT department should recognize organizational
goals, technological advances and regulatory requirements. Typically, the IT department
will have both long-range and short-range plans that are consistent and integrated with
the organization’s plans. These plans must be time- and project-oriented, as well as
addressing the organization’s broader plans for attaining the organization’s goals.
16. When a complete segregation of duties cannot be achieved in an online system
environment, which of the following functions should be separated from the others?
Authorization should be separated from all aspects of record keeping (origination,
recording, and correction). Such a separation enhances the ability to detect the recording
of unauthorized transactions.
17. In a small organization, where segregation of duties is not practical, an employee
performs the function of computer operator and application programmer. Which of the
following controls should the IS auditor recommend?
A. Automated logging of changes to development libraries
B. Additional staff to provide segregation of duties
C. Procedures that verify that only approved program changes are implemented
D. Access controls to prevent the operator from making program modifications
In smaller organizations, it generally is not appropriate to recruit additional staff
to achieve a strict segregation of duties. The IS auditor must look at alternatives.
Of the choices, C is the only practical one that has an impact. The IS auditor
should recommend processes that detect changes to production source and
object code, such as code comparisons so that the changes can be reviewed by
a third party on a regular basis. This would be a compensating control process.
Choice A, involving logging of changes to development libraries, would not
detect changes to production libraries. Choice D is in effect requiring a third
party to do the changes, which may not be practical in a small organization.
18. An IT steering committee would MOST likely perform which of the following
A. Placement of a purchase order with the approved IT vendor
B. Installation of systems software and application software
C. Provide liaison between IT department and user department
D. Interview staff for the IT department
A steering committee for information technology is a mechanism to ensure that
the information systems strategies are in harmony with the corporate mission
and objectives. Such a committee typically serves as a general review board for
major IS projects and should not become involved in routine operations.
Placement of purchase orders, installation of software and interviewing staff for
the IT department are routine operations that are performed by the respective
departments. A steering committee would provide a liaison between the IS
department and the user department.
19. An IS auditor is auditing the controls relating to employee termination. Which of the
following is the MOST important aspect to be reviewed?
A. The related company staff are notified about the termination
B. User ID and passwords of the employee have been deleted
C. The details of employee have been removed from active payroll files
D. Company property provided to the employee has been returned
The highest risk is logical access to information by a terminated employee. This form of
access is possible if the user id and password of the terminated employee have not been
deleted. If the user id is not disabled or deleted, it is possible that the employee without
physically visiting the company can access the information. The potential of loss on
account of access to information is much higher, compared to payment of salary and nonreturn of company property.
20. When reviewing a service level agreement for an outsourced computer center an IS
auditor should FIRST determine that:
A. the cost proposed for the services is reasonable.
B. security mechanisms are specified in the agreement.
C. the services in the agreement are based on an analysis of business needs.
D. audit access to the computer center is allowed under the agreement.
The first consideration in reviewing the agreement is to ensure that the business
is asking for the most appropriate services to meet its business requirements.
There should be evidence that they have considered what services are
required, both at present and in the future. The cost is important (choice
A), since the business may be paying for levels of services that are not required
or are not appropriate, but is not of first importance. Both, audit access (choice
D) and security objectives, rather than security mechanisms (choice B), are
issues to be considered as part of the review, but are not of first importance.
21. The PRIMARY benefit of database normalization is the:
A. minimization redundancy of information in tables required to satisfy users’ needs.
B. ability to satisfy more queries.
C. maximization of database integrity by providing information in more than one table.
D. minimization of response time through faster processing of information.
The normalization means the elimination of redundant data. Hence, the
objective of normalization in relational databases is to minimize the quantum of
information by eliminating redundant data in tables, quickly processing users’
requests and maintaining data integrity. Maximizing the quantum of information
is against the rules of normalization. If particular information is provided in
difference tables, the objective of data integrity may be violated because one
table may be updated and not others. Normalization rules advocate storing data
in only one table, hence, minimizing the response time through faster
processing of information.
22. Which of the following network topologies yields the GREATEST redundancy in the
event of the failure of one node?
In mesh configuration, devices are connected with many redundant
interconnections among network nodes, thereby, yielding the greatest
redundancy in the event that one of the nodes fail, in which case network traffic
can be redirected to another node. In star configuration, each station is linked
to the main hub. The main hub establishes the connection between stations by
message or line switching. Therefore, failure of a node results in the disruption
of the network. In ring configuration, all nodes are connected to one another—
forming a circle; therefore, the failure of a node results in the disruption of the
network. In bus configuration, all devices are linked along one communication
line with two end points called the backbone; therefore, the failure of a node
results in the disruption of the network.
23. A vendor/contractor’s performance against service level agreements must be
evaluated by the:
D. contractor’s management.
Only the customer should evaluate the supplier’s performance in a service level agreement
(SLA). This makes the customer confident of the service provided by the supplier.
However, the decision of what to measure must be decided by the customer and the
24. When auditing a mainframe operating system, what would the IS auditor do to
establish which control features are in operation?
A. Examine the parameters used when the system was generated
B. Discuss system parameter options with the vendor
C. Evaluate the systems documentation and installation guide
D. Consult the systems programmers
The only way to establish which controls are functioning in a current operating system is
to determine what the parameter settings were at the time the system was generated or
created (often referred to as the initial program load or IPL). Although the findings of this
exercise may well be further evaluated by discussion with the vendor, evaluating the
documentation and consulting the systems programmers, these actions would not, by
themselves, establish specific control features.
25. When conducting an audit of client/server database security, the IS auditor would be
MOST concerned about the availability of:
A. system utilities.
B. application program generators.
C. system security documentation.
D. access to stored procedures.
System utilities may enable unauthorized changes to be made to data on the
client-server database. In an audit of database security, the controls over such
utilities would be the primary concern of the IS auditor. Application program
generators are an intrinsic part of client-server technology, and the IS auditor
would evaluate the controls over the generators access rights to the database
rather than their availability. Security documentation should be restricted to
authorized security staff, but this is not a primary concern, nor is access to
26. Which of the following would allow a company to extend it’s enterprise’s intranet
across the Internet to it’s business partners?
A. Virtual private network
C. Dial-Up access
D. Network service provider
VPN technology allows external partners to securely participate in the extranet
using public networks as a transport or shared private network. Because of low
cost, using public networks (Internet) as a transport is the principal method.
VPNs rely on tunneling/encapsulation techniques, which allow the Internet
protocol (IP) to carry a variety of different protocols (e.g., SNA, IPX, NETBEUI.)
Client-server does not address extending the network to business partners
(I.e., client-servers refers to a group of computers within an organization
connected by a communications network where the client is the request
machine and the server is the supplying machine.) A network service provider
may provide services to a shared private network by providing Internet
services, but it does not extended an organization’s intranet.
27. An IS auditor auditing hardware monitoring procedures should review
A. system availability reports.
B. cost-benefit reports.
C. response time reports.
D. database utilization reports.
An IS auditor while auditing hardware monitoring procedures will review system availability
reports. Cost-benefit reports are reviewed during the feasibility study. Response time
reports are related to applications, not hardware. Database utilization reports are reviewed
to check the optimal usage of the database across the organization.
28. The device that connects two networks at the highest level of the ISO-OSI
framework ( i.e., application layer) is a
Gateway is used to connect two networks using dissimilar protocols at the lower layers
through which connectivity is established namely physical, data link, network and transport
layers. Router is a network layer device for which the two connecting networks must have
the same network layer protocol. Bridge operates in the data link layer. It should have
data link layer protocols, such as token ring, Ethernet, in use in both the networks.
Brouter is essentially a bridge with some routing functionality.
29. Which of the following statements relating to packet switching networks is
A. Packets for a given message travel the same route.
B. Passwords cannot be embedded within the packet.
C. Packet lengths are variable and each packet contains the same amount of
D. The cost charged for transmission is based on packet, not distance or route traveled.
D is the correct answer since transmission charges are based on packets transmitted, not
the distance or route traveled. Passwords and other data can be placed within a packet
making choice B incorrect. Choices A and C are not correct because a complete message is
broken into transmission units (packets), which are routed individually through the
30. An IS auditor when reviewing a network used for Internet communications, will
FIRST examine the:
A. validity of passwords change occurrences.
B. architecture of the client-server application.
C. network architecture and design.
D. firewall protection and proxy servers.
The first step in auditing a network is to understand the network architecture and design.
This would provide an overall picture of the network of the enterprises and its connectivity.
This will be starting point for identifying the various layers of information and the access
architecture across the various layers, such as proxy servers, firewalls and client/server
application. Reviewing validity of password changes would be performed as part of
31. Which of the following BEST provides access control to payroll data being processed
on a local server?
A. Logging of access to personal information
B. Separate password for sensitive transactions
C. Software restricts access rules to authorized staff
D. System access restricted to business hours
The server and system security should be defined to allow only authorized staff
access to information about the staff whose records they handle on a day to day
basis. Choice A is a good control in that it will allow access to be analyzed if
there is concern that there is unauthorized access. However, it will not prevent
access. Choice B, restricting access to sensitive transactions, will only restrict
access to part of the data. It will not prevent access to other data. Choice
D, system access restricted to business hours, only restricts when unauthorized
access can occur, and would not prevent such access at other times.
32. Which of the following concerns about the security of an electronic message would
be addressed by digital signatures?
A. Unauthorized reading
C. Unauthorized copying
A digital signature includes an encrypted hash total of the size of the message as it was
transmitted by its originator. This hash would no longer be accurate if the message was
subsequently altered, thus indicating that the alteration had occurred. Digital signatures
will not identify or prevent any of the other options. The signature would neither prevent
nor deter unauthorized reading, copying or theft.
33. The MOST effective method for limiting the damage of an attack by a software virus
A. software controls.
B. policies, standards and procedures.
C. logical access controls.
D. data communication standards.
Software controls in the form of virus detection and removal programs are the most
effective method way to detect and remove viruses. Policies, standards and procedures
are important, because they are people-based; however, they are generally considered
less effective than software controls. Choices C and D, are not relevant to virus detection.
34. Which of the following BEST determines that complete encryption and authentication
protocols exist for protecting information while transmitted?
A. A digital signature with RSA has been implemented.
B. Work is being done in tunnel mode with the nested services of AH and ESP
C. Digital certificates with RSA are being used.
D. Work is being done in transport mode, with the nested services of AH and ESP
Tunnel mode provides encryption and authentication of the complete IP package. To
accomplish this, the AH (authentication header) and ESP (encapsulating security payload)
services can be nested. The transport mode provides primary protection for the protocols’
higher layers, this is, protection extends to the data field (payload) of an IP package. The
other two mechanisms provide authentication and integrity.
35. Which of the following would be MOST appropriate to ensure the confidentiality of
transactions initiated via the Internet?
A. Digital signature
B. Data encryption standard (DES)
C. Virtual private network (VPN)
D. Public key encryption
Encryption is the only way to ensure Internet transactions are confidential, and of the
choices available, the use of public key encryption is the best method. Digital signatures
would ensure the transaction is not changed and cannot be repudiated, but would not
36. The PRIMARY objective of a firewall is to protect:
A. internal systems from exploitation by external threats.
B. external systems from exploitation by internal threats.
C. internal systems from exploitation by internal threats.
D. itself and attached systems against being used to attack other systems.
Firewall is placed at the point where the internal network connects to the
outside world I.e., Internet. It acts as a security guard to the
network, protecting it against malicious attacks from outside the organization’s
network. It screens packets coming into and going out of the internal network
and prevents malicious packets from entering it and denies access to prohibited
resources on the Internet for the internal users. It is neither the responsibility
nor is it possible for the organization to protect outside systems. Packets whose
source and destination IP addresses refer to hosts within the same network are
not sent out of the network and hence do not pose a security threat. Choice D is
not a primary objective as this is just one form of attack hackers resort to that
the firewall protects the internal network form.
37. Which of the following is an example of the physiological biometrics technique?
A. Hand scans
B. Voice scans
C. Signature scans
D. Keystroke monitoring
Physiological biometrics are based on measurement of data derived from direct
measurement of a part of the human body. Choices B, C and D are examples of behavior
38. An IS auditor has just completed a review of an organization that has a mainframe
and a client-server environment where all production data reside. Which of the following
weaknesses would be considered the MOST serious?
A. The security officer also serves as the database administrator (DBA.)
B. Password controls are not administered over the client/server environment.
C. There is no business continuity plan for the mainframe system’s non-critical
D. Most LANs do not back up file server fixed disks regularly.
The absence of password controls on the client-server where production data resides is
the most critical weakness. All other findings, while they are control weaknesses, do not
carry the same disastrous impact.
39. An organization is proposing to install a single sign-on facility giving access to all
systems. The organization should be aware that:
A. Maximum unauthorized access would be possible if a password is disclosed.
B. User access rights would be restricted by the additional security parameters.
C. The security administrator’s workload would increase.
D. User access rights would be increased.
If a password is disclosed when single sign-on is enabled, there is a risk that unauthorized
access to all systems will be possible. User access rights should remain unchanged by
single sign-on as additional security parameters are not necessarily implemented. One of
the intended benefits of single sign-on is that security administration would be simplified
and an increased workload is unlikely.
40. A B-to-C e-commerce web site as part of its information security program wants to
monitor, detect and prevent hacking activities and alert the system administrator when
suspicious activities occur. Which of the following infrastructure components could be
used for this purpose?
A. Intrusion detection systems
D. Asymmetric encryption
Intrusion detection systems detect intrusion activity based on the intrusion rules. It can
detect both, external and internal intrusion activity and send an automated alarm message.
Firewalls and routers prevent the unwanted and well-defined communications between the
internal and external networks. They do not have any automatic alarm messaging
41. During an audit of a reciprocal disaster recovery agreement between two companies,
the IS auditor would be PRIMARILY concerned about:
A. the soundness of the impact analysis.
B. hardware and software compatibility.
C. differences in IS policies and
D. frequency of system testing.
For a reciprocal agreement to be effective, hardware and software at the two
sites must be compatible. Processes to ensure this occurred must be in place.
Choice D, frequency of system testing, is a concern, but the reason for
considering this is that it tests hardware and software compatibility. Choice A is
an issue when examining the planning process, not the reciprocal agreement.
Choice C is not an issue since the organization can have differences in policies
and procedures and still be able to run their systems on each other’s sites in the
event of a disaster.
42. An IS auditor discovers that an organization’s business continuity plan provides for an
alternate processing site that will accommodate fifty percent of the primary processing
capability. Based on this, which of the following actions should the IS auditor take?
A. Do nothing, because generally, less than twenty-five percent of all processing is critical to
an organization’s survival and the backup capacity, therefore is adequate.
B. Identify applications that could be processed at the alternate site and develop manual
procedures to backup other processing.
C. Ensure that critical applications have been identified and that the alternate site could
process all such applications.
D. Recommend that the information processing facility arrange for an alternate processing site
with the capacity to handle at least seventy-five percent of normal processing.
Business continuity plans should provide for the recovery of critical systems, not
necessarily all systems. Perhaps only fifty percent of the company's systems are
critical. Therefore, careful assessment of critical systems and capacity
requirements should be part of the IS auditor's test of the plan.
43. Which of the following components of a business continuity plan is PRIMARILY the
responsibility of an organization’s IS department?
A. Developing the business continuity plan
B. Selecting and approving the strategy for business continuity plan
C. Declaring a disaster
D. Restoring the IS systems and data after a disaster
The correct choice is restoring the IT systems and data after a disaster.
The IT department of an organization is primarily responsible for
restoring the IT systems and data after a disaster at the earliest possible
time. The senior management of the organization is primarily
responsible for developing the business continuity plan for an
organization. They are also responsible for selecting and approving the
strategy for developing and implementing a detailed business continuity
plan. The organization should identify a person in management as
responsible for declaring a disaster. Although IT is involved in all the
other three components, it is not primarily responsible for them.
44. Which of the following issues should be included in the business continuity plan?
A. The staff required to maintain critical business functions in the short, medium and
B. The potential for a natural disaster to occur, such as an earthquake
C. Disastrous events impacting information systems processing and end-user functions
D. A risk analysis that considers systems malfunctions, accidental file deletions or other
Where a unified business continuity plan does not exist, the plan for information systems processing
should be extended to include planning for all units that are dependent upon information systems
processing functions. But, when formulating a thorough business continuity plan, a very important issue
to be considered is the staff that will be required to maintain critical business functions over time, until
the organization is fully operational again. Another important issue is the configuration of the business
facilities, e.g., desks, chairs, telephones, etc., that will be needed to maintain critical business functions
in the short, medium and long term. Choice B is incorrect because it has to do with what a good
business continuity plan will take into account in case of disastrous events happening. This could be
considered as a subset of a business continuity plan, but it does not have the same impact as the staff
required and trained to perform in the event of a natural disaster. Choice C is incorrect because, like in
the natural disaster case, this could be considered a subset of a business continuity plan, but it does
not have the same impact as the staff required and trained to perform in the event of a disaster that
would impact information systems processing and end-user functions. Choice A would be the subject
and choices B and C would be the cause to deploy the business continuity plan. Choice D is incorrect
because it deals with disruptions in service having their roots in systems malfunctions; but again, this
would be another aspect dealt with in the business continuity plan, but not a main issue included in it.
45. In an audit of a business continuity plan, which of the following findings is of MOST
A. There is no insurance for the addition of assets during the year.
B. BCP manual is not updated on a regular basis.
C. Testing of the backup of data has not been done regularly.
D. Records for maintenance of access system have not been maintained.
The most vital asset for a company is data. In a business continuity plan,
it is critical to ensure that data is available. Hence, regular testing of the
backup of data must be done. If testing is not done, the organization
may not be able to retrieve data when required during a disaster; hence,
the company may lose its most valuable asset and may not be able to
recover from the disaster. The loss on account of lack of insurance is
limited to the value of assets. If the BCP manual is not updated, the
company may find the BCP manual not fully relevant for recovery during
a disaster. However, recovery could be still possible. Non maintenance
of records in an access system will not directly impact the relevance of
the business continuity plan.
46. Classification of information systems is essential in business continuity planning.
Which of the following system types can not be replaced by manual methods?
A. Critical system
B. Vital system
C. Sensitive system
D. Non-critical system
The functions of a critical system can only be replaced by identical capabilities. The
functions of vital and sensitive systems can be performed manually. Choice D is a
47. An IS auditor should be involved in:
A. observing tests of the disaster recovery plan.
B. developing the disaster recovery plan.
C. maintaining the disaster recovery plan.
D. reviewing the disaster recovery requirements of supplier contracts.
The IS auditor should always be present when disaster recovery plans
are tested, to ensure that the test meets the required targets for
restoration and recovery procedures are effective and
efficient, reporting on the results as appropriate. IS auditors may be
involved in overseeing plan development, but they are unlikely to be
involved in the actual development process. Similarly, an audit of plan
maintenance may be conducted, but the IS auditor would not normally
have any responsibility for the actual maintenance. An IS auditor may
be asked to comment upon various elements of a supplier contract
but, again, this is not always the case.
48. The window of time recovery of information processing capabilities is based on the:
A. criticality of the processes affected.
B. quality of the data to be processed.
C. nature of the disaster.
D. applications that are mainframe based.
The criticality of the processes that are affected by the disaster is the basis for
computing the window of time recovery. The quality of the data to be processed
and the nature of the disaster are not the basis for determining the window of
time. Being a mainframe application does not of itself provide a window of time
49. During an IT audit of a large bank, an IS auditor observes that no formal risk
assessment exercise has been carried out for the various business applications to arrive
at their relative importance and recovery time requirements. The risk that the bank is
exposed to is that the:
A. business continuity plan may not have been calibrated to the
relative risk that
disruption of each application poses to the organization.
B. business continuity plan may not include all relevant applications and therefore may
lack completeness in terms of its coverage.
C. business impact of a disaster may not have been accurately understood by the
D. business continuity plan may lack an effective ownership by the business owners of
The first and key step in developing a business continuity plan is a risk
assessment exercise that analyzes the various risks that an organization
faces and the impact of non-availability of individual applications.
Section 126.96.36.199 of BS 7799 (Standard on Information Security
Management ) states that “a strategy plan, based on appropriate risk
assessment, shall be developed for overall approach to business
50. Which of the following is necessary to have FIRST in the development of a business
A. Risk-based classification of systems
B. Inventory of all assets
C. Complete documentation of all disasters
D. Availability of hardware and software
A well-defined, risk-based classification system for all assets and processes of the
organization is one of the most important component for initializing the business continuity
planning efforts. A well-defined risk-based classification system would assist in identifying
the criticality of each of the key processes and assets used by the organization. This would
assist in the easy identification of key assets and processes to be secured and plans to be
made to recover these processes and assets at the earliest after a disaster. Inventory of
critical assets and not all assets is required for initiating a business continuity plan.
Complete documentation of all disasters is not a prerequisite for initiating a business
continuity plan, rather various disasters are considered while developing the plan and only
the one having an impact on the organization is addressed in the plan. The availability of
hardware and software is not required for initiating the development of a plan; however, it
is considered when developing the detailed plan in accordance with the strategy adopted.
51. The application test plans are developed in which of the following systems
development life cycle (SDLC) phases?
Developing test plans for the various levels of testing is one of the key activities during the
application development design phase. The test plans are used in the actual software
52. Which of the following tests confirm that the new system can operate in its target
A. Sociability testing
B. Regression testing
C. Validation testing
D. Black box testing
Sociability testing is used to confirm that the new or modified system
can operate in its target environment without adversely impacting on
existing system. Regression testing is the process of rerunning a portion
of a test scenario or test plan to ensure that changes or corrections
have not introduced new errors. Validation testing is used to test the
functionality of the system against the detailed requirement to ensure
that the software that has been built is traceable to customer
requirements. Black box testing examines some aspect of the system
during integration testing with little regard for the internal logical
structure of the software.
53. The MOST appropriate person to chair the steering committee for a system
development project with significant impact on a business area would be the:
A. business analyst.
B. chief information officer.
C. project manager.
D. executive level manager.
The chair of the steering committee should be a senior person
(executive level manager) with the authority to make decisions relating
to the business requirements, resources, priority and deliverables of the
system. The chief information officer (CIO) would not normally be the
chair, although the CIO or his representative would be a member to
provide input on organization wide strategies. The project manager and
the business analyst do not have an appropriate level of authority within
54. The PRIMARY purpose of undertaking a parallel run of a new system is to:
A. verify that the system provides required business functionality.
B. validate the operation of the new system against its predecessor.
C. resolve any errors in the program and file interfaces.
D. verify that the system can process the production load.
The objective of parallel running is to verify that the new system
produces the same results as the old system. The verification of
functionality is through acceptance testing, while resolving errors in
programs is accomplished through system testing. Verifying that the
system can handle the production load may be a secondary outcome of
a parallel run, but it is not the primary purpose. If it were the primary
purpose, it would be a stress test probably run in the test environment.
55. Change control procedures to prevent scope creep during an application
development project should be defined during:
D. requirements definition.
The change control procedures are generally common for applications
within one organization; however, the application-specific change
control procedures are to be defined during the design phase of SDLC
and should be based on the modules in the software. The other choices
are incorrect. It is too early to define change control procedures during
the feasibility phase, and it would also be too late during the
implementation phase and after the implementation of software.
56. Which of the following would MOST likely ensure that a system development project
meets business objectives?
A. Maintenance of program change logs
B. Development of a project plan identifying all development activities
C. Release of application changes at specific times of the year
D. User involvement in system specification and acceptance
Effective user involvement (choice D) is the most critical factor in ensuring that
the application meets business objectives. Choices A, B and C are project
management tools and techniques and are not of themselves methods for
ensuring that the business objectives are met by the application system.
57. Which of the following is a measure of the size of an information system based on
the number and complexity of a system’s inputs, outputs and files?
A. Function point (FP)
B. Program evaluation review technique (PERT)
C. Rapid application design (RAD)
D. Critical path method (CPM)
Function point (FP) analysis is a measure of the size of an information
system based on the number and complexity of the inputs, outputs and
files with which a user sees and interacts with. FPs are used in a manner
analogous to LOC as a measure of software productivity, quality and
other attributes. PERT is a network management technique used in both
the planning and control of projects. RAD is a methodology that enables
organizations to develop strategically important systems faster while
reducing development costs and maintaining quality. CPM is used by
network management techniques such as PERT, to compute a critical
58. When auditing the requirements phase of a software acquisition, the IS auditor
A. assess the feasibility of the project timetable.
B. assess the vendor’s proposed quality processes.
C. ensure that the best software package is acquired.
D. review the completeness of the specifications.
The purpose of the requirements phase is to specify the functionality of
the proposed system; therefore the IS auditor would concentrate on the
completeness of the specifications. The decision to purchase a package
from a vendor would come after the requirements have been
completed. Therefore choices B and C are incorrect. Choice A is
incorrect because a project timetable normally would not be found in a
59. The purpose of debugging programs is to:
A. generate random data that can be used to test programs before implementing them.
B. protect, during the programming phase, valid changes from being overwritten by
C. define the program development and maintenance costs to be include in the
D. ensure that program abnormal terminations and program coding flaws are detected
Debugging provides the basis for the programmer to correct the logic errors in a
program under development before it goes into production. Tools such as logic
paths monitors, memory dumps and output analyzers aid in this process.
60. Software maintainability BEST relates to which of the following software attributes?
A. Resources needed to make specified modifications.
B. Effort needed to use the system application.
C. Relationship between software performance and the resources needed.
D. Fulfillment of user needs.
Maintainability is the set of attributes that bears on the effort needed to make specified
modifications. Other choices relate to software attributes for usability, efficiency and
61. IT governance ensures that an organization aligns its IT strategy with:
A. Enterprise objectives.
B. IT objectives.
C. Audit objectives.
D. Finance objectives.
IT governance ensures that the organization aligns its IT strategy with the
enterprise/business objectives. Choices B, C and D are too limited.
62. A validation which ensures that input data are matched to predetermined reasonable
limits or occurrence rates, is known as:
A. Reasonableness check.
B. Validity check.
C. Existence check.
D. Limit check.
A reasonableness check ensures that input data are matched to
predetermined reasonable limits or occurrence rates. A validity check is
a programmed checking of the data validity in accordance with
predetermined criteria. Existence checks are checks for data reentered
correctly and agree with valid predetermined criteria. A limit check
ensures data does not exceed a predetermined amount.
63. During which of the following steps in the business process reengineering should the
benchmarking team visit the benchmarking partner?
During the observation stage, the team collects data and visits the
benchmarking partner. In the planning stage, the team identifies the
critical processes for the benchmarking purpose. The analysis stage
involves summarizing and interpreting the data collected and analyzing
the gaps between an organization’s process and its partner’s process.
During the adaptation step, the team needs to translate the findings into
a few core principles and work down from principles to strategies, to
64. Which of the following procedures should be implemented to help ensure the
completeness of inbound transactions via electronic data interchange (EDI)?
A. Segment counts built into the transaction set trailer
B. A log of the number of messages received, periodically verified with the transaction
C. An electronic audit trail for accountability and tracking
D. Matching acknowledgement transactions received to the log of EDI messages sent
Control totals built into the trailer record of each segment is the only option that
will ensure all individual transactions sent are completely received. The other
options provide supporting evidence, but their findings are either incomplete or
65. A utility is available to update critical tables in case of data inconsistency. This utility
can be executed at the OS prompt or as one of menu options in an application. The
BEST control to mitigate the risk of unauthorized manipulation of data is to:
A. delete the utility software and install it as and when required.
B. provide access to utility on a need-to-use basis.
C. provide access to utility to user management
D. define access so that the utility can be only executed in menu option.
Utility software in this case is a data correction program for correcting
any inconsistency in data. However, this utility can be used to over-ride
wrong update of tables directly. Hence, access to this utility should be
restricted on a need-to-use basis and a log should be automatically
generated whenever this utility is executed. The senior management
should review this log periodically. Deleting the utility and installing it as
and when required may not be practically feasible as there would be
time delay. Access to utilities should not be provided to user
management. Defining access so that the utility can be executed in a
menu option may not generate a log.
66. When conducting a review of business process re-engineering, an IS auditor found
that a key preventive control had been removed. In this case, the IS auditor should:
A. inform management of the finding and determine if management is willing to accept
the potential material risk of not having that preventing control.
B. determine if a detective control has replaced the preventive control during the
process and if so, not report the removal of the preventive control.
C. recommend that this and all control procedures that existed before the process was
reengineered be included in the new process.
D. develop a continuous audit approach to monitor the effects of the removal of the
Choice A is the best answer. Management should be informed
immediately to determine if they are willing to accept the potential
material risk of not having that preventive control in place. The
existence of a detective control instead of a preventive control usually
increases the risks that a material problem may occur. Often during a
BPR many non-value-added controls will be eliminated. This is
good, unless they increase the business and financial risks. The IS
auditor may wish to monitor or recommend that management monitor
the new process, but this should be done only after management has
been informed and accepts the risk of not having the preventive control
67. Which of the following is an output control objective?
A. Maintenance of accurate batch registers
B. Completeness of batch processing
C. Appropriate accounting for rejections and exceptions
D. Authorization of file updates
Exceptions and rejections are output products that must be accounted for by appropriate
output controls. Choices A, B and D are input control objectives.
68. In a system that records all receivables for a company, the receivables are posted
on a daily basis. Which of the following would ensure that receivables balances are
unaltered between postings?
A. Range checks
B. Record counts
C. Sequence checking
D. Run-to-run control totals
Run-to-run control totals are totals of key fields - in this case the totals
of the receivables balances - taken when the receivables are posted. If
the totals are recalculated and compared with previous balance, this
would detect alterations between postings. Both record counts and
sequence checking would only detect missing records. They would not
detect situations in which records are altered, but the number of records
are unchanged. Range checks would only detect when the balances are
outside a predetermined value range and not changes to balances
within those ranges.
69. Which of the following is the MOST important issue to the IS auditor in a business
process re-engineering (BPR) project would be?
A. The loss of middle management, which often is a result of a BPR project
B. That controls are usually given low priority in a BPR project
C. The considerable negative impact that information protection could have on BPR
D. The risk of failure due to the large size of the task usually undertaken in a BPR
Controls should be given high priority during a BPR project, therefore this would
be a concern for the IS auditor if they are not adequately considered by
management. The fact that middle management is lost, as stated in choice A, is
not necessarily a concern as long as controls are in place. Choices C and D do
not have any relevance to a BPR project.
70. To meet pre-defined criteria, which of the following continuous audit techniques
would BEST identify transactions to audit?
A. Systems Control Audit Review File and Embedded Audit Modules (SCARF/EAM)
B. Continuous and Intermittent Simulation (CIS)
C. Integrated Test Facilities (ITF)
D. Audit hooks
Continuous and Intermittent Simulation (CIS) is a moderately complex
set of programs that during a process run of a transaction, simulates the
instruction execution of its application. As each transaction is
entered, the simulator decides whether the transaction meets certain
predetermined criteria and if so, audits the transaction. If not, the
simulator waits until it encounters the next transaction that meets the
criteria. Audits hooks which are of low complexity focus on specific
conditions instead of detailed criteria in identifying transactions for
review. ITF is incorrect because its focus is on test versus live data. And
SCARF/EAM focus is on controls versus data.
71. In a risk-based audit approach, an IS auditor, in addition to risk, would be
A. the availability of CAATs.
B. management's representation.
C. organizational structure and job responsibilities.
D. the existence of internal and operational controls
The existence of internal and operational controls will have a bearing on
the IS auditor's approach to the audit. In a risk-based approach the IS
auditor is not just relying on risk, but also on internal and operational
controls as well as knowledge of the company and the business. This
type of risk assessment decision can help relate the cost-benefit analysis
of the control to the known risk, allowing practical choices. The nature
of available testing techniques and management's representations, have
little impact on the risk-based audit approach. Although organizational
structure and job responsibilities need to be considered, they are not
directly considered unless they impact internal and operational controls.
72. The extent to which data will be collected during an IS audit should be determined,
based on the:
A. availability of critical and required information.
B. auditor's familiarity with the circumstances.
C. auditee's ability to find relevant evidence.
D. purpose and scope of the audit being done.
The extent to which data will be collected during an IS audit should be
related directly to the scope and purpose of the audit. An audit with a
narrow purpose and scope would result most likely in less data
collection, than an audit with a wider purpose and scope. The scope of
an IS audit should not be constrained by the ease of obtaining the
information or by the auditor's familiarity with the area being audited.
Collecting all the required evidence is a required element of an IS audit
and the scope of the audit should not be limited by the auditee's ability
to find relevant evidence.
73. The PRIMARY advantage of a continuous audit approach is that it:
A. does not require an IS auditor to collect evidence on system reliability while
processing is taking place.
B. requires the IS auditor to review and follow up immediately on all information
C. can improve system security when used in time-sharing environments that process a
large number of transactions.
D. does not depend on the complexity of an organization's computer systems.
The use of continuous auditing techniques can actually improve system
security when used in time-sharing environments that process a large
number of transactions, but leave a scarce paper trail. Choice A is
incorrect since the continuous audit approach often does require an IS
auditor to collect evidence on system reliability while processing is
taking place. Choice B is incorrect since an IS auditor normally would
review and follow up only on material deficiencies or errors detected.
Choice D is incorrect since the use of continuous audit techniques does
depend on the complexity of an organization's computer systems.
74. Which of the following data entry controls provides the GREATEST assurance that
the data is entered correctly?
A. Using key verification
B. Segregating the data entry function from data entry verification
C. Maintaining a log/record detailing the time, date, employee's initials/user id and
progress of various data preparation and verification tasks
D. Adding check digits
Key verification or one-to-one verification will yield the highest degree of
confidence that data entered is error free. However, this could be
impractical for large amounts of data. The segregation of the data entry
function from data entry verification is an additional data entry control
but does not address accuracy. Maintaining a log/record detailing the
time, date, employee's initials/user ID and progress of various data
preparation and verification tasks, provides an audit trail. A check digit
is added to data to ensure that original data have not been altered. If a
check digit is wrongly keyed, this would lead to accepting incorrect data
but would only apply to those data elements having a check digit.
75. Capacity monitoring software is used to ensure:
A. maximum use of available capacity.
B. that future acquisitions meet user needs.
C. concurrent use by a large number of users.
D. continuity of efficient operations.
Capacity monitoring software shows the actual usage of online systems
versus their maximum capacity. The aim is to enable software support
staff to ensure that efficient operation, in the form of response times, is
maintained in the event that use begins to approach the maximum
available capacity. Systems should never be allowed to operate at
maximum capacity. Monitoring software is intended to prevent this.
Although the software reports may be used to support a business case
for future acquisitions, it would not provide information on the effect of
user requirements and it would not ensure concurrent usage of the
system by users, other than to highlight levels of user access.
76. Which of the following exposures associated with the spooling of sensitive reports
for offline printing would an IS auditor consider to be the MOST serious?
A. Sensitive data can be read by operators.
B. Data can be amended without authorization.
C. Unauthorized report copies can be printed.
D. Output can be lost in the event of system failure.
Unless controlled, spooling for offline printing may enable additional copies to be
printed. Print files are unlikely to be available for online reading by operators.
Data on spool files are no easier to amend without authority than any other file.
There is usually a lesser threat of unauthorized access to sensitive reports in the
event of a system failure.
77. Which of the following types of firewalls would BEST protect a network from an
A. Screened subnet firewall
B. Application filtering gateway
C. Packet filtering router
D. Circuit-level gateway
A screened subnet firewall would provide the best protection. The
screening router can be a commercial router or a node with routing
capabilities and the ability to allow or avoid traffic between nets or
nodes based on addresses, ports, protocols, interfaces, etc. Applicationlevel gateways are mediators between two entities that want to
communicate, also known as proxy gateways. The application level
(proxy) works at the application level, not only at a package level. The
screening controls at package level, addresses, ports, etc. but does not
see the contents of the package. A packet filtering router examines the
header of every packet or data traveling between the Internet and the
78. Applying a retention date on a file will ensure that:
A. data cannot be read until the date is set.
B. data will not be deleted before that date.
C. backup copies are not retained after that date.
D. datasets having the same name are differentiated.
A retention date will ensure that a file cannot be overwritten before that
date has passed. The retention date will not affect the ability to read the
file. Backup copies would be expected to have a different retention date
and therefore may well be retained after the file has been overwritten.
The creation date, not the retention date, will differentiate files with the
79. A digital signature contains a message digest to:
A. show if the message has been altered after transmission.
B. define the encryption algorithm.
C. confirm the identity of the originator.
D. enable message transmission in a digital format.
The message digest is calculated and included in a digital signature to
prove that the message has not been altered. It should be the same
value as a recalculation performed upon receipt. It does not define the
algorithm or enable the transmission in digital format and has no effect
on the identity of the user, being there to ensure integrity rather than
80. Which of the following would be the BEST method for ensuring that critical fields in
a master record have been updated properly?
A. Field checks
B. Control totals
C. Reasonableness checks
D. A before-and-after maintenance report
A before-and-after maintenance report is the best answer because a visual review would
provide the most positive verification that updating was proper.
81. A TCP/IP-based environment is exposed to the Internet. Which of the following
BEST ensures that complete encryption and authentication protocols exist for protecting
information while transmitted?
A. Work is completed in tunnel mode with IP security using the nested services of
authentication header (AH) and encapsulating security payload (ESP).
B. A digital signature with RSA has been implemented.
C. Digital certificates with RSA are being used.
D. Work is being completed in TCP services.
Tunnel mode with IP security provides encryption and authentication of the
complete IP package. To accomplish this, the AH (authentication header) and
ESP (encapsulating security payload) services can be nested. Choices B and C
provide authentication and integrity. TCP services do not provide encryption and
82. To prevent an organization's computer systems from becoming part of a distributed
denial-of-service attack, IP packets containing addresses that are listed as unroutable
can be isolated by:
A. establishing outbound traffic filtering.
B. enabling broadcast blocking.
C. limiting allowable services.
D. network performance monitoring.
Routers programmed with outbound traffic filtering, drop outbound packets that
contain addresses from other than the user's organization, including source
addresses that can not be routed. Broadcast blocking can be done by filtering
routers or firewalls. When programmed, IP packets coming from the Internet
and using an address that broadcasts to every computer on the destination
organization's network can be dropped. Firewalls and filtering routers can be
programmed to limit services not allowed by policy and can help prevent use of
the company's systems. However, this will not isolate packets that can not be
routed. Network performance monitoring is a way to monitor system
performance for potential intrusions on a real-time basis and could help identify
unusual traffic volumes.
83. An IS auditor doing penetration testing during an audit of Internet connections
A. evaluate configurations.
B. examine security settings.
C. ensure virus-scanning software is in use.
D. use tools and techniques that are available to a hacker.
Penetration testing is a technique used to mimic an experienced hacker
attacking a live site by using tools and techniques available to a hacker. The
other choices are procedures that an IS auditor would consider undertaking
during an audit of Internet connections, but are not aspects of penetration
84. An IS auditor performing a telecommunication access control review should be
concerned PRIMARILY with the:
A. maintenance of access logs of usage of various system resources.
B. authorization and authentication of the user prior to granting access to system
C. adequate protection of stored data on servers by encryption or other means.
D. accountability system and the ability to identify any terminal accessing system
The authorization and authentication of users is the most significant
aspect in a telecommunications access control review as it is a
preventive control. Weak controls at this level can affect all other
aspects. The maintenance of access logs of usage of system resources is
a detective control. The adequate protection of data being transmitted
to and from servers by encryption or other means is a method of
protecting information during transmission and is not an access issue.
The accountability system and the ability to identify any terminal
accessing system resources deal with controlling access through the
identification of a terminal.
85. An organization is considering connecting a critical PC-based system to the Internet.
Which of the following would provide the BEST protection against hacking?
A. An application-level gateway
B. A remote access server
C. A proxy server
D. Port scanning
An application-level gateway is the best way to protect against hacking because it can
define with detail rules that describe the type of user or connection that is, or is not
permitted. It analyzes in detail each package, not only in layers one through four of the
OSI model but also layers five through seven, which means that it reviews the commands
of each higher level protocol (HTTP, FTP, SNMP, etc.) For a remote access server there is
a device (server) asking for username and passwords before entering the network. This is
good when accessing private networks, but it can be mapped or scanned from the
Internet creating security exposure. Proxy servers can provide protection based on the IP
address and ports. However, an individual is needed who really knows how to do this, and
second applications can use different ports for the different sections of their program. Port
scanning works when there is a very specific task to do, but not when trying to control
what comes from the Internet (or when all the ports available need to be controlled
somehow). For example, the port for "Ping" (echo request) could be blocked and the IP
addresses would be available for the application and browsing, but would not respond to
86. If a database is restored using before-image dumps, where should the process be
restarted following an interruption?
A. Before the last transaction
B. After the last transaction
C. The first transaction after the latest checkpoint
D. The last transaction before the latest checkpoint
If before images are used, the last transaction in the dump will not have
updated the database prior to the dump being taken. The last transaction will
not have updated the database and must be reprocessed. Program checkpoints
are irrelevant in this situation.
87. Which of the following is a practice that should be incorporated into the plan for
testing disaster recovery procedures?
A. Invite client participation.
B. Involve all technical staff.
C. Rotate recovery managers.
D. Install locally stored backup.
Recovery managers should be rotated to ensure the experience of the recovery
plan is spread. Clients may be involved but not necessarily in every case. Not all
technical staff should be involved in each test. Remote or offsite backup should
always be used.
88. A large chain of shops with EFT at point-of-sale devices has a central
communications processor for connecting to the banking network. Which of the
following is the BEST disaster recovery plan for the communications processor?
A. Offsite storage of daily backups
B. Alternative standby processor onsite
C. Installation of duplex communication links
D. Alternative standby processor at another network node
Having an alternative standby processor at another network node would
be the best. The unavailability of the central communications processor
would disrupt all access to the banking network resulting in the
disruption of operations for all of the shops. This could be caused by
failure of equipment, power or communications. Offsite storage of
backups would not help since EFT tends to be an online process and
offsite storage will not replace the dysfunctional processor. The
provision of an alternate processor onsite would be fine if it were an
equipment problem, but would not help if the outage were caused by
power, for example. Installation of duplex communication links would be
most appropriate if it were only the communication link that failed.
89. Which of the following is an object-oriented technology characteristic that permits
an enhanced degree of security over data?
B. Dynamic warehousing
Encapsulation is a property of objects, which prevents accessing either
properties or methods, that have not been previously defined as public.
This means that any implementation of the behavior of an object is not
accessible. An object defines a communication interface with the
exterior and only whatever belongs to that interface can be accessed.
90. When implementing an application software package, which of the following
presents the GREATEST risk?
A. Uncontrolled multiple software versions
B. Source programs that are not synchronized with object code
C. Incorrectly set parameters
D. Programming errors
Parameters that are not set correctly would be the greatest concern when
implementing an application software package. The other choices, though
important, are a concern of the provider, not the organization that is
implementing the software itself.
91. Which of the following controls would be MOST effective in ensuring that production
source code and object code are synchronized?
A. Release-to-release source and object comparison reports
B. Library control software restricting changes to source code
C. Restricted access to source code and object code
D. Date and time-stamp reviews of source and object code
Date and time stamp reviews of source and object code would ensure that
source code, which has been compiled, matches the production object code.
This is the most effective way to ensure that the approved production source
code is compiled and is the one being used.
92. During a post-implementation review of an enterprise resource management system,
an IS auditor would MOST likely:
A. review access control configuration.
B. evaluate interface testing.
C. review detailed design documentation.
D. evaluate system testing.
Reviewing access control configuration would be first task performed to
determine whether security has been mapped appropriately in the
system. Since a post-implementation review is done after user
acceptance testing and actual implementation, one would not engage in
interface testing or detailed design documentation. Evaluating interface
testing would be part of the implementation process. The issue of
reviewing detailed design documentation is not generally relevant to an
enterprise resource management system since these are usually vendor
packages with user manuals. System testing should be performed before
final user sign off.
93. Which of the following types of controls is designed to provide the ability to verify
data and record values through the stages of application processing?
A. Range checks
B. Run-to-run totals
C. Limit checks on calculated amounts
D. Exception reports
Run-to-run totals provide the ability to verify data values through the stages of
application processing. Run-to-run total verification ensures that data read into
the computer was accepted and then applied to the updating process.
94. The BEST method of proving the accuracy of a system tax calculation is by:
A. detailed visual review and analysis of the source code of the calculation programs.
B. recreating program logic using generalized audit software to calculate monthly totals.
C. preparing simulated transactions for processing and comparing the results to
D. automatic flowcharting and analysis of the source code of the calculation programs.
Preparing simulated transactions for processing and comparing the results to
predetermined results is the best method for proving accuracy of a tax
calculation. Detailed visual review, flowcharting and analysis of source code are
not effective methods, and monthly totals would not address the accuracy of
individual tax calculations.
95. IS management has recently informed the IS auditor of its decision to disable certain
referential integrity controls in the payroll system to provide users with a faster report
generator. This will MOST likely increase the risk of:
A. data entry by unauthorized users.
B. a nonexistent employee being paid.
C. an employee receiving an unauthorized raise.
D. duplicate data entry by authorized users.
Referential integrity controls prevent the occurrence of unmatched foreign key
values. Given that a nonexistent employee does not appear in the employees'
table, it will never have a corresponding entry in the salary payments table. The
other choices cannot be detected by referential integrity controls.
96. Which of the following pairs of functions should not be combined to provide proper
segregation of duties?
A. Tape librarian and computer operator
B. Application programming and data entry
C. Systems analyst and database administrator
D. Security administrator and quality assurance
The role of application programming and data entry should not be combined since no
compensating controls exist that can mitigate the segregation of duties risk. All other
combined pairs of functions are acceptable.
97. An IS auditor who is reviewing application run manuals would expect them to
A. details of source documents.
B. error codes and their recovery actions.
C. program logic flowcharts and file definitions.
D. change records for the application source code.
Application run manuals should include actions taken on reported errors that are
essential for the operator to function properly. Source documents and source
code are irrelevant to the operator. Although dataflow diagrams may be useful,
detailed program diagrams and file definitions are not.
98. Which of the following IS functions may be performed by the same
individual, without compromising on control or violating segregation of duties?
A. Job control analyst and applications programmer
B. Mainframe operator and system programmer
C. Change/problem and quality control administrator
D. Applications and system programmer
The change/problem and quality control administrator are two compatible
functions that would not compromise control or violate segregation of duties.
The other functions listed, if combined, would result in compromising control.
99. Which of the following is the MOST important function to be performed by IT
management within an outsourced environment?
A. Ensuring that invoices are paid to the provider
B. Participating in systems design with the provider
C. Renegotiating the provider's fees
D. Monitoring the outsourcing provider's performance
In an outsourcing environment, the company is dependent on the
performance of the service provider. Therefore it is critical to monitor
the outsourcing provider's performance to ensure that it delivers
services to the company as required. Payment of invoices is a finance
function which would be done per contractual requirements.
Participating in systems design is a by-product of monitoring the
outsourcing provider's performance, while renegotiating fees is usually a
100. An organization has outsourced network and desktop support. Although the
relationship has been reasonably successful, risks remain due to connectivity issues.
Which of the following controls should FIRST be performed to assure the organization
reasonably mitigates these possible risks?
A. Network defense program
C. Adequate reporting between organizations
D. Adequate definition in contractual relationship
The most effective and necessary control that has to be in place first when a
partnering arrangement is used is the contract. The other answers are all good
techniques used to minimize/mitigate controls. However, these may not be
enforceable unless detailed in the contractual arrangement.