CISA Exam Dumps - Isaca Certification Questions and Answers

The best way to determine whether IT investments are meeting business objectives is to compare the realized return on investment (ROI) versus the projected ROI (Option B). This approach measures actual performance against planned expectations.

ISACA CISA Reference: The ISACA IT Governance framework emphasizes performance measurement through ROI analysis, ensuring IT investments align with strategic objectives.

Risk Implication: If actual ROI is lower than projected, this may indicate ineffective investment decisions, poor execution, or misalignment with business goals.

Alternative Choices:

Option A: Break-even analysis only determines when an investment recoups its costs but does not measure performance against business objectives.

Option C: Budgeted versus actual spend assesses financial discipline but does not indicate business impact.

Option D: Industry average ROI provides benchmarking but does not assess internal goal achievement.

Comprehensive and Detailed Explanation:

Corrective controls are measures taken to restore systems or processes after an incident or error has occurred.

Option C: Rollback scripts and backup procedures restore systems, making them corrective controls.

Option A: Separation of duties and hash totals are preventive controls.

Option B: Audit reviews are detective, while remediation may include corrective, but audits themselves aren’t corrective.

Option D: Disciplinary actions are deterrent controls.

???? ISACA Reference: CISA Review Manual 27th Edition, Domain 4, section on types of IT controls (preventive, detective, corrective, deterrent).

The correct answer is C. Reviewing escalated project issues.

A steering committee provides governance, oversight, prioritization, funding direction, issue escalation, and decision-making support for major initiatives. In a digital transformation program, the steering committee is most likely to review escalated project issues, resolve conflicts, approve major decisions, and ensure the program remains aligned with business objectives.

ISACA guidance on digital transformation governance highlights the importance of project governance frameworks, steering committees, and escalation paths. ISACA also describes executive steering committees as bodies that guide strategy, approve funding, make formal risk decisions, and support clear escalation paths and decision-making protocols.

Option A is not correct because designing interface controls is a technical/system design responsibility. Option B is usually performed by business analysts, process owners, and project teams. Option D is usually prepared by the project manager or program manager, although the steering committee may review the status reports.

This question maps to Governance and Management of IT, because steering committees are part of IT governance, strategic oversight, resource allocation, and project/program governance.

The first thing that an IS auditor should do when a follow-up audit reveals some management action plans have not been initiated is to escalate the lack of plan completion to executive management. This is because the failure to implement the agreed management action plans may indicate that the management is not taking the audit findings and recommendations seriously, or that they are accepting too much risk by not addressing the identified issues. Escalating the lack of plan completion to executive management can help to raise awareness and accountability, as well as to seek support and intervention to ensure that the management action plans are executed in a timely and effective manner12.

Confirming whether the identified risks are still valid is not the first thing to do, although it may be a useful step to reassess the current situation and the potential impact of not implementing the management action plans. However,confirming the validity of the risks does not address the root causeof why the management action plans have not been initiated, nor does it provide any assurance or remediation for the unresolved issues34.

Providing a report to the audit committee is not the first thing to do, although it may be a necessary step to communicate and document the results of the follow-up audit. However, providing a report to the audit committee does not guarantee that the management action plans will be initiated, nor does it resolve any conflicts or challenges that may prevent the management from implementing them34.

Requesting an additional action plan review to confirm the findings is not the first thing to do, although it may be a prudent step to verify and validate the accuracy and completeness of the follow-up audit. However, requesting an additional review may delay or defer the implementation of the management action plans, as well as consume more internalaudit resources and time

 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.

Comprehensive and Detailed Explanation:

The most effective way to prevent unauthorized IoT devices from connecting is through network access control (NAC), which enforces authentication and authorization before allowing a device onto the network.

Vulnerability scans (A): Identify weaknesses but do not actively prevent device connections.

Reviewing IoT configurations (B): Focuses on existing devices, not unauthorized ones.

Policies (D): Provide guidance but do not enforce technical prevention.

???? ISACA Reference: CISA Review Manual 27th Edition, Domain 5, section on network security and endpoint access control.

 A network firewall is a device or software that monitors and controls the incoming and outgoing network traffic based on predefined rules. A network firewall can help reduce the risk of denial of service (DoS) attacks, which are attempts to overwhelm a system or network with excessive requests or traffic, by filtering or blocking unwanted or malicious packets. A SQL injection attack is a type of code injection attack that exploits a vulnerability in a web application’s database query, by inserting malicious SQL statements into the input fields. A phishing attack is a type of social engineering attack that attempts to trick users into revealing sensitive information or installing malware, by sending fraudulent emails or messages that impersonate legitimate entities. An insider attack is a type of malicious activity that originates from within an organization, such as employees, contractors, or partners, who abuse their access privileges or credentials to compromise the confidentiality, integrity, or availability of information systems or data. A network firewall cannot prevent these types of attacks, as they rely on exploiting human or application weaknesses rather than network vulnerabilities.

The audit charter is a document that defines the purpose, scope, authority, and responsibility of an IT audit organization. The audit charter should specify roles and responsibilities within an IT audit organization, such as who is accountable for approving the audit plan, who is responsible for conducting the audits, who is authorized to access the audit evidence, and who is accountable for reporting the audit results. The organizational chart, the engagement letter, and the annual audit plan are also important documents for an IT audit organization, but they do not specify roles and responsibilities as clearly and comprehensively as the audit charter. 

 Change control is the process of managing and documenting changes to an information system or its components. Change control aims to ensure that changes are authorized, tested, approved, implemented, and reviewed in a controlled and consistent manner. Change control is an essential part of ensuring the security, reliability, and quality of an information system.

One of the key elements of change control is testing and approval from quality assurance (QA). QA is the function that verifies that the changes meet the requirements and specifications, comply with the standards and policies, and do not introduce any errors or vulnerabilities. QA testing and approval provide assurance that the changes are fit for purpose, function as expected, and do not compromise the security or performance of the system.

An organization that has recently moved to an agile model for deploying custom code to its in-house accounting software system should still follow change control procedures, including QA testing and approval. Agile development methods emphasize flexibility, speed, and collaboration, but they do not eliminate the need for quality and security checks. In fact, agile methods can facilitate change control by enabling frequent and iterative testing and feedback throughout the development cycle.

However, if change control does not include testing and approval from QA, this poses a significant security concern for the organization. Without QA testing and approval, the changes may not be properly validated, verified, or evaluated before being deployed to production. This could result in introducing bugs, defects, or vulnerabilities that could affect the functionality, availability, integrity, or confidentiality of the accounting software system. For example, a change could cause data corruption, performance degradation, unauthorized access, or data leakage. These risks could have serious consequences for the organization’s financial operations, compliance obligations, reputation, or legal liabilities.

Therefore, change control that does not include testing and approval from QA is the most significant security concern to address when reviewing the procedures in place for production code deployment in an agile model.

The greatest concern for an IS auditor when an international organization intends to roll out a global data privacy policy is that local regulations may contradict the policy. Data privacy regulations vary across different countries and regions, and they may impose different or conflicting requirements on how personal data can be collected, processed, stored, transferred, and disclosed. The organization should ensure that its global data privacy policy complies with the applicable local regulations in each jurisdiction where it operates, or risk facing legal sanctions or reputational damage. Requirements may become unreasonable, but this is not a major concern for an IS auditor, as it is a business decision that should be based on a cost-benefit analysis. The policy may conflict with existing application requirements, but this is not a serious concern for an IS auditor, as it can be resolved by modifying or updating the applications to align with the policy. Local management may not accept the policy, but this is not a critical concern for an IS auditor, as it can be mitigated by providing adequate training and awareness on the policy and its benefits. References:

CISA Review Manual, 27th Edition, pages 406-4071

CISA Review Questions, Answers and ExplanationsDatabase, Question ID: 2592

 An audit report of the controls by the service provider’s external auditor provides the best evidence that a third-party service provider’s information security controls are effective. An external auditor is an independent and objective party that can assess the design and operating effectiveness of the service provider’s information security controls based on established standards and criteria. An external auditor can also provide an opinion on the adequacy and compliance of the service provider’s information security controls, as well as recommendations for improvement.

Documentation of the service provider’s security configuration controls is a source of evidence that a third-party service provider’s information security controls are effective, but it is not the best evidence. Documentation of the security configuration controls can show the settings and parameters of the service provider’s information systems and networks, but it may not reflect the actual implementation and operation of the controls. Documentation of the security configuration controls may also be outdated, incomplete, or inaccurate.

An interview with the service provider’s information security officer is a source of evidence that a third-party service provider’s information security controls are effective, but it is not the best evidence. An interview with the information security officer can provide insights into the service provider’s information security strategy, policies, and procedures, but it may not verify the actual performance and compliance of the information security controls. An interview with the information security officer may also be biased, subjective, or misleading.

A review of the service provider’s policies and procedures is a source of evidence that a third-party service provider’s information security controls are effective, but it is not the best evidence. A review of the policies and procedures can show the service provider’s information security objectives, requirements, and guidelines, but it may not demonstrate the actual execution and enforcement of the information security controls. A review of the policies and procedures may also be insufficient, inconsistent, or outdated.

 Team member assignments based on individual competencies is the most important factor to meet the IS audit standard for proficiency. Proficiency is the ability to apply knowledge, skills and experience to perform audit tasks effectively and efficiently. The IS audit standard for proficiency requires that IS auditors must possess the knowledge, skills and discipline to perform audit tasks in accordance with applicable standards, guidelines and procedures. Team member assignments based on individual competencies is a way to ensure that each IS auditor is assigned to audit tasks that match their level of proficiency, and that the audit team as a whole has sufficient and appropriate proficiency to conduct the audit. The other options are not as important as option C, as they do not ensure that the IS auditors have the required proficiency to perform audit tasks. Having a globally recognized audit certification is a way to demonstrate proficiency in IS auditing, but it does not guarantee that the IS auditor has the specific knowledge, skills and experience needed for a particular audit task or system. Technical co-sourcing is a way to supplement the proficiency of the IS audit team by hiring external experts or consultants to perform certain audit tasks or functions, but it does not replace the need for internal IS auditors to have adequate proficiency. Having a supervisor review the new auditors’ work is a way to ensure quality and accuracy of the audit work, but it does not ensure that the new auditors have the necessary proficiency to perform audit tasks independently or competently. References: CISA Review Manual (Digital Version) , Chapter 1: Information Systems Auditing Process, Section 1.4: Audit Skills and Competencies.

A CO2 system could be a concern for an IS auditor when used to protect an asset storage closet. While CO2 systems are effective at suppressing fires, they can pose a significant safety risk to personnel. In the event of a fire,the CO2 system would fill the room with carbon dioxide, displacing the oxygen. This could be hazardous to anyone who might be in the room at the time12.

The first thing that should be performed before key performance indicators (KPIs) can be implemented is the identification of organizational goals. This is because KPIs are measurable values that demonstrate how effectively an organization is achieving its key business objectives4. Therefore, it is necessary that the organization defines its goals clearly and aligns them with its vision, mission, and strategy. By identifying its goals, the organization can then determine what KPIs are relevant and meaningful to measure its progress and performance . References: 4: CISA Review Manual (Digital Version), Chapter 2: Governance and Management of IT, Section 2.3: Benefits Realization, page 77 : CISA Online Review Course, Module 2: Governance and Management of IT, Lesson 2.3: Benefits Realization : ISACA Journal Volume 1, 2020, Article: How to Measure Anything in IT Governance

Parallel processing is a system implementation approach that involves running the new system and the old system simultaneously for a period of time until the new system is verified and accepted. The primary advantage of parallel processing is that it provides assurance that the new system meets performance requirements and produces the same or better results as the old system. Parallel processing also minimizes the risk of system failure and data loss, as the old system can be used as a backup or fallback option in case of any problems with the new system.

The best approach for determining the overall IT risk appetite of an organization when business units use different methods for managing IT risks is to prioritize the organization’s IT risk scenarios. IT risk appetite is the amount and type of IT risk that an organization is willing to accept in pursuit of its objectives. IT risk scenarios are hypothetical situations that describe the potential impact of IT risk events on the organization’s objectives, processes, and resources. By prioritizing the organization’s IT risk scenarios, the IS auditor can identify the most significant IT risks that affect the organization as a whole, and align them with the organization’s strategic goals, values, and culture. Prioritizing the organization’s IT risk scenarios can also help to communicate and monitor the IT risk appetite across the organization, and facilitate consistent and informed decision making. The other approaches (A, B and D) are not effective for determining the overall IT risk appetite of an organization, as they do not consider the impact and likelihood of IT risks on the organization’s objectives, nor do they account for the diversity and complexity of IT risks across different business units. References: CISA Review Manual (Digital Version), Chapter 2: Governance and Management of Information Technology, Section 2.3: Information Technology Risk Management

The best answer is C. Operate in fail-secure mode.

If the goal is to prevent unauthorized entry during a power outage, the doors should remain locked when power fails. That is exactly what fail-secure operation is intended to do. Alarming and monitoring may detect an issue, but they do not themselves prevent entry. Physical key backup may help authorized access, but it does not address the primary requirement of staying secure during loss of power.

So the strongest answer is fail-secure, because it directly preserves physical access control during an outage.

References (Official ISACA):

ISACA physical security and access-control terminology resources support layered protection of facilities.

Comprehensive and Detailed Explanation:

For organizations with multiple regional offices, the primary audit focus should be on processes and system dependencies. Dependencies determine recovery sequencing, resource prioritization, and interconnectivity between systems across regions.

RPO monitoring (A): Important but a subset of overall recovery planning.

Training (C): Necessary but not the first priority when evaluating plan adequacy.

Data backup/storage (D): Technical component but less comprehensive than analyzing dependencies.

???? ISACA Reference: CISA Review Manual 27th Edition, Domain 2, section on disaster recovery planning and interdependencies.

The best recommendation for the IS auditor to make is to implement a closing checklist, as this will help to ensure that all the required tasks and scripts are performed and verified during the year-end closing process12. A closing checklist can also help to prevent errors, omissions, and delays that could affect the accuracy and timeliness of the financial statements3 .

References

1: Year-end closing procedures for GL - Dynamics GP | Microsoft Learn1 2: Year-end activities FAQ - Finance | Dynamics 365 | Microsoft Learn2 3: Year-End Closing Checklist: 10 Steps to Close Your Books3 : Year End Closing Checklist: 7 Steps to Make it Easy

Periodic review of scheduled jobs is crucial to prevent unauthorized or outdated jobs from running, which could lead to security risks, data inconsistencies, or compliance issues. If the inventory of scheduled jobs is not reviewed periodically (A), it could result in jobs running with incorrect parameters, unauthorized transfers, or failure to decommission obsolete processes.

Other options:

Automated support ticket creation (B) is beneficial but is not as critical as ensuring the overall accuracy and security of job execution.

Restricting access to scheduling changes (C) is a security control, but its absence is not the most pressing concern compared to unreviewed jobs.

Notification alerts to a support group (D) is a good practice but does not replace the need for a formal review process.

The role of a document owner when implementing a data classification policy in an organization is to classify documents to correctly reflect the level of sensitivity of information they contain. A document owner is the person who is ultimately responsible for the creation, maintenance, and protection of a document, usually a member of senior management or a business unit1. A data classification policy is a plan that defines how the organization categorizesits data based on its value, risk, and regulatory requirements, and how it handles and secures each data category2.

According to the data classification policy template by Netwrix3, one of the roles and responsibilities of the document owner is to assign data classification labels based on the data’s potential impact level. Data classification labels are tags or markings that indicate the sensitivity level of the data, such as public, internal, confidential, or restricted. The document owner should apply the data classification labels to the documents that contain the data, either manually or automatically, using tools and methods such as metadata, watermarks, headers, footers, or encryption. The document owner should also review and update the data classification labels periodically or whenever there is a change in the data’s sensitivity level.

By classifying documents to correctly reflect the level of sensitivity of information they contain, the document owner can help to ensure that the documents are handled in accordance with the data classification policy. This means that the documents are stored, accessed, shared, transmitted, and disposed of in a secure and appropriate manner, based on the rules and controls defined for each data category. This can also help to prevent data loss, leakage, or breach incidents that may cause harm or damage to the organization or its stakeholders.

Therefore, option A is the correct answer.

Comprehensive and Detailed Explanation:

Fault tolerance refers to the ability of a system to continue functioning despite the occurrence of faults or hardware failures.

Option A: Describes failover, not fault tolerance.

Option B: Is a benefit but not the exact definition.

Option D: Refers to load balancing, not fault tolerance.

???? ISACA Reference: CISA Review Manual 27th Edition, Domain 2, section on system availability, resilience, and fault tolerance.