CISA Exam Dumps - Isaca Certification Questions and Answers

The IS auditor’s first course of action should be to verify the results of the critical automatic calculations made by the system to determine the validity of user concerns. This is because the IS auditor needs to obtain sufficient and appropriate audit evidence to support the audit findings and conclusions. By verifying the results, the IS auditor can assess whether there are any errors or discrepancies in the system’s calculations that could affect the accuracy and reliability of the financial data. The IS auditor can use various techniques to verify the results, such as re-performing the calculations, comparing them with expected values, or tracing them to source documents. 

 The metric that best indicates the effectiveness of awareness training is the number of users reporting receipt of the email to the information security team. This shows that the users are able to recognize and report a phishing email, which is a common social engineering technique used by attackers to trick users into revealing sensitive information or installing malicious software. The other metrics do not demonstrate a high level of security awareness, as they either ignore, follow, or forward the phishing email, which could expose the organization to potential risks. References: CISA Review Manual, 27th Edition, page 326

An outsourced accounting application has the most inherent risk and should be prioritized during audit planning because it involves external parties, sensitive data, and complex transactions that are susceptible to material misstatement, error, or fraud12. An outsourced accounting application also requires more oversight and monitoring from the internal audit department to ensure compliance with the service level agreement and the organization’s policies and standards3.

References

1: Inherent Risk: Definition, Examples, and 3 Types of Audit Risks 2: 3 Types of Audit Risk - Inherent, Control and Detection - Accountinguide 3: IS Audit Basics: The Core of IT Auditing

The most important factor when defining the IS audit scope is to understand the relationship between IT and business risks, as this helps to identify the areas that have the most potential impact on the organization’s objectives, performance, and value. By understanding the IT and business risks, the IS auditor can focus the audit scope on the key processes, systems, controls, and issues that need to be assessed and addressed.

References

ISACA CISA Review Manual, 27th Edition, page 256

Ten Factors to Consider when Setting the Scope of an Internal Audit

What Is an Audit Scope? | Auditing Basics | KirkpatrickPrice

Comprehensive and Detailed Step-by-Step Explanation:

Ifmeasurable benefitswerenot defined, the organizationcannot assess whether the system achieved its intended goals, making it the mostcriticalissue.

Measurable Benefits Not Defined (Correct Answer – D)

No clear KPIs or success metricsmeans no way toevaluate ROI.

Example:A company implementsan ERP systembut has no performance indicators to measure success.

No Lessons Learned (Incorrect – A)

Important but doesnot impact system effectiveness.

Missing Dashboard Deliverables (Incorrect – B)

A reporting issue,not a strategic failure.

Budget Overrun (Incorrect – C)

A financial concern butnot as critical as system success measurement.

The effectiveness of an organization’s security awareness program can be measured by capturing data on changes in the way people react to threats, such as the ability to recognize and avoid social engineering attacks1. An increase in the number of phishing emails reported by employees indicates that they are more aware of the signs and risks of phishing, and are more likely to take appropriate actions to prevent or mitigate the impact of such attacks23.

References

1: The Importance Of Measuring Security Awareness 2: Measuring the effectiveness of your security awareness program 3: How effective is security awareness training?

The effectiveness of an organization’s security awareness program can be measured by capturing data on changes in the way people react to threats, such as the ability to recognize and avoid social engineering attacks1. An increase in the number of phishing emails reported by employees indicates that they are more aware of the signs and risks of phishing, and are more likely to take appropriate actions to prevent or mitigate the impact of such attacks23.

References

1: The Importance Of Measuring Security Awareness 2: Measuring the effectiveness of your security awareness program 3: How effective is security awareness training?

 Input validation is the best control to address SQL injection vulnerabilities, because it can prevent malicious users from entering SQL commands or statements into input fields that are intended for data entry, such as usernames or passwords. SQL injection is a technique that exploits a security vulnerability in an application’s software by inserting SQL code into a query string that can execute commands on a database server. Unicode translation, SSL encryption, and digital signatures are not effectivecontrols against SQL injection, because they do not prevent or detect SQL code injection into input fields. References: CISA Review Manual (Digital Version), Chapter 5, Section 5.4.2

 Secure coding practices are the best way to prevent cross-site scripting (XSS) attacks, because they can ensure that the web application validates and sanitizes user input and output data to prevent malicious scripts from being executed on the web browser. XSS attacks are a type of web application vulnerability that exploit the lack of input validation or output encoding in webpages that accept user input or display dynamic content. Application firewall policy settings, a three-tier web architecture, and use of common industry frameworks are not effective controlsto prevent XSS attacks, because they do not address the root cause of the vulnerability in the web application code. References: CISA Review Manual (Digital Version), Chapter 5, Section 5.4.2

The most effective way to maintain network integrity when using mobile devices is to implement network access control. Network access control is a security control that regulates and restricts access to network resources based on predefined policies and criteria, such as device type, identity, location, or security posture. Network access control can help maintain network integrity when using mobile devices by preventing unauthorized or compromised devices from accessing or affecting network systems or data. The other options are not as effective as network access control in maintaining network integrity when using mobile devices, as they do not address all aspects of network access or security. Implementing outbound firewall rules is a security control that filters and blocks network traffic based on source, destination, protocol, or port, but it does not regulate or restrict network access based on device characteristics or conditions. Performing network reviews is a monitoring activity that evaluates and reports on the performance, availability, or security of network resources, but it does not regulate or restrict network access based on device characteristics or conditions. Reviewing access control lists is a verification activity that validates and confirms the access rights and privileges of network users or devices, but it does not regulate or restrict network access based on device characteristics or conditions. References: CISA Review Manual (Digital Version), Chapter 5, Section 5.2.2

A disaster recovery plan (DRP) is a set of procedures and resources that enable an organization to restore its critical operations, data, and applications in the event of a disaster1. A DRP should be aligned with the organization’s business continuity plan (BCP), which defines the strategies and objectives for maintaining business functions during and after a disaster1.

To ensure that a DRP is effective, it should betested regularly and thoroughly to identify and resolve any issues or gaps that might hinder itsexecution2345. Testing a DRP can help evaluate its feasibility, validity, reliability, and compatibility with the organization’s environment and needs4. Testing can also help prepare the staff, stakeholders, and vendors involved in the DRP for their roles and responsibilities during a disaster3.

There are different methods and levels of testing a DRP, depending on the scope, complexity, and objectives of the test4. Some of the common testing methods are:

Walkthrough testing: This is a step-by-step review of the DRP by the disaster recovery team and relevant stakeholders. It aims to verify the completeness and accuracy of the plan, as well as to clarify any doubts or questions among the participants45.

Simulation testing: This is a mock exercise of the DRP in a simulated disaster scenario. It aims to assess the readiness and effectiveness of the plan, as well as to identify any challenges or weaknesses that might arise during a real disaster45.

Checklist testing: This is a verification of the availability and functionality of the resources and equipment required for the DRP. It aims toensure that the backup systems, data, anddocumentation are accessible and up-to-date45.

Full interruption testing: This is the most realistic and rigorous method of testing a DRP. It involves shutting down the primary site and activating the backup site for a certain period of time. It aims to measure the actual impact andperformance of the DRP under real conditions45.

Parallel testing: This is a less disruptive method of testing a DRP. It involves running the backup site in parallel with the primary site without affecting the normal operations. It aims to compare and validate the results and outputs of both sites45.

Amongthese methods, full interruption testing would best demonstrate that an effectiveDRP is in place, as it provides the most accurate and comprehensive evaluation ofthe plan’s capabilities and limitations4. Full interruption testing can reveal any hidden or unforeseen issues or risks that might affect the recovery process, such as data loss, system failure, compatibility problems, or human errors4. Full interruption testing can also verify that the backup site can support the critical operations and services ofthe organization without compromising its quality or security4.

However, full interruption testing also has some drawbacks, such as being costly, time-consuming, risky, and disruptive to the normaloperations4. Therefore, it should be planned carefullyand conducted periodically with proper coordination and communication among all parties involved4.

The other options are not as effective as full interruption testing in demonstrating that an effective DRP is in place. Frequent testing of backups is only one aspect of checklist testing, which does not cover other components or scenarios of the DRP4. Annual walk-through testing is only atheoretical review of the DRP, which does not test its practical implementation or outcomes4. Periodic risk assessment is only a preparatory step for developing or updating the DRP, which does not test its functionality or performance4.

The best recommendation to prevent fraudulent electronic funds transfers by accounts payable employees is dual control. Dual control is a segregation of duties control that requires two or more individuals to perform or authorize a transaction or activity. Dual control can prevent fraudulent electronic funds transfers by requiring independent verification and approval of payment requests, amounts, and recipients by different accounts payable employees. The other options are not as effective as dual control in preventing fraudulent electronic funds transfers, as they do not involve independent checks or approvals. Periodic vendor reviews are detective controls that can help identify any irregularities or anomalies in vendor payments, but they do not prevent fraudulent electronic funds transfers from occurring. Independent reconciliation is a detective control that can help compare and confirm payment records with bank statements, but it does not prevent fraudulent electronic funds transfers from occurring. Re-keying of monetary amounts is an input control that can help detect any errors or discrepancies in payment amounts, but it does not prevent fraudulentelectronic funds transfers from occurring. References: CISA Review Manual (Digital Version), Chapter 3, Section 3.2

 The IS auditor’s first action after discovering an option in a database that allows the administrator to directly modify any table should be to determine whether the audit trail is secured and reviewed. This is because direct modification of database tables can pose a significant risk to data integrity, security, and accountability. An audit trail is a record of all changes made to database tables, including who made them, when they were made, and what was changed. An audit trail can help to detect unauthorized or erroneous changes, provide evidence for investigations or audits, and support data recovery or restoration. The IS auditor should assess whether the audit trail is protected from tampering or deletion, and whether it is regularly reviewed for anomalies or exceptions.

Prior to a follow-up engagement, if an IS auditor learns that management has decided to accept a level of residual risk related to an audit finding without remediation, the IS auditor should report the issue to IS audit management. This is because IS audit management is responsible for ensuring that audit findings are properly communicated and resolved. Accepting management’s decision and continuing the follow-up would not address the IS auditor’s concern. Reporting the disagreement to the board or executive management would be premature and inappropriate without consulting IS audit management first. References: CISA Review Manual (Digital Version), Chapter 1, Section 1.6

The first step when creating a data classification program is to develop a policy (D). A data classification policy is a document that defines the purpose, scope, objectives, roles, responsibilities, and procedures of the data classification program. A data classification policy is essential for establishing the governance framework, standards, and guidelines for the data classification process. A data classification policy also helps to communicate the expectations and benefits of the data classification program to the stakeholders, such as data owners, users, custodians, and auditors12.

Categorizing and prioritizing data (A) is not the first step when creating a data classification program, but the third step. Categorizing and prioritizing data involves defining and applying the criteria and labels for classifying data based on its sensitivity, value, and risk. For example, data can be categorized into public, internal, confidential, or restricted levels. Categorizing and prioritizing data helps to identify and protect the most critical and sensitive data assets of the organization12.

Developing data process maps (B) is not the first step when creating a data classification program, but the fourth step. Developing data process maps involves documenting and analyzing the flow and lifecycle of data within the organization. Data process maps show how data is created, collected, stored, processed, transmitted, used, shared, archived, and disposed of. Developing data process maps helps to understand the context and dependencies of data, as well as to identify and mitigate any potential risks or issues related to data quality, security, or compliance12.

Categorizing information by owner © is not the first step when creating a data classification program, but the second step. Categorizing information by owner involves assigning roles and responsibilities for each type of data based on its ownership and stewardship. Data owners are the individuals or entities that have the authority and accountability for the data. Data stewards are the individuals or entities that have the operational responsibility for managing and maintaining the data. Data custodians are the individuals or entities that have the technical responsibility for implementing and enforcing the security and access controls for the data12.

 The most important thing for the organization to ensure when reducing the actual retention period for media containing completed low-value transactions is that the retention period complies with data owner responsibilities. Data owners are accountable for the quality, security, and availability of the data under their control. They are also responsible for defining and enforcing data retention policies that comply with legal, regulatory, contractual, and business requirements. Data owners should be consulted and involved in any decision that affects the retention period of their data, as they are ultimately liable for any consequences of data loss or breach.

The policy includes a strong risk-based approach, the retention period allows for review during the year-end audit, and the total transaction amount has no impact on financial reporting are not the most important things for the organization to ensure when reducing the actual retention period for media containing completed low-value transactions. These are possible factors or benefits that may influence or justify the decision, but they do not override or replace the data owner responsibilities.

Tabletop exercises are a type of simulation used to test an organization’s incident response plan12. They involve key stakeholders in a hypothetical scenario to see how they would respond12. This allows management to assess the effectiveness of the incident response process and identify areas for improvement12. Regularly conducting these exercises ensures that the organization is prepared for a real incident and that the incident response process remains effective over time12.

Effective governance over IT infrastructure is indicated by the ability to deliver continuous, reliable performance12. This is because good governance ensures that IT investments support business objectives and produce measurable results towards achieving their strategies2. It involves implementing management and internal controls, strengthening security, financial controls, risk mitigation, and inspection and compliance obligations3. While security awareness programs, the number of servers, and the number of security incidents can be aspects of IT governance, they are not the best indicators of its effectiveness.

A business continuity plan (BCP) is a document that outlines how an organization will continue its critical functions in the event of a disruption or disaster. A BCP should include the following elements1:

Business impact analysis: This is the process of identifying and prioritizing the key business processes and assets that are essential for the organization’s survival and recovery.

Risk assessment: This is the process of identifying and evaluating the potential threats and vulnerabilities that could affect the organization’s business continuity.

Recovery strategies: These are the actions and procedures that the organization will implement to restore its normal operations as quickly and effectively as possible after a disruption or disaster.

Recovery objectives: These are the metrics that define the acceptable level of recovery for the organization’s business processes and assets. The two main recovery objectives are:

Recovery point objective (RPO): This is the maximum amount of data loss that the organization can tolerate in terms of time. For example, an RPO of one hour means that the organization can afford to lose up to one hour’s worth of data after a disruption or disaster.

Recovery time objective (RTO): This is the maximum amount of time that the organization can tolerate to restore its normal operations after a disruption or disaster. For example, an RTO of four hours means that the organization must resume its normal operations within four hours after a disruption or disaster.

Testing and validation: This is the process of verifying and evaluating the effectiveness and efficiency of the BCP and its components. Testing and validation can include various methods, such as:

Tabletop exercises: These are discussion-based sessions where team members meet in an informal setting to review and discuss their roles and responsibilities during a disruption or disaster scenario. A facilitator guides participants through a discussion of one or more scenarios2.

Simulation exercises: These are more realistic and interactive sessions where team members perform their roles and responsibilities during a simulated disruption or disaster scenario. A facilitator controls and monitors the simulation and injects events and challenges3.

Full-scale exercises: These are the most complex and realistic sessions where team members perform their roles and responsibilities during a real-life disruption or disaster scenario. A facilitator coordinates and evaluates the exercise with external stakeholders, such as emergency services, media, or customers4.

As an IS auditor, your greatest concern when reviewing the organization’s BCP would be A. The recovery plan does not contain the process and application dependencies.

Data loss can occur due to various reasons, such as accidental deletion, hardware failure, malware infection, theft, or unauthorized access. Data classification procedures can help to identify and protect sensitive data, but they are not sufficient to prevent data loss. The most effective way to protect against data loss is to conduct periodic security awareness training for employees, which can educate them on the importance of data security, the best practices for data handling and storage, and the common threats and risks to data. 

One benefit of return on investment (ROI) analysis in IT decision making is that it provides the basis for allocating financial resources. ROI analysis is a method of evaluating the profitability or cost-effectiveness of an IT project or investment by comparing the expected benefits with the required costs. ROI analysis can help IT decision makers prioritize and justify their IT initiatives, allocate their financial resources optimally, and demonstrate the value contribution of IT to the organization’s goals and objectives. Basis for allocating indirect costs, cost of replacing equipment, and estimated cost of ownership are not benefits of ROI analysis in IT decision making. These are more inputs or outputs of ROI analysis that could be used to calculate or estimate the costs or benefits of an IT project or investment. References: [ISACA CISA Review Manual 27th Edition], page 307

The best approach from a risk management perspective when implementing a large and complex data center IT infrastructure is to use a deployment plan based on sequenced phases, as this will allow the organization to break down the project into manageable and measurable stages, and to monitor and control the progress, quality, and outcomes of each phase12. A phased deployment plan can also help to reduce the risks of errors, failures, or disruptions that could affect the entire infrastructure, and to implement corrective actions or contingency plans as needed34.

References

1: Data Center Project Planning: A Guide to Success2 2: Data Center Project Planning: A Guide to Success4 3: Data Center Migration: A Step-by-Step Guide3 4: Data Center Migration: A Step-by-Step Guide1

Understanding the business process flow is crucial as it provides insights into how different applications and organizational functions use and update the database fields in real-time. This perspective helps the auditor validate that appropriate business approvals are in place for these use cases.

References

ISACA CISA Review Manual 27th Edition, Page 128-129 (Business Process Flow)

 If an IS auditor finds that management did not address a prior period audit finding, the next course of action should be to interview management to determine why the finding was not addressed, as this would help to understand the root cause, the impact, and the risk level of the issue. Noting the exception in a new report, recommending alternative solutions, or conducting a risk assessment are possible subsequent steps, but they should not precede interviewing management. References: CISA Review Manual (Digital Version), Chapter 1, Section 1.6

The best guard against the risk of attack by hackers is encryption. Encryption is the process of transforming data into an unreadable format using a secret key or algorithm. Encryption can protect data in transit and at rest from unauthorized access, modification, or disclosure by hackers. Encryption can also ensure the authenticity and integrity of data by using digital signatures or hashes.

Tunneling, message validation, and firewalls are not the best guards against the risk of attack by hackers. Tunneling is a technique that encapsulates one network protocol within another to create a secure connection between two endpoints. Message validation is a process that verifies the format, content, and origin of a message before accepting it. Firewalls are devices or software that filter network traffic based on predefined rules. These controls may help reduce the exposure or impact of hacker attacks, but they do not provide the same level of protection as encryption.

 The primary reason for an IS auditor to conduct post-implementation reviews is to determine whether project objectives in the business case have been achieved. A post-implementation review is an audit activity that evaluates whether a project has delivered its expected outcomes or benefits in accordance with its objectives, scope, budget, and schedule. A business case is a document that defines and justifies the need, value, and feasibility of a project. A post-implementation review can help assess whether project objectives in the business case have been achieved by comparing actual results with planned expectations and identifying any gaps or deviations. The other options are not primary reasons for conducting post-implementation reviews, as they do not measure whether project objectives in the business case have been achieved. Ensuring key stakeholder sign-off has been obtained is a project closure activity that confirms that all project deliverables have been completed and accepted by key stakeholders, but it does not evaluate whether project objectives in the business case have been achieved. Aligning project objectives with business needs is a project initiation activity that ensures that the project is aligned with the organization’s strategy, goals, and priorities, but it does not evaluate whether project objectives in the business case have been achieved. Documenting lessons learned to improve future project delivery is a project learning activity that captures and shares the knowledge, experience, and feedback gained from the project, but it does not evaluate whether project objectives in the business case have been achieved. References: CISA Review Manual (Digital Version), Chapter 3, Section 3.3

Shadow IT refers to the use of IT systems, devices, software, or services without explicit organizational approval. This often occurs when employees or departments adopt tools that bypass official IT governance structures.

Using a Cloud-Based Order Management Tool Without Approval (Option A)is a clear example of shadow IT because the employee is circumventing established IT policies to implement a solution independently.

Accessing Personal Banking Information on a Company-Provided Laptop (Option B)is a potential misuse of resources but does not qualify as shadow IT since it does not involve unauthorized technology.

Using Personal Email for Client Communication (Option C)may violate communication policies but is not related to the adoption of unapproved IT systems.

Accessing Social Media on a Company-Provided Tablet (Option D)is improper use of a company asset but does not involve unauthorized IT tools.

Shadow IT introduces risks such as data breaches, lack of compliance, and inefficiencies due to lack of integration with official systems. Organizations should have clear policies and monitoring mechanisms to address such risks.

A digital signature is a specific type of e-signature that is backed by a digital certificate. A digital certificate is a document that contains the public key of a signer and is issued by a trusted third party called a certificate authority (CA). A digital signature provides proof of the identity of the signer and the integrity of the signed document.

A characteristic of a digital signature is that it is unique to the message. This means that a digital signature cannot be copied from one document to another without being detected as invalid. A digital signature is created by applying a mathematical function called a hashing algorithm to the document. A hashing algorithm produces a fixed-length output called a hash or digest from any input data. The hash is unique to the input data; any change in the input data will result in a different hash.

The signer then encrypts the hash with their private key (a secret key that only they know) to create the digital signature. The encrypted hash is attached to the document as the digital signature. The recipient of the document can verify the digital signature by decrypting it with the signer’s public key (a key that is publicly available and matches the private key) to obtain the hash. The recipient then applies the same hashing algorithm to the document to generate another hash. The recipient then compares the two hashes; if they match, it means that the document has not been altered and that the signer is authentic.

Therefore, a digital signature is unique to the message because it is derived from the hash of the message, which is unique to the message.

 The answer C is correct because preventive maintenance is outsourced to multiple vendors without requiring nondisclosure agreements (NDAs) would be of greatest concern to an IS auditor reviewing on-site preventive maintenance for an organization’s business-critical server hardware. This is because outsourcing preventive maintenance to multiple vendors without NDAs exposes the organization to the risk of unauthorized access, disclosure, or modification of sensitive data and information stored on the servers. NDAs are legal contracts that bind the vendors to protect the confidentiality and security of the data and information they access or handle during the preventive maintenance. Without NDAs, the vendors may not have any obligation or incentive to safeguard the data and information, and they may misuse, leak, or compromise them for malicious or commercial purposes. This could result in financial losses, reputational damage, legal liabilities, or regulatory penalties for the organization.

The other options are not as concerning as option C. Preventive maintenance costs exceed the business allocated budget (option A) is a financial issue that may affect the profitability or efficiency of the organization, but it does not directly impact the security or availability of the server hardware. Preventive maintenance has not been approved by the information system (option B) is a procedural issue that may indicate a lack of coordination or communication between the IT department and the business units, but it does not necessarily affect the quality or effectiveness of the preventive maintenance. The preventive maintenance schedule is based on mean time between failures (MTBF) parameters (option D) is a technical issue that may influence the frequency or timing of the preventive maintenance, but it does not imply any risk or deficiency in the preventive maintenance itself.

The concept of materiality is most important for an IS auditor to apply when planning an audit engagement, because it helps the auditor to determine the scope, objectives, procedures and resources of the audit. Materiality is the degree to which an omission or misstatement of information could affect the users’ decisions or the achievement of the audit objectives. By applying the concept of materiality, the auditor can focus on the most significant and relevant areas of the audit and avoid wasting time and effort on trivial or immaterial matters. The other options are not as important as planning an audit engagement, because they are either based on or affected by the materiality assessment done during the planning phase. References:

ISACA, CISA Review Manual, 27th Edition, chapter 1, section 1.31

ISACA, IT Audit and Assurance Standards, Guidelines and Tools and Techniques forIS Audit and Assurance Professionals, section 12022