Free Practice Questions for Isaca CISA Exam

The best source of information for assessing the effectiveness of IT process monitoring is performance data. Performance data is a type of information that measures and reports on the results or outcomes of IT processes, such as availability, reliability, throughput, response time, or error rate. Performance data can help assess the effectiveness of IT process monitoring by providing quantitative and qualitative indicators of whether IT processes are meeting their objectives, standards, or expectations. The other options are not as good as performance data in assessing the effectiveness of IT process monitoring, as they do not provide direct or objective evidence of IT process results or outcomes. Real-time audit software is a type of tool that can help automate and facilitate audit activities, such as data collection, analysis, or reporting, but it does not provide information on IT process performance. Quality assurance (QA) reviews are a type of activity that can help evaluate and improve the quality of IT processes, products, or services, but they do not provide information on IT process performance. Participative management techniques are a type of method that can help involve and motivate IT staff in decision-making and problem-solving processes, but they do not provide information on IT process performance. References: CISA Review Manual (Digital Version), Chapter 3, Section 3.3

 An IS auditor would be most concerned if process ownership has not been established for the information asset management process, as this would indicate a lack of accountability, responsibility, and authority for managing the assets throughout their lifecycle. The process owner should also ensure that the process is aligned with the organization’s objectives, policies, and standards. The process should require specifying the physicallocations of assets, include asset review, and identify asset value, but these are less critical than establishing process ownership. References: CISA Review Manual (Digital Version), Chapter 3, Section 3.3

The most important thing for an IS auditor to review when evaluating the accuracy of a spreadsheet that contains several macros is the formulas within macros. Macros are sequences of commands or instructions that can automate tasks or calculations in a spreadsheet. Formulas are expressions that perform calculations on values or data in a spreadsheet. The accuracy of a spreadsheet depends largely on whether the formulas within macros are correct, consistent, and complete. The IS auditor should review the formulas within macros to verify that they produce the expected results and do not contain any errors or inconsistencies. The other options are not as important as formulas within macros, as they do not directly affect the accuracy of a spreadsheet. Encryption of the spreadsheet is a security control that can protect the confidentiality and integrity of the spreadsheet, but it does not ensure its accuracy. Version history is a document control feature that can track and manage changes to the spreadsheet, but it does not verify its accuracy. Reconciliation of key calculations is a validation technique that can compare and confirm the results of calculations with other sources, but it does not evaluate the accuracy of formulas within macros. References: CISA Review Manual (Digital Version), Chapter 3, Section 3.2

 The greatest concern associated with a high number of IT policy exceptions approved by management is that the exceptions may result in noncompliance. IT policy exceptions are deviations from the established IT policies that are granted by management for specific reasons and circumstances. However, if there are too many exceptions, it may indicate that the IT policies are not aligned with the business needs, regulatory requirements, or best practices. This may expose the organization to legal, contractual, or reputational risks due to noncompliance. The other options are not as concerning as noncompliance, as they do not have the same potential impact or consequences. The exceptions are likely to continue indefinitely is a possible outcome of a high number of exceptions, but it does not necessarily imply a negative effect on the organization. The exceptions may elevate the level of operational risk is a valid concern, but it can be mitigated by implementing compensating controls or monitoring mechanisms. The exceptions may negatively impact process efficiency is a minor concern, as it does not affect the effectiveness or reliability of the IT processes. References: CISA Review Manual (Digital Version), Chapter 3, Section 3.2

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

Network topology diagrams are the most important for an IS auditor to review when evaluating the design of controls related to network monitoring, because they show how the network components are connected and configured, and what security measures are in place to protect the network from unauthorized access or attacks. Incident monitoring logs, the ISP service level agreement, and reports of network traffic analysis are useful for evaluating the effectiveness and performance of network monitoring, but not the design of controls. References: CISA Review Manual (Digital Version), Chapter 5, Section 5.3.3

 The IS auditor’s next course of action after finding that firewalls are outdated and not supported by vendors should be to determine the risk of not replacing the firewall. Outdated firewalls may have known vulnerabilities that can be exploited by attackers to bypass security controls and access the network. They may also lack compatibility with newer technologies or standards that are required for optimal network performance and protection. Not replacing the firewall could expose the organization to various threats, such as data breaches, denial-of-service attacks, malware infections, or regulatory non-compliance. The IS auditor should assess the likelihood and impact of these threats and quantify the risk level for management to make informed decisions.

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 most effective method to verify that a service vendor keeps control levels as required by the client is to conduct periodic on-site assessments using agreed-upon criteria. On-site assessments can provide direct evidence of whether the vendor’s controls are operating effectively and consistently in accordance with the client’s expectations and requirements. Agreed-upon criteria can ensure that the assessments are objective, relevant, and reliable. The other options are not as effective as on-site assessments in verifying the vendor’s control levels. Periodically reviewing the SLA with the vendor can help monitor whether the vendor meets its contractual obligations and service standards, but it does not provide assurance of whether the vendor’s controls are adequate or sufficient. Conducting an unannounced vulnerability assessment of vendor’s IT systems can help identify any weaknesses or gaps in the vendor’s security controls, but it may violate the terms and conditions of the vendor-client relationship or cause operational disruptions. Obtaining evidence of the vendor’s CSA can provide some indication of whether the vendor’s controls are self-monitored and reported, but it does not verify whether the vendor’s controls are independent or accurate. References: CISA Review Manual (Digital Version), Chapter 5, Section 5.4

 IT governance is a framework that defines the roles, responsibilities, and processes for aligning IT strategy with business strategy. The board of directors of an organization is ultimately accountable for IT governance and has the authority to approve the IT strategy. The board of directors does not need to address technical IT issues, be informed of all IT initiatives, or have an IT strategy committee, as these tasks can be delegated to other stakeholders or committees within the organization.

The security architecture of an online application is a design that describes how various security components and controls are integrated and configured to protect the application from internal and external threats. When auditing the security architecture of an online application, an IS auditor should first review the location of the firewall within the network, as this determines how effectively the firewall can filter and monitor the traffic between different network segments and zones. The firewall standards, configuration, and firmware version are also important aspects to review, but they are secondary to the location of the firewall.

 Fine tuning the intrusion detection system (IDS) is the best recommendation to reduce the number of false positive alerts that overwhelm the log management system, because it can help adjust the sensitivity and accuracy of the IDS rules and signatures to match the network environment and traffic patterns. Establishing criteria for reviewing alerts, recruiting more monitoring personnel, and reducing thefirewall rules are not effective solutions to address theroot cause of the false positive alerts, but rather ways to cope with the consequences. References: CISA Review Manual (Digital Version), Chapter 5, Section5.4.3

 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.

The best test to provide assurance that a health care organization is handling patient data appropriately is compliance with local laws and regulations, as these are the primary sources of authority and obligation for data protection and privacy. Compliance with action plans, industry standards, or organizational policies and procedures are also important, but they may not cover all the legal requirements or reflect the currentbest practices for handling patient data. References: CISA Review Manual (Digital Version), Chapter 2, Section 2.3

The best document for an IS auditor to use in detecting a weakness in segregation of duties is a process flowchart. A process flowchart is a diagram that illustrates the sequence of steps, activities, tasks, or decisions involved in a business process. A process flowchart can help detect a weakness in segregation of duties by showing who performs what actions or roles in a process, and whether there is any overlap or conflict of interest among them. The other options are not as useful as a process flowchart in detecting a weakness in segregation of duties, as they do not show who performs what actions or roles in a process. A system flowchart is a diagram that illustrates the components, functions, interactions, or logic of an information system. A data flow diagram is a diagram that illustrates how data flows from sources to destinations through processes, stores, or external entities. An entity-relationship diagram is a diagram that illustrates how entities (such as tables) are related to each other through attributes (such as keys) in a database. References: CISA ReviewManual (Digital Version), Chapter 3, Section 3.2

 The first course of action when a data breach has occurred due to malware is to quarantine the impacted systems. This means isolating the infected systems from the rest of the network and preventing any further communication or data transfer with them. This can help contain the spread of the malware, limit the damage and exposure of sensitive data, and facilitate the investigation and remediation of the incident. Quarantining the impacted systems can also help preserve the evidence and logs that may be needed for forensic analysis or legal action.

 The first thing that an IS auditor should review when finding that transaction processing times in an order processing system have significantly increased after a major release is stress testing results. Stress testing is a type of testing that evaluates how a system performs under extreme or abnormal conditions, such as high volume, load, or concurrency of transactions. Stress testing results can help explain why transaction processing times in an order processing system have significantly increased after a major release by revealing any bottlenecks, limitations, or errors in the system’s capacity, performance, or functionality under stress. The other options are not as relevant as stress testing results in explaining why transaction processing times in an order processing system have significantly increased after a major release, as they do not directly measure how the systemperforms under extreme or abnormal conditions. Capacity management plan is a document that defines and implements the processes and activities for ensuring that the system has adequate resources and capabilities to meet current and future demands. Training plans are documents that define and implement the processes and activities for ensuring that the system users have adequate skills and knowledge to use the system effectively and efficiently. Database conversion results are outcomes or outputs of transforming data from one format or structure to another to suit the system’s requirements or specifications. References: CISA Review Manual (DigitalVersion), Chapter 3, Section 3.3

 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 way to determine whether a test of a disaster recovery plan (DRP) was successful is to analyze whether predetermined test objectives were met. Test objectives are specific, measurable, achievable, relevant, and time-bound (SMART) goals that define what the test aims to accomplish and how it will be evaluated. Test objectives should be aligned with the DRP objectives and scope, and should cover aspects such as recovery time objectives (RTOs), recovery point objectives (RPOs), critical business functions, roles and responsibilities, communication channels, backup systems, and contingency procedures. By comparing the actual test results with the expected test objectives, the IS auditor can measure the effectiveness and efficiency of the DRP and identify any gaps or weaknesses that need to be addressed. 

The best recommendation for an organization that is unable to add new servers on demand in a cost-efficient manner is to build a virtual environment. A virtual environment is a technology that allows multiple virtual machines to run on a single physical server, sharing its resources and capabilities. A virtual environment can help the organization add new servers on demand in a cost-efficient manner by reducing the need for hardware acquisition, maintenance, and power consumption. The other options are not as effective as building a virtual environment, as they do not address the root cause of the problem or provide the same benefits. Increasing the capacity of existing systems is a short-term solution that can help improve the performance and availability of the current servers, but it does not enable the organization to add new servers on demand in a cost-efficient manner. Upgrading hardware to newer technology is a costly solution that can help enhance the functionality and reliability of the servers, but it does not enable the organization to add new servers on demand in a cost-efficient manner. Hiring temporary contract workers for the IT function is an irrelevant solution that can help supplement the IT staff’s skills and knowledge, but it does not enable the organization to add new servers on demand in a cost-efficient manner. References: CISA Review Manual (Digital Version), Chapter 3, Section 3.3.1

The expected costs for recovering the business would be used when performing a business impact analysis (BIA). A BIA is a process of identifying and evaluating the potential effects ofdisruptions to critical business functions or processes. A BIA helps to determine the recovery priorities, strategies, and resources needed to resume normal operations after a disruption. One of the key outputs of a BIA is an estimate of the financial losses or costs associated with different types of disruptions, such as lost revenue, increased expenses, contractual penalties, or regulatory fines.

 An external assessment of network vulnerability is a process of identifying and evaluating the weaknesses and risks that affect the security and availability of a network froman outsider’s perspective. The most important factor to verify during this process is the completeness of network asset inventory, which is a list of all the devices, systems, and software that are connected to or part of the network. A complete and accurate network asset inventory can help identify the scope and boundaries of the network, the potential attack vectors and entry points, the critical assets and dependencies, and the existing security controls and gaps. Without a complete network asset inventory, an external assessment of network vulnerability may miss some important assets or vulnerabilities, leading to inaccurate or incomplete results and recommendations.

 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

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 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. 

 A weakness in change management is the most likely cause of an incorrect version of source code being amended by a development team. Change management is the process of controlling and documenting changes to IT systems and software. It ensures that changes are authorized, tested, and implemented in a controlled manner. If change management is weak, there is a risk of using outdated or incorrect versions of source code, which can lead to errors, defects, or security vulnerabilities in the software. 

 Substantive testing provides the most reliable audit evidence on the validity of transactions in a financial application. Substantive testing is an audit procedure that examines the financial statements and supporting documentation to see if they contain errors or misstatements. Substantive testing can help to verify that the transactions recorded in the financial applicationare authorized, complete, accurate, and properly classified. Substantive testing can include methods such as vouching, confirmation, analytical procedures, or physical examination. 

 Write access to production program libraries presents the greatest risk when granted to a new member of the system development staff. Production program libraries contain executable code that runs on live systems and supports critical business functions. Write access allows a user to modify or delete existing programs, or add new programs to the library. If a user were to make unauthorized or erroneous changes to production programs, it could cause serious disruptions, errors, or security breaches in the organization’s operations. Therefore, writeaccess to production program libraries should be restricted to authorized personnel only, and subject to strict change management controls. 

The primary benefit of using a dry-pipe fire-suppression system rather than a wet-pipe system is that a dry-pipe system has a decreased risk of leakage, as the pipes are filled with pressurized air or nitrogen instead of water until the system is activated. A wet-pipe system has a higher risk of leakage, corrosion, and freezing. A dry-pipe system is not more effective at suppressing flames, as it uses the same water-based suppressant as a wet-pipe system. A dry-pipe system does not allow more time to abort release of the suppressant, as it has a delay of only a few seconds before the water is released. A dry-pipe system does not disperse dry chemical suppressants exclusively, as it uses water as the primary suppressant. References: CISA Review Manual (Digital Version), Chapter 5, Section 5.2.3

 When auditing the closing stages of a system development project, the most important consideration should be the user acceptance test (UAT) results. The UAT is a critical phase of the system development life cycle (SDLC) that ensures that the system meets the functional requirements and expectations of the end users. The UAT results provide evidence of the system’s quality, performance, usability, and reliability. Control requirements, rollback procedures, and functional requirements documentation are also important considerations, but they are not ascrucial as the UAT results in determining if the system is ready for deployment. References: CISA Review Manual (Digital Version)1, page 325.

 The most important factor to consider when developing a service level agreement (SLA) is the description of the services from the viewpoint of the client organization, because the SLA shouldreflect the needs and expectations of the client and specify the measurable outcomes and performance indicators that the provider must deliver34. The description of the services from the viewpoint of the provider, the detailed identification of work to be completed, and the provisions for regulatory requirements that impact the end users’ businesses are also important elements of an SLA, but not as crucial as the client’sperspective. References: 3: CISA Review Manual (Digital Version), Chapter 5, Section 5.3.1 4: CISA Online Review Course, Module 5, Lesson 3

Comprehensive and Detailed in-Depth Explanation:

The primary role of KPIs is to provide measurable insights into the performance of business processes and identify variances that may require corrective actions. KPIs help organizations understand whether their processes are achieving desired outcomes and where improvements are needed.

While Option A discusses workflow optimization, it is a secondary benefit rather than the primary purpose. Options B and C do not accurately describe the core purpose of KPIs.

ISACA CISA Reference: Domain 1 - Information System Auditing Process

The primary reason for an IS audit manager to review the work performed by a senior IS auditor prior to presentation of a report is to ensure the conclusions are adequately supported. The IS audit manager is responsible for overseeing and supervising the audit process, ensuring the quality and consistency of the audit work, and approving the audit report and recommendations. The IS audit manager should review the work performed by the senior IS auditor to verify that the audit objectives, scope, and criteria have been met, that the audit evidence is sufficient, reliable, and relevant, and that the audit conclusions are logical, objective, and based on the audit evidence. The IS audit manager should also ensure that the audit report is clear, concise, accurate, and complete, and that it communicates the audit findings, conclusions, and recommendations effectively to the intended audience. The other options are not the primary reason for an IS audit manager to reviewthe work performed by a seniorIS auditor prior to presentation of a report, because they either relate to specific aspects or stages of the audit work rather than the overall outcome, or they are part of the senior IS auditor’s responsibility rather thanthe IS audit manager’s. References: CISA Review Manual (Digital Version)1, Chapter 2, Section 2.2.5

Performing user acceptance testing (UAT) is the most important activity before implementing a new system, as it ensures that the system meets the user requirements and expectations, and that it is free of major defects. Documenting last-minute enhancements, performing a pre-implementation audit, and ensuring that code has been reviewed are also important activities, but they arenot as critical as UAT. References: CISA Review Manual (Digital Version), Chapter 4, Section 4.2.2

 The finding that should be of greatest concern to an IS auditor assessing the effectiveness of an organization’s vulnerability scanning program is that results are not reported to individuals with authority to ensure resolution. This indicates a lack of accountability and communication for vulnerability management, which may result in unresolved or delayed remediation of identified vulnerabilities. This may expose the organization to increased risk of cyberattacks or breaches. The other findings are also concerning, but not as much as this one, because they may affect the completeness, accuracy or timeliness of the vulnerability scanning process, but not necessarily its effectiveness. References:

ISACA, CISA Review Manual, 27th Edition, chapter 4, section 4.41

ISACA, COBIT 2019 Framework: Introduction and Methodology, section 3.2

 A configuration management system is a process that establishes and maintains the consistency of a product’s attributes throughout its life cycle. It helps to identify and control the functional and physical characteristics of a product, and to record and report any changes to those characteristics. A configuration management system also supports the audit of the product to verify its conformance to requirements.

One of the key activities of a configuration management system is to define baselines for software. A baseline is a fixed reference point that serves as a basis for comparison and measurement. A baseline can be established for any configuration item, such as a requirement, a design document, a test plan, or a software component. A baseline helps to ensure that the software product meets its intended purpose and quality standards, and that any changes to the software are controlled and documented.

A configuration management system also supports other activities, such as tracking software updates, supporting the release procedure, and standardizing change approval, but these are not its primary purpose. Therefore, the other options are incorrect.

 The finding that should be of greatest concern to an IS auditor reviewing data conversion and migration during the implementation of a new application system is that unauthorized data modificationsoccurred during conversion. Data conversion and migration is a process that involves transferring data from one system to another, ensuring its accuracy, completeness, integrity, and usability. Unauthorized data modifications during conversion can result in data loss, corruption, inconsistency, or duplication, which can affect the functionality, performance, reliability, and security of the new system. Unauthorized data modifications can also have serious business implications, such as affecting decision making, reporting, compliance, customer service, and revenue. The IS auditor should verify that adequate controls are in place to prevent, detect, and correct unauthorized data modifications during conversion, such as access control, data validation, reconciliation, audit trail, and backup and recovery. The other findings (A, B and D) are less concerning, as they can be mitigated by documenting the change management process, restoring the backups of the old system and data from offline storage, or automating the data conversion process. References: CISA Review Manual (Digital Version), Chapter 3: Information Systems Acquisition, Development & Implementation, Section 3.4: System Implementation

 A web proxy server for corporate connections to external resources reduces organizational risk by anonymizing users through changed IP addresses. A web proxy server is an intermediarybetween the web and client devices, that can provide proxy services to a client or a group of clients1. One of the main benefits of using a web proxy server is that it allows users to change their IP address andlocation, circumventing geoblocking and hiding their identity from the target website2.

Anonymizing internal IP addresses is important for online security, as it helps protect the organization from several threats. If an attacker controls a server that employees connect to, the outgoing IP address of the organization’s router is logged on the server. This IP address can be used by the attacker to launch a denial-of-service (DoS) attack or to create more targeted attacks such as phishing2. With a web proxy server, the IP shown in web logs is the web proxy’s, which means an attacker would not have access to theorganization’s router outgoing IP address2.

Anonymizing outgoing IP addresses is also important when carrying out sensitive actions online, such as law enforcement investigations or competitive intelligence. A web proxy server can help users avoid exposing their internal IP address that leads back to their organization, and instead use a third-party web proxy that provides more anonymity2.

The other options are not directly related to reducing organizational risk by using a web proxy server. Providing multi-factor authentication for additional security (option B) is a benefit of some web proxy servers, but it is not the main purpose of using a web proxy server3. Providing faster response than direct access(option C) is a benefit of some web proxy servers that cache content forbetter data transfer speeds and less bandwidth usage, but it is not directly related to reducing organizational risk1. Load balancing traffic to optimize data pathways (option D) is a benefit of some web proxy servers that distribute traffic across multiple servers, but it is not directly related to reducing organizational risk4.

The answer B is correct because Software as a Service (SaaS) provider is the most efficient solution for a multi-location healthcare organization that wants to be able to access patient data wherever patients present themselves for care. SaaS is a cloud computing model that allows users to access software applications over the internet, without having to install, maintain, or update them on their own devices or servers. SaaS providers host and manage the software applications and the underlying infrastructure, and handle any issues such as security, availability, and performance.

SaaS can offer several benefits for a multi-location healthcare organization, such as:

Accessibility: SaaS applications can be accessed from any device and location that has an internet connection, which enables the healthcare organization to access patient data across different facilities and regions, and provide seamless and coordinated care to the patients.

Scalability: SaaS applications can scale up or down according to the demand and usage of the healthcare organization, which allows the organization to accommodate fluctuations in patient volume, data volume, or service requirements.

Cost-effectiveness: SaaS applications are usually offered on a subscription or pay-per-use basis, which reduces the upfront and ongoing costs of purchasing, installing, and maintaining software licenses, hardware, and IT staff.

Security: SaaS providers are responsible for ensuring the security and privacy of the software applications and the data they store, which can help the healthcare organization comply with the relevant regulations and standards, such as HIPAA (Health Insurance Portability and Accountability Act) or GDPR (General Data Protection Regulation).

Some examples of SaaS providers that offer solutions for healthcare organizations are:

Epic: Epic is a leading provider of electronic health record (EHR) systems that enable healthcare organizations to store, manage, and share patient data across different settingsand specialties. Epic also offers cloud-based solutions that allow healthcare organizations to access Epic’s software applications over the internet, without having to host them on their own servers.

Salesforce Health Cloud: Salesforce Health Cloud is a cloud-based platform that helps healthcare organizations connect with patients, providers, payers, and partners. Salesforce Health Cloud enables healthcare organizations to manage patient relationships, coordinate care teams, engage patients through personalized journeys, and leverage data and analytics to improve outcomes and efficiency.

DocuSign: DocuSign is a cloud-based platform that enables users to sign, send, and manage documents electronically. DocuSign can help healthcare organizations streamline workflows, reduce errors, and enhance compliance by automating the process of obtaining signatures for consent forms, contracts, prescriptions, referrals, and other documents.

The other options are not as efficient as option B. Infrastructure as a Service (IaaS) provider (option A) is a cloud computing model that provides users with access to computing resources such as servers, storage, network, and operating systems over the internet. IaaS can offer some benefits such as flexibility, scalability, and cost-effectiveness for a multi-location healthcare organization, but it also requires more technical expertise and management from the organization than SaaS. The organization would still need to install, configure, update, and secure the software applications that run on the IaaS infrastructure. Network segmentation (option C) is a technique that divides a network into smaller subnetworks based on criteria such as function, location, or security level. Network segmentation can improve the performance, security, and manageability of a network by reducing congestion, isolating threats, and enforcing policies. However, network segmentation alone does not enable a multi-location healthcare organization to access patient data wherever patients present themselves for care. The organization would still need a software solution that can store, manage, and share patient data across different segments of the network. Dynamic localization (option D) is a process that adapts the content and functionality of a software application to suit the preferences and needs of users in different locations or regions. Dynamic localization can enhance the user experience and satisfaction by providing relevant information in local languages, currencies, formats, and regulations. However, dynamic localization does not address the core issue of accessing patient data wherever patients present themselves for care. The organization would still need a software solution that can store, manage, and share patient data across different locations or regions.

 The type of control that is in place when an organization has established hiring policies and procedures designed specifically to ensure network administrators are well qualified is directive. Directive controls are those that guide or direct the actions of individuals or groups to achieve a desired outcome. Directive controls can also help to prevent or reduce the occurrence of undesirable events. Hiring policies and procedures are examples of directive controls that aim to ensure that only qualified and competent personnel are employed to perform IT-related tasks. References:

CISA Review Manual (Digital Version), Chapter 4, Section 4.11

CISA Online Review Course, Domain 1, Module 2, Lesson 12

The IS auditor’s best course of action is to evaluate the implemented control to ensure it mitigates the risk to an acceptable level. This is because the objective of a follow-up audit is to verify that corrective actions have been accomplished as scheduled and that theyare effective in preventing orminimizing future recurrence1. If senior management has implemented a different remediation action plan than what was previously agreed upon, the IS auditor should assess whether the alternative control is adequate and appropriate for the situation. Requesting justification from management for not implementing the recommended control (option D) may be a secondary step, but it is not the best course of action. Reporting the deviation by the control owner in the audit report (option A) may be premature and unnecessary if the implemented control is satisfactory. Canceling the follow-up audit and rescheduling for the next audit period (option C) is not advisable, as it would delay the verification of the effectiveness of the implemented control and potentially expose the organization to further risks. References: 1: Follow-up Audits - Canadian Audit and Accountability Foundation

The major advantage of automating internal controls is to efficiently test large volumes of data, because automated controls can perform repetitive tasks faster, more accurately, and more consistently than manual controls. Automated controls can also provide audit trails and exception reports that facilitate the monitoring and evaluationof the control effectiveness12. Reviewing large value transactions, identifying transactions with no segregation of duties, and performing analytical reviews are possible benefits of automating internal controls, but not the major advantage. References: 1: CISA Review Manual (Digital Version), Chapter 5, Section 5.2.2 2: CISA Online Review Course, Module 5, Lesson 2

The primary purpose of performing a parallel run of a new system is to validate the new system against its predecessor. A parallel run is a strategy for system changeover where a new system slowly assumes the roles of the older system while both systems operate simultaneously. This allows for comparison of the results and outputs of both systems to ensure that the new system is working correctly and reliably. A parallel run can also help identify and resolve any errors, discrepancies, or inconsistencies in the new system before the old system is discontinued.

The other options are not the primary purpose of performing a parallel run of a new system. A. To train the end users and supporting staff on the new system. Training is an important part of system implementation, but it is not the main reason for doing a parallel run. Training can be done before, during, or after the parallel run, depending on the needs and preferences of the organization. B. To verify the new system provides required business functionality. Verifying the business functionality of the new system is part of user acceptance testing (UAT), which is a formal and structured process of testing whether the new system meets the specifications and expectations of the users and stakeholders. UAT is usually done before the parallel run, as a prerequisite for system changeover. C. To reduce the need for additional testing. Reducing the need for additional testing is not the primary purpose of performing a parallel run, but rather a possible benefit or outcome of doing so. A parallel run can help ensure that the new system is thoroughly tested and validated in a real-worldenvironment, which may reduce the likelihood of encountering major issues or defects later on. However, additional testing may still be needed after the parallel run, depending on the feedback and evaluation of the users and stakeholders.

Due professional care is the obligation of an IS auditor to exercise the appropriate level of skill, competence, and diligence in performing an audit. It also requires the IS auditor to comply with the relevant standards, guidelines, and ethical principles of the profession. Completing an engagement by email only may compromise due professional care, as it may limit the IS auditor’s ability to obtain sufficient and appropriate evidence, to communicate effectively with the auditee and other stakeholders, and to perform adequate quality assurance and review procedures. The other options are not as relevant as due professional care, as they relate to specific aspects of an audit, such as proficiency (the knowledge and skills of the IS auditor), sufficient evidence (the quantity and quality of the audit evidence), and reporting (the presentation and communication of the audit results). References: CISA Review Manual (Digital Version), Domain 1: The Process of Auditing Information Systems, Section 1.2 ISACA IT Audit and Assurance Standards

An audit universe is a comprehensive list of all the auditable entities, processes, and activities within an organization. It helps the IS auditor to identify the scope, objectives, and priorities of the audit plan, as well as the resources and methodologies required to conduct the audits. An audit universe can also help the IS auditor to ensure that all the key risks, controls, and regulations are covered by the audit plan, and that there are no gaps or overlaps in the audit coverage.

The first activity that the IS auditor should perform when preparing a plan for audits to be carried out over a specified period is to determine the audit universe. This involves defining the criteria and methods for identifying and categorizing the auditable units, such as by business function, process, system, location, or risk level. The IS auditor should also consult with the management and otherstakeholders to obtain their input and expectations for the audit plan. The IS auditor should then document and validate the audit universe, and update it regularly to reflect any changes in the organization’s structure, operations, or environment.

The other three activities are also important for preparing an audit plan, but they should be performed after determining the audit universe. Allocating audit resources involves assigning staff, time, budget, and tools to each audit based on their complexity, priority, and availability. Prioritizing risks involves assessing the likelihood and impact of each risk associated with each auditable unit, and ranking them according to their significance and urgency. Reviewing prior audit reports involves analyzing the findings, recommendations, and actions from previous audits related to each auditable unit, and evaluating their current status and relevance.

Therefore, determining the audit universe is the best answer.

Substantive testing is the most important type of testing during software license audits, as it provides evidence of the accuracy and completeness of the software inventory and licensing records. Substantive testing involves examiningtransactions, balances, and other data to verify their validity, existence, accuracy, and valuation. Compliance testing, on the other hand, is more focused on assessing the adequacy and effectiveness of internal controls over software licensing, such as policies, procedures,and monitoring mechanisms. Compliance testing alone cannot provide sufficient assurance that the software license audit objectives are met, as itdoes notverify the actual software usage and compliance status. Judgmental sampling and stop-or-go sampling are methods of selecting samples for testing, not types of testing themselves. *References: According to the ISACA IT Audit and Assurance Standards, Guidelines and Tools and Techniques for IS Audit and Assurance Professionals, section 1206 Testing, “The IS audit and assurance professional should perform sufficient testing to obtain sufficient appropriate evidence to support conclusions reached.” 1 The section also defines substantive testing as “testing performed to obtain audit evidence to detect material misstatements in transactions orbalances” and compliance testing as “testing performed to obtain audit evidence on theoperating effectiveness of controls.” 1 According to the ISACA IT Audit and Assurance Guideline G15 Software License Management, “The objective of a software license auditis to provide management with an independent assessment relating to compliance with software license agreements.” 2 The guideline also states that “substantive tests should be performed on a sample basis to verify that all software installed on devices within scope has been appropriately licensed.” 2

The greatest concern to an IS auditor who is assessing an organization’s configuration and release management process is that changes and change approvals are not documented. This is because documentation is essential for ensuring the traceability, accountability, and quality of the changes made to the configuration items (CIs) and the releases deployed to the production environment. Without documentation, it would be difficult to verify the authenticity, validity, and authorization of the changes, as well as to identify and resolve any issues or incidents that may arise from the changes. Documentation also helps to maintain compliance with internal and external standards and regulations, as well as to facilitate audits and reviews.

The other options are not as concerning as option B, although they may also indicate some weaknesses in the configuration and release management process. The organization does not use an industry-recognized methodology, but this does not necessarily mean that their process is ineffective or inefficient. The organization may have developed their own methodology that suits their specific needs and context. However, using an industry-recognized methodology could help them adopt best practices and improve their process maturity. All changes require middle and senior management approval, but this may not be a problem if the organization has a clear and streamlined approval process that does not cause delays or bottlenecks in the change implementation. However, requiring too many approvals could also introduce unnecessary complexity and bureaucracy in the process. There is no centralized configuration management database (CMDB), but this does not mean that the organization does not have a way of managing their CIs and their relationships. The organization may use other tools or methods to store and access their configuration data, such as spreadsheets, documents, or repositories. However, having a centralized CMDB could help them improve their visibility, accuracy, and consistency of their configuration data.

The answer B is correct because a system-generated list of staff and their project assignments, roles, and responsibilities is the most useful to an IS auditor performing a review of access controls for a document management system. A document management system is a software that helps organizations store, manage, and share documents electronically. Access controls are the mechanisms that restrict or allow access to the documents based on predefined criteria, such as user identity, role, or project. An IS auditor needs to verify that the access controls are properly configured and implemented to ensure the security, confidentiality, and integrity of the documents.

A system-generated list of staff and their project assignments, roles, and responsibilities can help the IS auditor to perform the following tasks:

Identify the users who have access to the document management system and their level of access (e.g., read-only, edit, delete, etc.).

Compare the actual access rights of the users with their expected or authorized access rights based on their roles and responsibilities.

Detect any anomalies, discrepancies, or violations in the access rights of the users, such as excessive or unauthorized access, segregation of duties conflicts, or dormant or inactive accounts.

Evaluate the effectiveness and efficiency of the access control policies and procedures, such as user provisioning, deprovisioning, authentication, authorization, auditing, etc.

The other options are not as useful as option B. Policies and procedures for managing documents provided by department heads (option A) are not reliable sources of information for an IS auditor because they may not reflect the actual practices or compliance status of the document management system. Previous audit reports related to other departments’ use of the same system (option C) are not relevant for an IS auditor because they may not address the specific issues or risks associatedwith the current department’s use of the document management system. Information provided by the audit team lead on the authentication systems used by the department (option D) is not sufficient for an IS auditor because authentication is only one aspect of access control and it does not provide information on the authorization or auditing of the document access.

The primary purpose of requiring source code escrow in a contractual agreement is to ensure the source code is available. Source code escrow is a service that involves depositing the source code of a software or system with a third-party agent or escrow provider, who can release it to a designated beneficiary under specific conditions, such as bankruptcy, termination, or breach of contract by the software vendor or developer. Source code escrow can help to protect the interests and rights of the software user or licensee, who may need access to the source code for maintenance, modification, enhancement, or troubleshooting purposes. The IS auditor should verify that the contractual agreement specifies the terms and conditions for source code escrow, such as the escrow agent,the escrow fees, the deposit frequency and format,the release events and procedures, and the verification and audit requirements. References: CISA ReviewManual (Digital Version)1, Chapter 3, Section 3.2.2