- (Topic 4)
An organization is planning to implement a work-from-home policy that allows users to work remotely as needed. Which of the following is the BEST solution for ensuring secure remote access to corporate resources?

1. A. Additional firewall rules
2. B. Multi-factor authentication
3. C. Virtual private network (VPN)
4. D. Virtual desktop

Correct Answer: C
The best solution for ensuring secure remote access to corporate resources is to use a virtual private network (VPN), as this creates an encrypted tunnel between the user’s device and the corporate network, preventing unauthorized interception or modification of data in transit. Additional firewall rules may help to restrict access to certain ports or protocols, but they do not provide encryption or authentication. Multi-factor authentication may help to verify the identity of the user, but it does not protect the data in transit. Virtual desktop may help to provide a consistent user interface and access to applications, but it does not ensure the security of the communication channel. References: CISA Review Manual (Digital Version), Chapter 5: Protection of Information Assets, Section 5.2: Network Security Devices and Technologies

- (Topic 4)
An IS auditor is reviewing a client's outsourced payroll system to assess whether the financial audit team can rely on the application. Which of the following findings would be the auditor's GREATEST concern?

1. A. User access rights have not been periodically reviewed by the client.
2. B. Payroll processing costs have not been included in the IT budget.
3. C. The third-party contract has not been reviewed by the legal department.
4. D. The third-party contract does not comply with the vendor management policy.

Correct Answer: C
The third-party contract has not been reviewed by the legal department is the auditor’s greatest concern because it poses a significant legal and financial risk to the client. A third-party contract is a legally binding agreement between the client and the outsourced payroll provider that defines the scope, terms, and conditions of the service. A third-party contract should be reviewed by the legal department to ensure that it complies with the applicable laws and regulations, protects the client’s interests and rights, and specifies the roles and responsibilities of both parties. A third-party contract that has not been reviewed by the legal department may contain clauses that are unfavorable, ambiguous, or contradictory to the client, such as:
✑ Inadequate or unclear service level agreements (SLAs) that do not specify the quality, timeliness, and accuracy of the payroll service.
✑ Insufficient or vague security and confidentiality provisions that do not safeguard the client’s data and information from unauthorized access, use, disclosure, or loss.
✑ Unreasonable or excessive fees, penalties, or liabilities that may impose an undue financial burden on the client.
✑ Limited or no audit rights that may prevent the client from verifying the effectiveness and compliance of the payroll provider’s internal controls.
✑ Inflexible or restrictive termination clauses that may limit the client’s ability to cancel or switch to another payroll provider.
A third-party contract that has not been reviewed by the legal department may expose the client to various risks, such as:
✑ Legal disputes or litigation with the payroll provider over contractual breaches or
performance issues.
✑ Regulatory fines or sanctions for noncompliance with tax, labor, or other laws and regulations related to payroll.
✑ Financial losses or damages due to errors, fraud, or negligence by the payroll provider.
✑ Reputation damage or customer dissatisfaction due to payroll errors or delays. Therefore, an IS auditor should be highly concerned about a third-party contract that has not been reviewed by the legal department and recommend that the client seek legal advice before signing or renewing any contract with an outsourced payroll provider.
User access rights have not been periodically reviewed by the client is a moderate concern because it may indicate a lack of proper access control over the payroll system. User access rights are the permissions granted to users to access, view, modify, or delete data and information in the payroll system. User access rights should be periodically reviewed by the client to ensure that they are aligned with the user’s roles and responsibilities, and that they are revoked or modified when a user changes roles or leaves the organization. User access rights that are not periodically reviewed by the client may result in unauthorized or inappropriate access to payroll data and information, which may compromise its confidentiality, integrity, and availability.
Payroll processing costs have not been included in the IT budget is a minor concern because it may indicate a lack of proper planning and allocation of IT resources for payroll processing. Payroll processing costs are the expenses incurred by the client for using an outsourced payroll service, such as fees, charges, taxes, or penalties. Payroll processing costs should be included in the IT budget to ensure that they are adequately estimated, monitored, and controlled. Payroll processing costs that are not included in the IT budget may result in unexpected or excessive costs for payroll processing, which may affect the client’s profitability and cash flow.
The third-party contract does not comply with the vendor management policy is a low concern because it may indicate a lack of alignment between the client’s vendor management policy and its actual vendor selection and evaluation process. A vendor management policy is a set of guidelines and procedures that governs how the client manages its relationship with its vendors, such as how to select, monitor, evaluate, and terminate vendors. A vendor management policy should be consistent with the client’s business objectives, risk appetite, and regulatory requirements. A third-party contract that does not comply with the vendor management policy may result in suboptimal vendor performance or service quality, but it does not necessarily imply a breach of contract or a violation of law.

- (Topic 4)
Which of the following is the MOST effective way to detect as many abnormalities as possible during an IS audit?

1. A. Conduct a walk-through of the process.
2. B. Perform substantive testing on sampled records.
3. C. Perform judgmental sampling of key processes.
4. D. Use a data analytics tool to identify trends.

Correct Answer: D
A data analytics tool is the most effective way to detect as many abnormalities as possible during an IS audit, as it can process large volumes of data, perform complex calculations, and generate visualizations that reveal patterns, outliers, anomalies, or deviations from expected results. A data analytics tool can also help the auditor to test the entire population of data, rather than a sample, and to perform continuous auditing and monitoring. References
ISACA CISA Review Manual, 27th Edition, page 256
What is Problem Solving? Steps, Process & Techniques | ASQ Data Analytics for Auditors - IIA

- (Topic 1)
The PRIMARY advantage of object-oriented technology is enhanced:

1. A. efficiency due to the re-use of elements of logic.
2. B. management of sequential program execution for data access.
3. C. grouping of objects into methods for data access.
4. D. management of a restricted variety of data types for a data object.

Correct Answer: A
The primary advantage of object-oriented technology is enhanced efficiency due to the re-use of elements of logic. Object-oriented technology is a software design model that uses objects, which contain both data and code, to create modular and reusable programs. Objects can be inherited from other objects, which reduces duplication and improves maintainability. Grouping objects into methods for data access, managing sequential program execution for data access, and managing a restricted variety of data
types for a data object are not advantages of object-oriented technology. References: ISACA CISA Review Manual 27th Edition, page 304

- (Topic 3)
During an IT general controls audit of a high-risk area where both internal and external audit teams are reviewing the same approach to optimize resources?

1. A. Leverage the work performed by external audit for the internal audit testing.
2. B. Ensure both the internal and external auditors perform the work simultaneously.
3. C. Request that the external audit team leverage the internal audit work.
4. D. Roll forward the general controls audit to the subsequent audit year.

Correct Answer: A
The best approach to optimize resources when both internal and external audit teams are reviewing the same IT general controls area is to leverage the work performed by external audit for the internal audit testing. This can avoid duplication of efforts, reduce audit costs and enhance coordination between the audit teams. The internal audit team should evaluate the quality and reliability of the external audit work before relying on it. Ensuring both the internal and external auditors perform the work simultaneously is not an efficient use of resources, as it would create redundancy and possible interference. Requesting that the external audit team leverage the internal audit work may not be feasible or acceptable, as the external audit team may have different objectives, standards and independence requirements. Rolling forward the general controls audit to the subsequent audit year is not a good practice, as it would delay the identification and remediation of any control weaknesses in a high-risk area. References: ISACA, CISA Review Manual, 27th Edition, 2018, page 247