An IS auditor is reviewing the risk management process. Which of the following is the MOST important consideration during this review?
A. Controls are implemented based on cost-benefit analysis.
B. The risk management framework is based on global standards.
C. The approval process for risk response is in place.
D. IT risk is presented in business terms.
- 1 Answers
- 6872 Views
- I also Faced
- E-Mail Answers
The correct answer is D.
A. Controls to mitigate risk must be implemented based on cost-benefit analysis; however, the cost-benefit analysis is effective only if risk is presented in business terms.
B. A risk management framework based on global standards helps in ensuring completeness; however, organizations must adapt it to suit specific business requirements.
C. Approvals for risk response come later in the process.
D. In order for risk management to be effective, it is necessary to align IT risk with business objectives. This can be done by adopting acceptable terminology that is understood by all, and the best way to achieve this is to present IT risk in business terms.
| Is This Answer Correct ? | 5 Yes | 0 No |
To prevent an organization's computer systems from becoming part of a distributed denial-of-service attack, IP packets containing addresses that are listed as unroutable can be isolated by: A. establishing outbound traffic filtering. B. enabling broadcast blocking. C. limiting allowable services. D. network performance monitoring.
In a system development project the purpose of the program and procedure development phase is to: A. prepare, test and document all programs and manual procedures. B. document a business or system problem to a level at which management can select a solution. C. prepare a high-level design of a proposed system solution and present reasons for adopting a solution. D. expand the general design of an approved solution so that program and procedure writing can begin.
The objective of IT governance is to ensure that the IT strategy is aligned with the objectives of (the): A. enterprise. B. IT. C. audit. D. finance.
Utilizing audit software to compare the object code of two programs is an audit technique used to test program: A. logic. B. changes. C. efficiency. D. computations.
The PRIMARY advantage of a continuous audit approach is that it: A. does not require an IS auditor to collect evidence on system reliability while processing is taking place. B. requires the IS auditor to review and follow up immediately on all information collected. C. can improve system security when used in time-sharing environments that process a large number of transactions. D. does not depend on the complexity of an organization's computer systems.
Which of the following would be the BEST population to take a sample from when testing program changes? A. Test library listings B. Source program listings C. Program change requests D. Production library listings
A team conducting a risk analysis is having difficulty projecting the financial losses that could result from a risk. To evaluate the potential losses the team should: A. compute the amortization of the related assets. B. calculate a return on investment (ROI). C. apply a qualitative approach. D. spend the time needed to define exactly the loss amount.
Which of the following business recovery strategies would require the least expenditure of funds? A. Warm site facility B. Empty shell facility C. Hot site subscription D. Reciprocal agreement
An IS auditor performing a review of the EFT operations of a retailing company would verify that the customers credit limit is checked before funds are transferred by reviewing the EFT: A. system's interface. B. switch facility. C. personal identification number generating procedure. D. operation backup procedures.
The use of statistical sampling procedures helps minimize: A. sampling risk. B. detection risk. C. inherent risk. D. control risk.
A number of system failures are occurring when corrections to previously detected errors are resubmitted for acceptance testing. This would indicate that the maintenance team is probably not adequately performing which of the following types of testing? A. Unit testing B. Integration testing C. Design walk-throughs D. Configuration management
Which of the following is the FIRST thing an IS auditor should do after the discovery of a trojan horse program in a computer system? A. Investigate the author. B. Remove any underlying threats. C. Establish compensating controls. D. Have the offending code removed.
Cisco Certifications 
