Which of the given sampling method is most useful to an auditor when testing for compliance?

The latest ISACA CISA (Certified Information Systems Auditor) certification actual real practice exam question and answer (Q&A) dumps are available free, which are helpful for you to pass the ISACA CISA exam and earn ISACA CISA certification.

CISA Question 971

Question

Which of the following is the MOST likely reason why e-mail systems have become a useful source of evidence for litigation?

A. Multiple cycles of backup files remain available.
B. Access controls establish accountability for e-mail activity.
C. Data classification regulates what information should be communicated via e-mail.
D. Within the enterprise, a clear policy for using e-mail ensures that evidence is available.

Answer

A. Multiple cycles of backup files remain available.

Explanation

Backup files containing documents that supposedly have been deleted could be recovered from these files. Access controls may help establish accountability for the issuance of a particular document, but this does not provide evidence of the e-mail. Data classification standards may be in place with regards to what should be communicated via e-mail, but the creation of the policy does not provide the information required for litigation purposes.

CISA Question 972

Question

Which of the following sampling methods is MOST useful when testing for compliance?

A. Attribute sampling
B. Variable sampling
C. Stratified mean per unit
D. Difference estimation

Answer

A. Attribute sampling

Explanation

Attribute sampling is the primary sampling method used for compliance testing. Attribute sampling is a sampling model that is used to estimate the rate of occurrence of a specific quality (attribute) in a population and is used in compliance testing to confirm whether the quality exists. The other choices are used in substantive testing, which involves testing of details or quantity.

CISA Question 973

Question

The MAJOR advantage of the risk assessment approach over the baseline approach to information security management is that it ensures:

A. information assets are overprotected.
B. a basic level of protection is applied regardless of asset value.
C. appropriate levels of protection are applied to information assets.
D. an equal proportion of resources are devoted to protecting all information assets.

Answer

C. appropriate levels of protection are applied to information assets.

Explanation

Full risk assessment determines the level of protection most appropriate to a given level of risk, while the baseline approach merely applies a standard set of protection regardless of risk. There is a cost advantage in not overprotecting information. However, an even bigger advantage is making sure that no information assets are over- or under protected. The risk assessment approach will ensure an appropriate level of protection is applied, commensurate with the level of risk and asset value and, therefore, considering asset value. The baseline approach does not allow more resources to be directed toward the assets at greater risk, rather than equally directing resources to all assets.

CISA Question 974

Question

An audit charter should:

A. be dynamic and change often to coincide with the changing nature of technology and the audit profession.
B. clearly state audit objectives for, and the delegation of, authority to the maintenance and review of internal controls.
C. document the audit procedures designed to achieve the planned audit objectives.
D. outline the overall authority, scope and responsibilities of the audit function.

Answer

D. outline the overall authority, scope and responsibilities of the audit function.

Explanation

An audit charter should state management’s objectives for and delegation of authority to IS audit. This charter should not significantly change over time and should be approved at the highest level of management. An audit charter would not be at a detailed level and, therefore, would not include specific audit objectives or procedures.

CISA Question 975

Question

Which of the following is a benefit of a risk-based approach to audit planning? Audit:

A. scheduling may be performed months in advance.
B. budgets are more likely to be met by the IS audit staff.
C. staff will be exposed to a variety of technologies.
D. resources are allocated to the areas of highest concern

Answer

D. resources are allocated to the areas of highest concern

Explanation

The risk-based approach is designed to ensure audit time is spent on the areas of highest risk. The development of an audit schedule is not addressed by a risk- based approach. Audit schedules may be prepared months in advance using various scheduling methods. A risk approach does not have a direct correlation to the audit staff meeting time budgets on a particular audit, nor does it necessarily mean a wider variety of audits will be performed in a given year.

CISA Question 976

Question

Which of the following is a substantive test?

A. Checking a list of exception reports
B. Ensuring approval for parameter changes
C. Using a statistical sample to inventory the tape library
D. Reviewing password history reports

Answer

C. Using a statistical sample to inventory the tape library

Explanation

A substantive test confirms the integrity of actual processing. A substantive test would determine if the tape library records are stated correctly. A compliance test determines if controls are being applied in a manner that is consistent with management policies and procedures.
Checking the authorization of exception reports, reviewing authorization for changing parameters and reviewing password history reports are all compliance tests.

CISA Question 977

Question

Overall business risk for a particular threat can be expressed as:

A. a product of the probability and magnitude of the impact if a threat successfully exploits a vulnerability.
B. the magnitude of the impact should a threat source successfully exploit the vulnerability.
C. the likelihood of a given threat source exploiting a given vulnerability.
D. the collective judgment of the risk assessment team.

Answer

A. a product of the probability and magnitude of the impact if a threat successfully exploits a vulnerability.

Explanation

Choice A takes into consideration the likelihood and magnitude of the impact and provides the best measure of the risk to an asset. Choice B provides only the likelihood of a threat exploiting a vulnerability in the asset but does not provide the magnitude of the possible damage to the asset. Similarly, choice C considers only the magnitude of the damage and not the possibility of a threat exploiting a vulnerability. Choice D defines the risk on an arbitrary basis and is not suitable for a scientific risk management process.

CISA Question 978

Question

The decisions and actions of an IS auditor are MOST likely to affect which of the following risks?

A. Inherent
B. Detection
C. Control
D. Business

Answer

B. Detection

Explanation

Detection risks are directly affected by the auditor’s selection of audit procedures and techniques. Inherent risks are not usually affected by an IS auditor. Control risks are controlled by the actions of the company’s management. Business risks are not affected by an IS auditor.

CISA Question 979

Question

An IS auditor is reviewing access to an application to determine whether the 10 most recent `new user` forms were correctly authorized. This is an
example of:

A. variable sampling.
B. substantive testing.
C. compliance testing.
D. stop-or-go sampling.

Answer

C. compliance testing.

Explanation

Compliance testing determines whether controls are being applied in compliance with policy. This includes tests to determine whether new accounts were appropriately authorized. Variable sampling is used to estimate numerical values, such as dollar values. Substantive testing substantiates the integrity of actual processing; such as balances on financial statements. The development of substantive tests is often dependent on the outcome of compliance tests. If compliance tests indicate that there are adequate internal controls, then substantive tests can be minimized. Stop-or-go sampling allows a test to be stopped as early as possible and is not appropriate for checking whether procedures have been followed.

CISA Question 980

Question

An IS auditor is using a statistical sample to inventory the tape library. What type of test would this be considered?

A. Substantive
B. Compliance
C. Integrated
D. Continuous audit

Answer

A. Substantive

Explanation

Using a statistical sample to inventory the tape library is an example of a substantive test.