Certified Public Accountant Technology & Digital Applications 3

Question 1

A CPA performing IT audit procedures identifies that database administrators have both read and write access to the general ledger tables. This MOST likely represents a violation of which control principle?

Accepted Answer

Separation of duties

Answer

Granting DBAs unrestricted access to the general ledger violates separation of duties because they could alter financial records without independent oversight.

Question 2

Which encryption standard is currently recommended by NIST for protecting highly sensitive financial data?

Accepted Answer

AES-256

Answer

AES-256 (Advanced Encryption Standard with 256-bit keys) is the current NIST-recommended standard for protecting sensitive data and is considered computationally infeasible to brute-force.

Question 3

When evaluating a SaaS vendor's controls, a CPA should FIRST request which document?

Accepted Answer

A SOC 1 Type II or SOC 2 Type II report

Answer

A Type II SOC report provides independent assurance over the design AND operating effectiveness of controls over a period of time, which is essential for evaluating a SaaS vendor.

Question 4

A company's IT disaster recovery plan specifies a Recovery Time Objective (RTO) of 4 hours. What does this mean?

Accepted Answer

Systems must be restored and operational within 4 hours of a disruption

Answer

RTO is the maximum acceptable time for restoring a system or process after a disruption before the impact becomes unacceptable.

Question 5

In the context of IT controls, 'change management' procedures PRIMARILY exist to ensure that:

Accepted Answer

System modifications are authorized, tested, and documented before implementation

Answer

Change management controls govern the process of modifying IT systems to prevent unauthorized changes, ensure testing, and maintain a complete audit trail of modifications.

Certified Public Accountant Practice Test

Certified Public Accountant Practice Test

Certified Public Accountant Technology & Digital Applications 3