IIA-CIA-Part3 Premium Exam Questions

Cloud-based applications accessible outside the VPN perimeter increase the possibility of data leakage through unapproved or unsecured applications (shadow IT). Even with multi-factor authentication, risks remain around the use of personal devices and uncontrolled storage or sharing.

Option B is incorrect because VPNs are generally secure if configured correctly. Option C is misleading, as remote access controls can be effective in cloud solutions when properly designed. Option D (employees accessing emails after hours) is not a risk related to security but rather a work-life balance issue.

Thus, the key risk is potential leakage of organizational data via unapproved or uncontrolled applications (Option A).

A core feature of blockchain technology is immutability—once data is recorded, it cannot be altered or deleted. While this supports integrity and transparency, it also creates a conflict with data privacy regulations such as the General Data Protection Regulation (GDPR), which grants individuals the “right to be forgotten.” The inability to erase personal data stored on blockchain creates a compliance challenge.

Options A and B are incorrect: phishing is not inherent to blockchain, and transactions are not easily tampered with (immutability actually prevents that). Option C is misleading because regulations address data use but do not “overregulate” blockchain specifically.

When an organization integrates governance, risk, and compliance (GRC) activities into a centralized technology-based resource, enterprise governance must ensure that the system:

Supports strategic decision-making by the board and senior management.

Provides accurate, reliable, and quality information to demonstrate an effective governance framework.

Aligns with IIA Standard 2110 – Governance, which requires auditors to assess whether the organization’s governance structure supports accountability, transparency, and effective decision-making.

(A) The board should be fully satisfied that there is an effective system of governance in place through accurate, quality information provided. (Correct Answer)

Governance is about ensuring that stakeholders, particularly the board, have confidence in the organization's control environment and decision-making process.

IIA Standard 2110 (Governance) states that internal auditors must evaluate the adequacy and effectiveness of governance structures.

A GRC system should ensure transparency, accountability, and quality reporting to enable strategic governance oversight.

(B) Compliance, audit, and risk management can find and seek efficiencies between their functions through integrated information reporting.

While improving efficiency is a benefit of a GRC system, it is a secondary objective, not a primary enterprise governance concern.

(C) Key compliance and risk metrics can be tracked and compared throughout the enterprise, aiding in identifying problem departments.

Tracking risk metrics is useful but does not directly address governance at the board level, making this answer incomplete.

(D) Data analytics can be utilized for trending of the data to ensure that patterns and ongoing monitoring occurs throughout the organization.

Analytics support monitoring, but the core governance concern is ensuring the board’s confidence in the system.

IIA Standard 2110 – Governance: Internal auditors must assess whether governance processes are effective.

GTAG 1 – Information Technology Risks and Controls: IT governance must provide quality, reliable information for decision-making.

COSO ERM Framework: Emphasizes governance as a key driver of enterprise risk management.

Analysis of Each Option:IIA References Supporting the Answer:Thus, the correct answer is (A) because effective enterprise governance relies on accurate and high-quality information for strategic decision-making.

The most recent backup is primarily used to restore lost data in the event of a system failure, data corruption, or cyberattack. If a data center failure occurs, the latest backup is the best source to recover the human resources database and resume operations.

(A) Incorrect – An incorrect program fix was implemented just prior to the database backup.

If an incorrect fix was applied before the backup, restoring the latest backup would still contain the error.

The organization would need to restore an earlier version before the faulty update.

(B) Incorrect – The organization is preparing to train all employees on the new self-service benefits system.

The latest backup is not needed for training; the live system or historical data would be used instead.

(C) Correct – There was a data center failure that requires restoring the system at the backup site.

In the event of a system failure, restoring from the most recent backup minimizes data loss and downtime.

This is the primary reason for maintaining regular backups.

(D) Incorrect – There is a need to access prior year-end training reports for all employees in the human resources database.

Historical records would likely be stored in archived backups or reports, not the latest backup.

The most recent backup contains current data, not old reports.

IIA’s GTAG (Global Technology Audit Guide) – IT Disaster Recovery and Backup Strategies

Covers the importance of backups in system restoration.

NIST Cybersecurity Framework – Data Recovery and Business Continuity

Recommends frequent backups to protect against system failures.

ISO 22301 – Business Continuity Management

Defines recovery procedures and best practices for backup site restoration.

Analysis of Answer Choices:IIA References and Internal Auditing Standards: