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Which of the following best describes a detective control designed to protect an organization from cyberthreats and attacks?
A detective control is a security measure that identifies and alerts an organization to potential cyberthreats after they occur but before they cause harm. Detective controls do not prevent attacks but help detect them in a timely manner.
Why Option B (Monitoring for vulnerabilities based on industry intelligence) is Correct:
Continuous monitoring for vulnerabilities helps detect emerging threats, security breaches, and weaknesses in IT systems.
Uses threat intelligence feeds, security information and event management (SIEM) systems, and intrusion detection systems (IDS).
Helps organizations respond quickly to cyberattacks by identifying patterns, suspicious activity, or known vulnerabilities.
Why Other Options Are Incorrect:
Option A (A list of trustworthy, good traffic and a list of unauthorized, blocked traffic):
Incorrect because this describes a whitelisting/blacklisting technique, which is a preventive control, not a detective control.
Option C (Comprehensive service level agreements with vendors):
Incorrect because service level agreements (SLAs) ensure contractual obligations, but do not detect security threats.
Option D (Firewall and other network perimeter protection tools):
Incorrect because firewalls are preventive controls, designed to block unauthorized access, not detect threats after they occur.
IIA GTAG -- 'Auditing Cybersecurity Risks': Discusses detective controls such as vulnerability monitoring and threat intelligence.
COBIT 2019 -- DSS05 (Manage Security Services): Recommends continuous monitoring for cyber threats as a detective control.
NIST Cybersecurity Framework -- Detect Function: Highlights vulnerability management and threat monitoring as key detective measures.
IIA Reference:Thus, the correct answer is B. Monitoring for vulnerabilities based on industry intelligence.
An internal auditor observed that the organization's disaster recovery solution will make use of a cold site in a town several miles away. Which of the following is likely to be a characteristic of this disaster recovery solution?
Comprehensive and Detailed In-Depth
A cold site is a disaster recovery location that provides only basic infrastructure (e.g., power, cooling, and space) but does not have pre-installed IT systems. Organizations must procure and install servers before recovery can begin.
Option A (Real-time data synchronization) applies to hot sites, which maintain fully operational backup systems.
Option B (Recovery time under one week) is more characteristic of warm or hot sites, as cold sites require longer setup times.
Option D (Defined recovery processes) applies to all disaster recovery plans and does not differentiate cold sites.
Since a cold site lacks pre-installed servers, Option C is the correct answer.
Which of the following accounting methods is an investor organization likely to use when buying 40 percent of the stock of another organization?
The equity method is used when an investor owns between 20% and 50% of another company's stock, indicating significant influence over the investee. Since the investor organization is purchasing 40% of the stock, it qualifies for this method.
(A) Cost method.
Incorrect: The cost method is used when the investor has less than 20% ownership and no significant influence.
(B) Equity method. (Correct Answer)
The equity method is required when the investor has significant influence over the investee (typically between 20% and 50% ownership).
Under this method, the investor records a proportional share of the investee's profits and losses in its financial statements.
IIA Standard 2330 -- Documenting Information recommends accurate financial reporting and appropriate accounting method selection.
(C) Consolidation method.
Incorrect: The consolidation method is used when the investor owns more than 50% of the stock, granting control over the investee.
(D) Fair value method.
Incorrect: The fair value method applies when investments are traded in active markets and do not grant significant influence.
IIA Standard 2330 -- Documenting Information: Requires appropriate classification of financial investments.
GAAP & IFRS Accounting Standards: Mandate the equity method for ownership between 20% and 50% with significant influence.
Analysis of Each Option:IIA Reference Supporting the Answer:Thus, the correct answer is (B) Equity method, as 40% ownership implies significant influence, requiring the use of this method.
A holding company set up a centralized group technology department, using a local area network with a mainframe computer to process accounting information for all companies within the group. An internal auditor would expect to find all of the following controls within the technology department except:
In a centralized technology department, the auditor would expect controls over segregation of duties, continuity planning, maintenance agreements, and prevention or detection of unauthorized data file changes. These controls directly protect centralized processing and accounting information. Documented procedures for remote job entry and local data file retention are less likely to be controls within the centralized technology department because remote job entry and local retention relate more to user departments or local entities submitting data. Internal audit should distinguish central IT controls from local user controls. Centralized technology environments require strong access controls, file security, change management, backup, disaster recovery, and operational monitoring. The exception is Option B because it is not typically a centralized technology department control.
Which of the following characteristics applies to an organization that adopts a flat structure?
A flat organizational structure is characterized by fewer hierarchical levels and wider spans of control, meaning that managers oversee a larger number of employees directly.
Definition of a Flat Structure:
A flat structure reduces middle management layers, promoting direct communication between top executives and employees.
According to IIA's Organizational Governance Guidelines, organizations with a flat structure empower employees and reduce bureaucratic delays.
Key Characteristics of a Flat Structure:
Wide Span of Control: Managers oversee more employees due to fewer hierarchical levels.
Faster Decision-Making: Less bureaucracy allows for quicker responses.
Greater Employee Autonomy: Employees have more decision-making responsibilities.
Why Not Other Options?
A . The structure is dispersed geographically:
A geographically dispersed organization is not necessarily flat; it could be hierarchical or matrix-based.
B . The hierarchy levels are more numerous:
Flat structures have fewer levels, while tall structures have numerous levels.
D . The lower-level managers are encouraged to exercise creativity when solving problems:
While creativity may be encouraged, this is not a defining feature of a flat structure.
IIA Practice Guide: Organizational Governance
IIA Standard 2110 -- Governance
Step-by-Step Justification:IIA Reference:Thus, the correct and verified answer is C. The span of control is wide.
