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NEW QUESTION: 1
A risk analysis should:
A. include a benchmark of similar companies in its scope.
B. address the potential size and likelihood of loss.
C. assume an equal degree of protection for all assets.
D. give more weight to the likelihood vs. the size of the loss.
Answer: B
Explanation:
A risk analysis should take into account the potential size and likelihood of a loss. It could include comparisons with a group of companies of similar size. It should not assume an equal degree of protection for all assets since assets may have different risk factors. The likelihood of the loss should not receive greater emphasis than the size of the loss; a risk analysis should always address both equally.

NEW QUESTION: 2
What is audit risk?
A. The risk that remains after management has executed risk management activities.
B. The amount of risk that is reduced through risk management operations.
C. An incorrect conclusion based on evidence uncovered during an audit.
D. Internal and external risk factors that exist when there are no controls implemented.
Answer: C

NEW QUESTION: 3
Which of the following would provide the HIGHEST level of confidence in the integrity of data when sent from one party to another?
A. Harden the communication infrastructure.
B. Require data to be transmitted over a secure connection.
C. Require files to be digitally signed before they are transmitted.
D. Enforce multi-factor authentication (MFA) on both ends of the communication.
Answer: C

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