Auditing: Benford's Law and Auditor Independence
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Questions and Answers

What is the primary risk mitigation focus when verifying the existence of robust patch management processes in an IaaS environment?

  • Data encryption
  • Data center outages
  • System vulnerabilities (correct)
  • Physical security
  • Who is typically responsible for encrypting sensitive data before uploading it to the cloud?

  • Managed service provider
  • Client (correct)
  • Third-party auditor
  • Cloud provider
  • What information must be documented in the audit documentation for each engagement according to AS 1215?

  • Auditor independence and staff training (correct)
  • Vendor invoices
  • Employee salaries
  • Cloud service agreement details
  • What type of cloud service model would you choose to rent virtual machines that include CPUs, RAM, storage, and networking?

    <p>IaaS</p> Signup and view all the answers

    Who is responsible for the physical security of data centers where cloud services are hosted?

    <p>Cloud provider</p> Signup and view all the answers

    What does the Y-axis represent on a Benford distribution graph?

    <p>The percentage of numbers starting with a specific leading digit</p> Signup and view all the answers

    What type of report would an auditor issue when evaluating the design and implementation of controls over financial reporting?

    <p>SOC 1 Type II</p> Signup and view all the answers

    What does a significant deviation from the expected Benford distribution in a set of vendor invoices suggest?

    <p>Further investigation is warranted to understand the cause of the deviation</p> Signup and view all the answers

    What is the most suitable list for analysis with Benford's Law?

    <p>List of employee salaries within a department</p> Signup and view all the answers

    What type of report would an auditor request from a third-party service provider when auditing the financial reports of a company that outsources its payroll?

    <p>SOC 1 Type II</p> Signup and view all the answers

    What is the typical shape of a graph representing the distribution of leading digits in accordance with Benford's Law?

    <p>A downward sloping curve</p> Signup and view all the answers

    Who is primarily responsible for the configuration and maintenance of the database that stores customer data in a SaaS application?

    <p>The cloud provider</p> Signup and view all the answers

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