CDPSE Practice Test 19 — 15 Questions

Question 1

A retail company is revising its privacy governance framework after a data breach. The board wants assurance that privacy risks are being managed effectively and that the privacy program is aligned with business strategy. Which of the following should be established to provide ongoing oversight and strategic direction?

Choose an answer to begin — your selection is scored in the full session.

Accepted Answer

A privacy steering committee. A privacy steering committee is the appropriate body to provide ongoing oversight and strategic direction, ensuring privacy risks are managed and aligned with business strategy. DPIAs, audits, and training are important operational elements, but they do not fulfill the continuous governance role that the board requires.

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A data protection impact assessment (DPIA) process

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A privacy training program

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An annual privacy audit

Question 2

A financial services company is designing a new data life cycle management policy. The privacy team wants to ensure that data quality is maintained throughout the life cycle, from collection to disposal. Which of the following practices BEST supports data quality during the storage and use phases?

Accepted Answer

Conduct periodic data accuracy audits and provide users with a self-service portal to correct their information.. Maintaining data quality during storage and use requires ongoing attention to accuracy. Periodic audits identify errors, and a self-service portal allows data subjects to correct their information, directly supporting accuracy and completeness. These practices align with privacy principles that require personal data to be accurate and up to date, and they are integral to a mature data life cycle management program.

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Implement strict access controls so only authorized personnel can modify data.

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Encrypt all personal data at rest using AES-256.

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Archive data older than 12 months to a separate database to improve performance.

Question 3

When implementing Privacy by Design (PbD) in a new mobile application, which TWO of the following are considered proactive technical controls?

Accepted Answer

Default privacy settings. Option D (Default privacy settings) is a proactive technical control because Privacy by Design's "Privacy by Default" principle requires that the application's configuration automatically applies the most privacy-protective settings without requiring user action, ensuring data is protected from the first moment of use. Option E (Data minimization) is likewise proactive and technical: it is implemented in the application's data model, APIs, and collection logic so that only the minimum personal data necessary for the stated purpose is gathered, processed, and retained, reducing exposure before any incident occurs. By contrast, option A (Periodic external audits) is a reactive/detective governance activity performed after implementation rather than an embedded technical control. Option B (End-user training) is an administrative/organizational awareness measure, not a technical control, and option C (Comprehensive incident response plan) is a reactive procedural document that addresses events after they happen rather than preventing them by design.

Answer

Periodic external audits

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End-user training

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Comprehensive incident response plan

Question 4

Which THREE tasks are associated with 'Data Classification' during the life cycle?

Accepted Answer

Identifying sensitive data elements. Data Classification during the life cycle involves identifying which data elements are sensitive (A), because you must first discover and recognize regulated or confidential data such as PII, PHI, or PCI before it can be protected. It also includes assigning classification labels (E), such as Public, Internal, Confidential, or Restricted, which formally tag each data element according to the organization's classification scheme. Once labels exist, applying policy controls based on those labels (C) is part of classification-driven protection, since controls like encryption, access restrictions, or DLP rules are enforced according to the assigned classification. Refreshing server hardware (B) is an infrastructure maintenance task unrelated to classifying data. Backing up the database (D) is a data availability and recovery activity, not a classification task, although backups may later inherit classification labels.

Answer

Refreshing the server hardware

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Backing up the database

Question 5

When mapping data flows to identify privacy risks, a practitioner discovers that personal data is being transferred to a non-affiliated third party. What is the immediate requirement?

Accepted Answer

Validate that the transfer is supported by an appropriate legal basis and documented in the Records of Processing Activities (ROPA).. When personal data is transferred to a non-affiliated third party, the immediate requirement is to ensure that the transfer has a valid legal basis under the applicable data protection law and that it is properly documented in the ROPA. This validates the lawfulness of the processing and creates accountability. Without a legal basis, the transfer would be unlawful, and documentation is required to demonstrate compliance.

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Request the third party to delete the data until a contract is signed.

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Disable the API endpoint connecting to the third party to prevent further data exposure.

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Immediately notify the supervisory authority of the data transfer.

Question 6

A privacy engineer is configuring Azure Data Factory to ensure PII is masked during integration. Which feature should be configured to apply dynamic data masking on SQL targets?

Accepted Answer

SQL Dynamic Data Masking policies. Dynamic data masking (DDM) on SQL targets is a database-engine feature configured via SQL DDM policies, which mask column values at query time for non-privileged users without altering stored data. In Azure, this is enabled on Azure SQL Database, Azure SQL Managed Instance, and SQL Server via T-SQL (CREATE MASKED COLUMN) or the Azure portal's Dynamic Data Masking blade. Azure Data Factory itself does not apply DDM; it relies on the target SQL engine's masking policy.

Answer

Azure Policy definition

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Data Factory Mapping Data Flows

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Azure Key Vault access policies

Question 7

Which TWO actions should a CDPSE take to demonstrate 'Privacy by Design' in a software project?

Accepted Answer

Include privacy requirements in the project specification and user stories.. Option C is correct because embedding privacy requirements directly into the project specification and user stories operationalizes Privacy by Design at the earliest stage, ensuring privacy is a functional requirement rather than an afterthought. Option E is correct because conducting regular privacy testing throughout the development lifecycle verifies that privacy controls work as intended before release, which aligns with the proactive, preventive nature of Privacy by Design. Option A is wrong because sharing one password across all database administrative users destroys accountability and violates access-control and authentication principles. Option B is wrong because reviewing privacy only after deployment is reactive, not the proactive 'by design' approach. Option D is wrong because hiding privacy settings from users undermines transparency and user control, which are core Privacy by Design principles.

Answer

Use the same password for all database administrative users.

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Only conduct a privacy review after the application has been deployed.

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Hide all privacy settings from the user to prevent tampering.

Question 8

A privacy engineer is implementing a consent management platform (CMP) for a website that uses cookies for analytics, advertising, and essential functions. The CMP must ensure that non-essential cookies are not set before the user grants consent, and that the user's choice is honored on subsequent visits. Which technical design BEST meets these requirements?

Accepted Answer

Block all non-essential scripts until consent is granted, store the consent state in a first-party cookie, and re-check that state on every page load.. Prior consent requires that non-essential cookies not be set until the user affirmatively agrees. Blocking non-essential scripts until consent, storing the choice in a first-party cookie, and re-checking it on each page load prevents pre-consent collection and honors the user's decision on return visits. DNT and short expiry do not provide affirmative, persistent consent.

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Load all cookie-setting scripts by default and remove the cookies if the user declines consent after the page loads.

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Rely on the browser's Do Not Track (DNT) header to determine whether non-essential cookies may be set.

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Set non-essential cookies with a short expiry so that any pre-consent collection is limited in duration.

Question 9

An organization is updating its privacy governance framework to comply with GDPR. The Data Protection Officer (DPO) needs to ensure that the accountability principle is met. Which of the following actions best demonstrates accountability?

Accepted Answer

Establishing a centralized Record of Processing Activities (ROPA).. The GDPR accountability principle (Article 5(2)) requires the controller to demonstrate compliance, not just comply. A centralized Record of Processing Activities (ROPA) under Article 30 is the foundational artifact that documents what data is processed, why, by whom, where, and with what safeguards, and it is the primary evidence a DPO can produce to show accountability. It operationalizes the principle by making processing transparent and auditable.

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Outsourcing all data processing activities to a third-party vendor.

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Implementing a strong password policy for all employees.

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Creating a public-facing website privacy notice.

Question 10

A privacy engineer is implementing a data retention policy for a cloud-based SaaS application. The policy requires that customer data be deleted after 30 days of account inactivity. The application uses a multi-tenant database where each tenant's data is logically separated but stored in the same physical tables. Which technical approach best ensures that the retention policy is enforced without affecting other tenants?

Accepted Answer

Implement a scheduled job that queries for inactive tenants and deletes their records using tenant-specific identifiers.. The most effective approach is to implement a scheduled job that identifies inactive tenants and deletes their records using tenant-specific identifiers. This method respects the logical separation in the multi-tenant database, ensures only the intended data is removed, and can be automated for consistent enforcement. Other options either affect other tenants, do not achieve actual deletion, or are overly disruptive.

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Shred the entire database and restore from backups that exclude the inactive tenants.

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Move inactive tenants' data to a separate cold storage table and mark it for deletion after a grace period.

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Encrypt each tenant's data with a unique key and delete the key when the tenant becomes inactive.

Question 11

Why is it important to have a defined data retention policy as part of privacy governance?

Accepted Answer

To comply with data minimization and reduce risk.. A defined data retention policy is important because it enforces data minimization by ensuring personal data is kept only as long as necessary for the stated purpose, thereby reducing privacy risk and regulatory exposure. It also supports compliance with laws like GDPR that require storage limitation. Saving costs or increasing storage are secondary benefits, not the primary privacy governance rationale.

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To satisfy customer requests for free gifts.

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To save costs on hardware maintenance.

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To increase storage space.

Question 12

A privacy engineer is implementing differential privacy in a data analytics pipeline. To ensure the privacy budget remains intact over multiple queries, which technique should be applied?

Accepted Answer

Utilizing composition theorems to track cumulative privacy loss. In differential privacy, each query consumes a portion of the privacy budget (epsilon). Composition theorems provide a formal way to track cumulative privacy loss across multiple queries, ensuring the total budget is not exceeded. This is essential for maintaining the promised privacy guarantee over a series of analyses.

Answer

Implementing k-anonymity on the original dataset

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Increasing the sensitivity of the query function

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Applying a fixed noise distribution regardless of query count

Question 13

A CDPSE is reviewing the organization's data retention practices. The organization stores customer personal data indefinitely because storage costs are low. Which principle of privacy risk management is being violated?

Accepted Answer

Storage limitation. The correct answer is storage limitation because personal data must not be kept longer than necessary. Indefinite retention violates this principle. Organizations must establish and enforce retention schedules, and delete or anonymize data when the purpose expires. Other principles like data minimization or security are important but do not directly address the duration of storage.

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Integrity and confidentiality

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Lawfulness, fairness, and transparency

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Data minimization

Question 14

When conducting a Privacy Impact Assessment (PIA) for a new application, what is the role of 'Data Mapping'?

Accepted Answer

To define the flow of PII throughout the application. Data mapping in a PIA is the process of documenting how personally identifiable information (PII) flows through an application—from collection points, through processing, storage, sharing, and eventual deletion. This visibility is essential to identify privacy risks, ensure compliance with regulations (e.g., GDPR), and implement data minimization. Option D correctly captures this core purpose.

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To provide encryption keys

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To automate user consent

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To purge old data records

Question 15

A privacy analyst is reviewing the data life cycle for a mobile fitness app that collects user location data. The analyst needs to identify the stage where data is initially collected from users. Which stage of the data life cycle does this represent?

Accepted Answer

Collection. The collection stage is where data is first obtained from users or other sources. In the fitness app, location data is gathered from user devices, marking the start of the data life cycle. This stage is essential for implementing privacy controls such as consent and notice, ensuring that data collection is lawful and transparent.

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Processing

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Disposal

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Storage