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Governance, Risk, and CompliancemediumMultiple ChoiceObjective-mapped

CAS-004 Governance, Risk, and Compliance Practice Question

A company is evaluating a new cloud service provider. The provider offers a SOC 2 Type II report, a third-party penetration test summary, and a completed security questionnaire. However, the company's procurement team discovers that the provider uses a subcontractor for data storage. Which of the following is the BEST next step for the security team?

Answer choices

Why each option matters

Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.

Correct answer & explanation

Request a right-to-audit clause covering the subcontractor.

The presence of a subcontractor introduces fourth-party risk. The company should assess the subcontractor's security through a right-to-audit clause or request equivalent evidence, as the primary provider's controls may not cover the subcontractor.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • Require the provider to use only in-house resources.

    Why it's wrong here

    Requiring the provider to use only in-house resources ignores the contractual and operational reality that the subcontractor is already engaged for data storage; the security team must instead assess the subcontractor’s own SOC 2 Type II report and contractual controls. This option is tempting because it would eliminate third-party risk entirely, and it would be correct if the provider’s subcontractor lacked any independent audit evidence or refused to provide a security questionnaire.

  • Accept the risk because the provider has a SOC 2 report.

    Why it's wrong here

    SOC 2 may not cover the subcontractor's controls.

  • Request a right-to-audit clause covering the subcontractor.

    Why this is correct

    This allows the company to assess the fourth-party risk.

  • Immediately terminate the contract due to subcontractor risk.

    Why it's wrong here

    Termination is premature without assessment.

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JA

Written by Johnson Ajibi, MSc IT Security

Senior Network & Security Engineer · founder of Courseiva

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