CISA Practice Question: Information Systems Operations and Business Resilience
An IS auditor is assessing the vendor management process. Which TWO are key controls for managing third-party risk?
⚠ Common exam trap
It's easy for candidates to confuse pre-contract due diligence (Option E) with ongoing risk management controls, but the CISA exam emphasizes that key controls for managing third-party risk must include contractual mechanisms like right-to-audit and continuous monitoring of SLAs, not just initial assessments.
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
✓
Including right-to-audit clauses in contracts.
Including right-to-audit clauses in contracts is a key control for managing third-party risk because it grants the IS auditor or the organization the contractual authority to independently verify the vendor's security controls, data handling practices, and compliance with policies. This clause ensures ongoing oversight beyond initial due diligence, allowing for on-site inspections or reviews of the vendor's systems and processes, which is critical for detecting control failures or unauthorized changes that could impact the organization's data.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Requiring vendors to disclose all subcontractors.
Why it's wrong here
Addresses fourth-party risk but is not one of the two key controls asked.
- ✓
Including right-to-audit clauses in contracts.
Why this is correct
Allows the organization to audit the vendor's controls.
- ✓
Regularly monitoring service level agreements (SLAs).
Why this is correct
Key control to ensure vendor meets performance targets.
- ✗
Developing an exit strategy for each vendor.
Why it's wrong here
Important for risk management but not a control for ongoing operations.
- ✗
Performing vendor due diligence before contract signing.
Why it's wrong here
Important but a pre-contract activity, not an ongoing control.
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JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This CISA practice question is part of Courseiva's free ISACA certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the CISA exam.