hardMultiple ChoiceObjective-mapped
CISA Practice Question: An IS auditor is evaluating a system development…
An IS auditor is evaluating a system development project that uses an outsourced team. The contract allows the vendor to reuse some of the developed code in other projects. What is the auditor's PRIMARY concern?
⚠ Common exam trap
The trap here is that candidates focus on operational risks (delays, maintenance, quality) rather than the contractual and legal risk of losing intellectual property rights, which is the auditor's primary concern when the vendor is explicitly allowed to reuse code.
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
✓
The organization may lose control of intellectual property.
The contract clause allowing the vendor to reuse developed code in other projects directly transfers ownership or licensing rights of the intellectual property (IP) to the vendor. This means the organization may lose exclusive control over the code, potentially allowing competitors to access proprietary logic or algorithms. The IS auditor's primary concern is safeguarding the organization's IP assets, as this loss can have long-term strategic and competitive implications.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
The vendor might not deliver on time.
Why it's wrong here
Schedule risk is not directly tied to code reuse.
- ✓
The organization may lose control of intellectual property.
Why this is correct
Reuse rights could dilute exclusivity and security control.
- ✗
The vendor may not maintain the code after the project ends.
Why it's wrong here
Maintenance is important but not directly related to reuse.
- ✗
The vendor may use substandard development practices.
Why it's wrong here
This is a general risk, not specific to code reuse.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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