CISA Practice Question: Information Systems Operations and Business Resilience
An IS auditor is reviewing the vendor management program for a critical outsourced service. The vendor has recently been acquired by another company. Which TWO factors should the auditor be most concerned about regarding the acquisition?
⚠ Common exam trap
CISA often tests whether candidates focus on control and contractual concerns (security standards, change-of-control clauses) rather than commercial or cultural concerns (price, culture) that feel relevant but are not the auditor's primary focus.
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 vendor's new owner may have different security standards.
Option A is correct because an acquisition can result in the new owner applying its own security policies, controls, and risk posture to the acquired vendor, potentially degrading the security safeguards the outsourced critical service previously met. Option E is correct because if the contract lacks a change-of-control clause requiring the customer's consent or notification, the acquisition could transfer the service to an owner the organization never vetted, leaving it without a contractual right to renegotiate, exit, or enforce prior obligations. Option B is not the primary audit concern since price increases are a commercial matter typically addressed through existing contract terms rather than a control or risk exposure. Option C is not selected because cultural differences, while relevant to relationship management, do not directly threaten the security or contractual integrity of the outsourced service. Option D is not selected because personnel turnover is an operational risk that should be managed through SLAs, knowledge transfer, and continuity provisions rather than being the defining concern of a change of control.
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's new owner may have different security standards.
Why this is correct
An acquisition can change the vendor's ownership, governance and security posture, so previously assured controls may no longer apply. Verifying the new owner's security standards addresses the stem's concern that assurance over the outsourced service remains valid post-acquisition.
- ✗
The vendor's new owner may increase prices.
Why it's wrong here
Price changes affect cost and contract negotiation, not the security, availability or compliance posture of the outsourced service. Auditors focus on whether the acquisition alters control ownership, data handling or regulatory obligations; commercial terms are a procurement concern, addressed through contract review.
- ✗
The vendor's new owner may have a different organizational culture.
Why it's wrong here
Cultural differences are difficult to audit objectively and do not by themselves change contractual obligations or control effectiveness. Auditors concentrate on concrete changes to governance, security controls and compliance responsibilities; culture is a management consideration, not a measurable vendor risk finding.
- ✗
The vendor's new owner may lay off key personnel.
Why it's wrong here
Staff attrition is a real acquisition risk, but it is a downstream operational consequence rather than a direct change in contractual or control obligations. Auditors prioritise continuity of service commitments and security controls; personnel retention is typically addressed through transition planning and SLAs.
- ✓
The contract may not have a clause requiring consent for change of control.
Why this is correct
Without a change-of-control clause, the acquisition transfers the contract to the new owner without the organisation's consent. The auditor should be concerned that service levels, security obligations and termination rights may not survive, leaving the outsourced critical service governed by unfamiliar terms.
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JA
Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official ISACA exam blueprint
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.