CISA Practice Question: Information Systems Operations and Business Resilience
During a vendor audit, an IS auditor discovers that a cloud service provider uses subcontractors to manage data storage. The contract does not mention subcontracting. Which THREE risks should the auditor highlight to management?
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
✓
Vendor concentration risk from subcontractor dependency
Vendor concentration risk arises if the subcontractor is a single point of failure. Fourth-party risk means the organization has no direct control. Exit strategy concerns include difficulty in transitioning if the subcontractor fails.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Vendor concentration risk from subcontractor dependency
Why this is correct
Over-reliance on a single subcontractor increases risk.
- ✓
Exit strategy complications if subcontractor fails
Why this is correct
Transitioning services may be complex without contractual rights.
- ✗
Improved service level performance
Why it's wrong here
Subcontracting does not guarantee improved performance.
- ✗
Increased licensing costs
Why it's wrong here
Licensing costs are not directly related to subcontracting.
- ✓
Fourth-party risk due to lack of contractual oversight
Why this is correct
The organization has no direct contract with the subcontractor.
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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.