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CISA Practice Question: During an IT audit, the auditor observes that…

During an IT audit, the auditor observes that mandatory vacation policies are not enforced for IT staff with access to financial systems. What is the PRIMARY risk associated with this finding?

⚠ Common exam trap

Many exam-takers confuse mandatory vacation policies with segregation of duties, assuming both address the same control objective, when in fact vacation enforcement is a detective control for fraud detection, not a preventive control for duty separation.

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

Increased risk of undetected fraud

Mandatory vacation policies force the periodic removal of an employee's access, which allows detection of irregularities or fraudulent activities that require the employee's continued presence to conceal. Without enforcement, a malicious insider could perpetrate fraud (e.g., creating ghost vendors, altering payment records) and cover it up by maintaining daily control over transactions. This directly increases the risk that fraudulent actions will go undetected over extended periods.

Answer analysis

Option-by-option breakdown

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

  • Increased likelihood of system downtime

    Why it's wrong here

    Mandatory vacation is not directly related to system downtime.

  • Increased risk of undetected fraud

    Why this is correct

    Without mandatory vacation, employees could perpetrate fraud without being caught during their absence.

  • Inadequate segregation of duties

    Why it's wrong here

    Segregation of duties is a separate control; mandatory vacation is a detective control.

  • Non-compliance with licensing agreements

    Why it's wrong here

    Licensing compliance is unrelated to vacation policies.

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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.