Auditability CT-FT Practice Questions (Page 3)

Questions 11–15

1. 11foundation · easy

   What is the primary purpose of maintaining an audit trail in a financial system?

   • ATo automate the approval process for financial transactions
   • BTo improve the performance of the financial system by optimizing database queries
   • CTo store the personal information of all customers in a secure manner
   • DTo provide a chronological record of transactions and changes that can be used for verification and investigation
   Reveal Solution Discussion Select an answer first
2. 12expert · hard

   A financial institution is migrating from a legacy system to a new cloud-based platform. The compliance team requires that the new system maintain an audit trail that is at least as comprehensive as the legacy system. The legacy system logged every field change, but the new system only logs the final state of a record after a transaction. The test lead must decide whether the new system meets the auditability requirement. What is the most appropriate action?

   • AAccept the new system if it logs the user and timestamp for each transaction.
   • BRequest that the new system vendor provide a report of all changes instead of an audit log.
   • CReject the new system because it does not log individual field changes, which are required for full traceability.
   • DAccept the new system because the final state is sufficient for financial reporting.
   Reveal Solution Discussion Select an answer first
4. 13application · medium

   A test analyst is verifying that the audit trail of a financial system captures all required events. The test includes creating a new customer account, updating the customer's address, and then deleting the account. After the test, the analyst checks the audit log and finds entries for the creation and update, but not for the deletion. What is the most likely cause of this defect?

   • AThe audit log was cleared before the deletion occurred.
   • BThe deletion was performed by a system administrator with elevated privileges.
   • CThe system does not log delete operations.
   • DThe deletion was performed outside of business hours.
   Reveal Solution Discussion Select an answer first
5. 14foundation · easy

   Which testing technique is most appropriate for verifying that a financial system's audit trail is complete?

   • AReviewing the user interface for usability issues
   • BPerforming a load test to ensure the system can handle peak transaction volumes
   • CComparing a sample of transactions from the system against the corresponding entries in the audit log
   • DRunning a virus scan on the database server
   Reveal Solution Discussion Select an answer first
6. 15application · medium

   A fintech company is preparing for an external audit of its loan origination system. The audit team will need to verify that every loan application, from initial submission to final approval, can be traced through the system. The compliance officer asks the test lead to ensure the system maintains a complete audit trail. Which of the following is the most critical component to verify?

   • AThe system records the user ID, timestamp, and action for every change to a loan application.
   • BThe system automatically backs up loan application data every night to a secondary data center.
   • CThe system uses role-based access control to restrict who can view loan applications.
   • DThe system encrypts all loan application data at rest and in transit.
   Reveal Solution Discussion Select an answer first