ExpertHard1 markMultiple Choice
CPA · Question 70 · Area I: Information Systems
Which of the following is an example of 'Inherent Risk' in a cloud environment?
Which of the following is an example of 'Inherent Risk' in a cloud environment?
Answer options:
A.
Failure to patch a server.
B.
The multi-tenant nature of public cloud infrastructure.
C.
Lack of a firewall.
D.
Employee negligence.
How to approach this question
Identify the risk that exists simply because you chose this path, regardless of controls.
Full Answer
B.The multi-tenant nature of public cloud infrastructure.✓ Correct
The multi-tenant nature of public cloud infrastructure.
Inherent risk is the susceptibility of an assertion to a misstatement that could be material, assuming that there are no related controls.
Common mistakes
Confusing Inherent Risk with Control Risk.
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