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    PracticeCPA®CPA ISC Practice Exam 3Question 07
    Medium1 markMultiple Choice
    Area II: SecurityData PrivacySecurity

    CPA · Question 07 · Area II: Security

    A healthcare provider stores patient records in a data warehouse. To comply with HIPAA while allowing data analysts to study demographic trends, the organization replaces patient names with unique alphanumeric codes that can be mapped back to the original data only by the database administrator. This technique is known as:

    Answer options:

    A.

    Encryption

    B.

    Tokenization

    C.

    Hashing

    D.

    Data Masking

    How to approach this question

    Distinguish between reversible replacement (Tokenization) and one-way scrambling (Hashing) or hiding (Masking).

    Full Answer

    B.Tokenization✓ Correct
    Tokenization is the process of substituting a sensitive data element with a non-sensitive equivalent, referred to as a token, that has no extrinsic or exploitable meaning or value. The mapping is maintained in a secure token vault.

    Common mistakes

    Confusing Tokenization with Encryption (mathematical transformation) or Hashing (irreversible).
    Question 06All questionsQuestion 08

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