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    PracticeCPA®CPA ISC Practice ExamQuestion 61
    Medium1 markMultiple Choice
    Area I: Information SystemsAvailabilityBCPRisk Assessment

    CPA · Question 61 · Area I: Information Systems

    An auditor is reviewing a 'Business Continuity Plan' (BCP). The plan relies on a 'Reciprocal Agreement' with a neighboring company. What is a major risk of this strategy?

    Answer options:

    A.

    It is too expensive.

    B.

    In a widespread disaster (e.g., hurricane), both companies might be affected and unable to host the other.

    C.

    It requires identical hardware.

    D.

    It violates GDPR.

    How to approach this question

    Reciprocal = I help you, you help me. Risk = We both get hit by the same bus.

    Full Answer

    B.In a widespread disaster (e.g., hurricane), both companies might be affected and unable to host the other.✓ Correct
    B
    Reciprocal agreements are low-cost but high-risk. The primary risk is that a regional disaster affects both parties simultaneously, rendering the agreement useless. Also, the partner may prioritize their own recovery over yours.

    Common mistakes

    Thinking cost is the issue (it's actually a cost-saving measure).
    Question 60All questionsQuestion 62

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