What would be an IS auditor's BEST recommendation upon finding that a third-party IT service provider hosts the organization's human resources (HR) system in a foreign country?
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A. B. C. D.A.
As an IS auditor, the BEST recommendation upon finding that a third-party IT service provider hosts the organization's human resources (HR) system in a foreign country would be to conduct a privacy impact analysis.
Explanation: A privacy impact analysis (PIA) is a systematic process used to evaluate how an organization's information practices affect individuals' privacy. The PIA process is used to identify the potential privacy risks and implement measures to mitigate those risks. Since the HR system is a crucial system that contains sensitive information about the organization's employees, conducting a PIA would help the organization to assess the risks of hosting the system in a foreign country.
The other options, such as implementing change management review, reviewing third-party audit reports, or performing background verification checks, are also important in managing third-party IT service providers. However, these options may not address the specific risk associated with hosting the HR system in a foreign country.
Implementing change management review would help ensure that any changes made to the HR system are authorized, documented, and tested to minimize the risk of unauthorized changes. Reviewing third-party audit reports would provide insight into the third-party service provider's security controls and compliance with relevant laws and regulations. Performing background verification checks would help to ensure that the third-party service provider has the necessary expertise and experience to host the HR system securely.
In summary, while all options are important in managing third-party IT service providers, conducting a privacy impact analysis would be the BEST recommendation in this scenario, given the sensitive nature of the HR system and the potential risks associated with hosting it in a foreign country.