Data Breach Notification: Auditor's First Steps

Discovering Unnotified Data Breach: Auditor's Priority

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Question

An internal IS auditor discovers that a service organization did not notify its customers following a data breach.

Which of the following should the auditor do FIRST?

Answers

Explanations

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A. B. C. D.

A.

The correct answer to this question is A. Notify audit management of the finding.

Explanation: As per the ISACA Code of Ethics, the first responsibility of an IS auditor is to maintain objectivity and independence in performing their duties. Therefore, the first action the auditor should take is to notify their audit management of the finding. This is important because the audit management will then determine the appropriate course of action to take.

If the auditor decides to report the finding to regulatory authorities or notify the service organization's customers directly, they may compromise their independence and objectivity. Reporting the finding to regulatory authorities may also violate the service organization's contractual obligations, and notifying the customers may create unnecessary panic and alarm.

Once the audit management has been notified of the finding, they will evaluate the situation and determine the appropriate next steps. This may include requiring the service organization to notify its customers, reporting the finding to regulatory authorities, or taking other corrective actions. The audit management may also determine whether or not to escalate the issue to senior management or the board of directors.

In summary, the first action the IS auditor should take in this scenario is to notify their audit management of the finding. The audit management will then evaluate the situation and determine the appropriate course of action to take.