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Free CIPT Exam Braindumps (page: 22)

Page 21 of 54
PDF with 285 Questions

What is the goal of privacy enhancing technologies (PETS) like multiparty computation and differential privacy?

  1. To facilitate audits of third party vendors.
  2. To protect sensitive data while maintaining its utility.
  3. To standardize privacy activities across organizational groups.
  4. To protect the security perimeter and the data items themselves.

Answer(s): B


Reference:

https://royalsociety.org/-/media/policy/projects/privacy-enhancing- technologies/privacy-report-summary.pdf



To comply with the Sarbanes-Oxley Act (SOX), public companies in the United States are required to annually report on the effectiveness of the auditing controls of their financial reporting systems. These controls must be implemented to prevent unauthorized use, disclosure, modification, and damage or loss of financial data.

Why do these controls ensure both the privacy and security of data?

  1. Modification of data is an aspect of privacy; unauthorized use, disclosure, and damage or loss of data are aspects of security.
  2. Unauthorized use of data is an aspect of privacy; disclosure, modification, and damage or loss of data are aspects of security.
  3. Disclosure of data is an aspect of privacy; unauthorized use, modification, and damage or loss of data are aspects of security.
  4. Damage or loss of data are aspects of privacy; disclosure, unauthorized use, and modification of data are aspects of privacy.

Answer(s): C



Which of the following entities would most likely be exempt from complying with the General Data Protection Regulation (GDPR)?

  1. A South American company that regularly collects European customers' personal data.
  2. A company that stores all customer data in Australia and is headquartered in a European Union (EU) member state.
  3. A Chinese company that has opened a satellite office in a European Union (EU) member state to service European customers.
  4. A North American company servicing customers in South Africa that uses a cloud storage system made by a European company.

Answer(s): C



SCENARIO

WebTracker Limited is a cloud-based online marketing service located in London. Last year, WebTracker migrated its IT infrastructure to the cloud provider AmaZure, which provides SQL Databases and Artificial Intelligence services to WebTracker. The roles and responsibilities between the two companies have been formalized in a standard contract, which includes allocating the role of data controller to WebTracker.

The CEO of WebTracker, Mr. Bond, would like to assess the effectiveness of AmaZure's privacy controls, and he recently decided to hire you as an independent auditor. The scope of the engagement is limited only to the marketing services provided by WebTracker, you will not be evaluating any internal data processing activity, such as HR or Payroll.

This ad-hoc audit was triggered due to a future partnership between WebTracker and SmartHome -- a partnership that will not require any data sharing. SmartHome is based in the USA, and most recently has dedicated substantial resources to developing smart refrigerators that can suggest the recommended daily calorie intake based on DNA information. This and other personal data is collected by WebTracker.

To get an idea of the scope of work involved, you have decided to start reviewing the company's documentation and interviewing key staff to understand potential privacy risks.

The results of this initial work include the following notes:

There are several typos in the current privacy notice of WebTracker, and you were not able to find the privacy notice for SmartHome.

You were unable to identify all the sub-processors working for SmartHome. No subcontractor is indicated in the cloud agreement with AmaZure, which is responsible for the support and maintenance of the cloud infrastructure.
There are data flows representing personal data being collected from the internal employees of WebTracker, including an interface from the HR system. Part of the DNA data collected by WebTracker was from employees, as this was a prototype approved by the CEO of WebTracker.
All the WebTracker and SmartHome customers are based in USA and Canada.

Based on the initial assessment and review of the available data flows, which of the following would be the most important privacy risk you should investigate first?

  1. Verify that WebTracker's HR and Payroll systems implement the current privacy notice (after the typos are fixed).
  2. Review the list of subcontractors employed by AmaZure and ensure these are included in the formal agreement with WebTracker.
  3. Evaluate and review the basis for processing employees' personal data in the context of the prototype created by WebTracker and approved by the CEO.
  4. Confirm whether the data transfer from London to the USA has been fully approved by AmaZure and the appropriate institutions in the USA and the European Union.

Answer(s): D

Explanation:

Transferring personal data across borders can pose significant privacy risks if not done in compliance with applicable data protection laws and regulations. It is important for WebTracker to confirm that this data transfer has been fully approved by all relevant parties to ensure that it is being done in a compliant manner.






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