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    PracticeCPA®CPA ISC Practice Exam 2Question 26
    Medium1 markMultiple Choice
    Area II: SecurityConfidentialityArea II

    CPA · Question 26 · Area II: Security

    Which of the following best describes 'Tokenization'?

    Answer options:

    A.

    Scrambling data using a mathematical formula and a key.

    B.

    Replacing sensitive data with a non-sensitive equivalent that has no extrinsic or exploitable meaning.

    C.

    Hiding data within an image or audio file.

    D.

    Masking all but the last four digits of a number.

    How to approach this question

    Differentiate Tokenization (random replacement) from Encryption (mathematical transformation).

    Full Answer

    B.Replacing sensitive data with a non-sensitive equivalent that has no extrinsic or exploitable meaning.✓ Correct
    Tokenization reduces risk because the token itself cannot be reversed to the original data without access to the token vault.

    Common mistakes

    Confusing Tokenization with Encryption.
    Question 25All questionsQuestion 27

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