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    PracticeCPA®CPA ISC Practice Exam 4Question 02
    Hard1 markMultiple Choice
    Area I: Information SystemsCloud ComputingRiskArea I

    CPA · Question 02 · Area I: Information Systems

    An auditor is reviewing the Service Level Agreement (SLA) for a client using a public cloud provider. The client handles highly sensitive healthcare data. The auditor notes that the cloud provider stores data in a multi-tenant environment. Which specific risk is MOST heightened in this deployment model compared to a private cloud?

    Answer options:

    A.

    Inability to scale resources rapidly

    B.

    Data commingling and isolation failure

    C.

    Increased capital expenditure (CapEx)

    D.

    Lack of physical security at the data center

    How to approach this question

    Focus on the definition of 'public cloud' and 'multi-tenant'. The key risk in sharing resources is that one tenant might access another's data.

    Full Answer

    B.Data commingling and isolation failure✓ Correct
    Multi-tenancy implies that data from different customers resides on the same physical hardware. If the hypervisor or isolation logic fails, there is a risk of data commingling.

    Common mistakes

    Assuming public clouds are less physically secure (they are usually more secure physically) or have scalability issues.
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