Online Access Free CIPP-US Practice Test

If an organization maintains data classified as high sensitivity in the same system as data classified as low sensitivity, which of the following is the most likely outcome?

• A.The organization will be able to address legal discovery requests efficiently without producing more information than necessary.
• B.Temporary employees will be able to find the data necessary to fulfill their responsibilities.
• C.The impact of an organizational data breach will be more severe than if the data had been segregated.
• D.The organization will still be in compliance with most sector-specific privacy and security laws.

SCENARIO
Please use the following to answer the next question:
Otto is preparing a report to his Board of Directors at Filtration Station, where he is responsible for the privacy program. Filtration Station is a U.S. company that sells filters and tubing products to pharmaceutical companies for research use. The company is based in Seattle, Washington, with offices throughout the U.S. and Asia. It sells to business customers across both the U.S. and the Asia-Pacific region. Filtration Station participates in the Cross-Border Privacy Rules system of the APEC Privacy Framework.
Unfortunately, Filtration Station suffered a data breach in the previous quarter. An unknown third party was able to gain access to Filtration Station's network and was able to steal data relating to employees in the company's Human Resources database, which is hosted by a third-party cloud provider based in the U.S. The HR data is encrypted. Filtration Station also uses the third-party cloud provider to host its business marketing contact database. The marketing database was not affected by the data breach. It appears that the data breach was caused when a system administrator at the cloud provider stored the encryption keys with the data itself.
The Board has asked Otto to provide information about the data breach and how updates on new developments in privacy laws and regulations apply to Filtration Station. They are particularly concerned about staying up to date on the various U.S. state laws and regulations that have been in the news, especially the California Consumer Privacy Act (CCPA) and breach notification requirements.
What can Otto do to most effectively minimize the privacy risks involved in using a cloud provider for the HR data?

• A.Negotiate a Business Associate Agreement with the cloud provider to protect any health-related data employees might share with Filtration Station.
• B.Ensure that the cloud provider abides by the contractual requirements by conducting an on-site audit.
• C.Obtain express consent from employees for storing the HR data in the cloud and keep a record of the employee consents.
• D.Request that the Board sign off in a written document on the choice of cloud provider.

U.S. federal laws protect individuals from employment discriminaton based on all of the following EXCEPT?

• A.Pregnancy.
• B.Genetic information.
• C.Age.
• D.Marital status.

SCENARIO
Please use the following to answer the next question:
Felicia has spent much of her adult life overseas, and has just recently returned to the U.S. to help her friend Celeste open a jewelry store in California. Felicia, despite being excited at the prospect, has a number of security concerns, and has only grudgingly accepted the need to hire other employees. In order to guard against the loss of valuable merchandise, Felicia wants to carefully screen applicants. With their permission, Felicia would like to run credit checks, administer polygraph tests, and scrutinize videos of interviews. She intends to read applicants' postings on social media, ask question NO:s about drug addiction, and solicit character references. Felicia believes that if potential employees are serious about becoming part of a dynamic new business, they will readily agree to these requirements.
Felicia is also in favor of strict employee oversight. In addition to protecting the inventory, she wants to prevent mistakes during transactions, which will require video monitoring. She also wants to regularly check the company vehicle's GPS for locations visited by employees. She also believes that employees who use their own devices for work-related purposes should agree to a certain amount of supervision.
Given her high standards, Felicia is skeptical about the proposed location of the store. She has been told that many types of background checks are not allowed under California law. Her friend Celeste thinks these worries are unfounded, as long as applicants verbally agree to the checks and are offered access to the results. Nor does Celeste share Felicia's concern about state breach notification laws, which, she claims, would be costly to implement even on a minor scale.
Celeste believes that even if the business grows a customer database of a few thousand, it's unlikely that a state agency would hassle an honest business if an accidental security incident were to occur.
In any case, Celeste feels that all they need is common sense ?like remembering to tear up sensitive documents before throwing them in the recycling bin. Felicia hopes that she's right, and that all of her concerns will be put to rest next month when their new business consultant (who is also a privacy professional) arrives from North Carolina.
Regarding credit checks of potential employees, Celeste has a misconception regarding what?

• A.Disclosure requirements.
• B.Employment-at-will rules.
• C.Records retention policies
• D.Consent requirements.

Under the Fair and Accurate Credit Transactions Act (FACTA), what is the most appropriate action for a car dealer holding a paper folder of customer credit reports?

• A.To follow the Red Flags Rule by mailing the reports to customers
• B.To follow the Privacy Rule by notifying customers that the reports are being stored
• C.To follow the Safeguards Rule by transferring the reports to a secure electronic file
• D.To follow the Disposal Rule by having the reports shredded