Certified Information Systems Auditor Practice Exam 2025 - Free CISA Practice Questions and Study Guide

In the context of assessing control environments, the review of compliance with industry regulations is a crucial factor for an IS auditor. This compliance ensures that the organization adheres to the necessary standards and legal requirements governing its operations. Regulatory compliance often serves as a benchmark for a robust control environment, as it reflects not only the adherence to laws but also to frameworks that dictate the organization’s operational integrity.

Evaluating compliance helps identify risks associated with non-compliance, which can have significant legal and financial implications for the organization. Additionally, regulations often include specific controls that need to be in place, making them significant indicators of the effectiveness of the control environment. By ensuring that these regulations are met, the IS auditor can ascertain that the organization maintains a strong foundation for its control systems, thereby promoting accountability and fostering a culture of ethical behavior.

While aspects like employee satisfaction rates, transaction processing speed, and financial performance can provide insights into the organization’s operational effectiveness, they do not directly address the requirements and expectations set forth by regulatory bodies. Focusing on compliance aligns with the primary objectives of an IS auditor, which are risk management and the assurance of reliable financial reporting and operational integrity within the organization.