Which of the following is a potential risk associated with cloud computing?

Prepare for the Information Systems and Controls (ISC) CPA Exam. Study with flashcards and multiple-choice questions, each with hints and explanations. Get ready to excel!

Transparency is a valid risk associated with cloud computing because it can be challenging for users to fully understand where their data is stored, how it is managed, and the specific security measures in place. When using cloud services, the responsibilities for managing and securing data are often shared between the provider and the customer. This can lead to ambiguity about who is responsible for what, which can complicate compliance with regulations and increase vulnerabilities if data handling procedures are not fully transparent.

Cloud computing can also introduce complexities in terms of data visibility and control. Many organizations may find it difficult to audit or assess the internal processes of the cloud provider, making it hard to ensure data integrity and security. This lack of transparency can undermine trust in the cloud environment and may deter some organizations from fully utilizing cloud services.

In contrast, high upfront costs, increased onsite hardware, and limited access to data are generally not accurate risks for cloud computing. One of the main benefits of cloud computing is the reduction in upfront costs since services can often be acquired on a subscription basis without the need for significant investment in physical infrastructure. Additionally, cloud computing typically decreases the reliance on onsite hardware, as data and applications can be accessed remotely. Finally, access to data is usually enhanced in a cloud environment, as it

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