A checksum is classified as a detective control. A checksum is a mathematical value that is calculated from a data set and used to verify the integrity of the data. A checksum can detect if the data has been altered or corrupted during transmission or storage. A checksum does not prevent or correct the data corruption, but it alerts the user or system of the problem. Therefore, it is a detective control. A preventive control is a control that prevents an error or incident from occurring. A corrective control is a control that restores normal operations after an error or incident has occurred. An administrative control is a control that involves policies, procedures, standards, guidelines, or organizational structures. References: CISA Review Manual (Digital Version)1, page 439.

The best way to verify the effectiveness of a data restoration process is to perform periodic complete data restorations. This is the process of transferring backup data to the primary system or data center and verifying that the restored data is accurate, complete, and functional. By performing periodic complete data restorations, the auditee can test the reliability and validity of the backup data, the functionality and performance of the restoration tools and procedures, and the compatibility and integrity of the restored data with the primary system. This will also help identify and resolve any issues or errors that may occur during the restoration process, such as corrupted or missing files, incompatible formats, or configuration problems.
Performing periodic reviews of physical access to backup media (option A) is not the best way to verify the effectiveness of a data restoration process, as it only ensures the security and availability of the backup media, not the quality or usability of the backup data. Physical access reviews are important for preventing unauthorized access, theft, damage, or loss of backup media, but they do not test the actual restoration process or verify that the backup data can be successfully restored.
Validating offline backups using software utilities (option C) is also not the best way to verify the effectiveness of a data restoration process, as it only checks the integrity and consistency of the backup data, not the functionality or compatibility of the restored data. Software utilities can help detect and correct any errors or inconsistencies in the backup data, such as checksum errors, duplicate files, or incomplete backups, but they do not test the actual restoration process or verify that the restored data can work with the primary system.
Reviewing and updating data restoration policies annually (option D) is also not the best way to verify the effectiveness of a data restoration process, as it only ensures that the policies are current and relevant, not that they are implemented and followed. Data restoration policies are important for defining roles and responsibilities, objectives and scope, standards and procedures, and metrics and reporting for the restoration process, but they do not test the actual restoration process or verify that it meets the expected outcomes.
Therefore, option B is the correct answer.
References:
* What is backup and disaster recovery? | IBM
* Backup and Recovery of Data: The Essential Guide | Veritas
* Database Backup and Recovery Best Practices - ISACA

This is because privacy regulations are laws or rules that protect the personal information of individuals from unauthorized access, use, disclosure, or transfer by third parties. Payroll audit documentation may contain sensitive and confidential data, such as employee names, salaries, benefits, taxes, deductions, and bank accounts. If the audit management application is hosted by a third party in a different country, the organization may need to comply with the privacy regulations of both its own country and the host country, as well as any international or regional agreements or frameworks that apply. Privacy regulations may impose various requirements and obligations on the organization, such as obtaining consent from the data subjects, implementing appropriate security measures, notifying data breaches, and ensuring data quality and accuracy.
Privacy regulations may also grant various rights to the data subjects, such as accessing, correcting, deleting, or transferring their data. Failing to comply with privacy regulations may expose the organization to significant risks and consequences, such as legal actions, fines, sanctions, reputational damage, or loss of trust.
Some examples of privacy regulations affecting the organization are:
* The General Data Protection Regulation (GDPR), which is a comprehensive and strict privacy regulation that applies to anyorganization that processes personal data of individuals in the European Union (EU) or offers goods or services to them, regardless ofwhere the organization or the data is located1.
* The California Consumer Privacy Act (CCPA), which is a broad and influential privacy regulation that applies to any organization that collectspersonal information of California residentsand meets certain thresholds of revenue, data volume, or data sharing2.
* The Health Insurance Portability and Accountability Act (HIPAA), which is a sector-specific privacy regulation that applies to any organization that handles protected health information(PHI) of individuals in the United States, such as health care providers, health plans, or health care clearinghouses3.
Therefore, before using an audit management application hosted by a third party in a different country, the internal audit team should conduct a thorough assessment of the privacy regulations affecting the organization and ensure that they have adequate policies, procedures, and controls in place to comply with them.

The results of the previous audit are an important source of information for an IS auditor to consider when performing the risk assessment prior to an audit engagement, as they can provide insights into the current state and performance of the auditee, identify any issues or gaps that need to be followed up or addressed, and highlight any areas that require special attention or focus. The design of controls is an important factor to evaluate during an audit engagement, but it is not the most important thing to consider when performing the risk assessment prior to an audit engagement, as it does not reflect the actual implementation or effectiveness of the controls. Industry standards and best practices are useful benchmarks or guidelines for an IS auditor to compare or measure against during an audit engagement, but they are not the most important thing to consider when performing the risk assessment prior to an audit engagement, as they may not be applicable or relevant to the specific context or objectives of the auditee. The amount of time since the previous audit is a relevant criterion to determine the frequency or timing of an audit engagement, but it is not the most important thing to consider when performing the risk assessment prior to an audit engagement, as it does not indicate the level or nature of risk associated with the auditee.