A Value-Added Network (VAN) is a private, third-party managed network that provides secure electronic data interchange (EDI) and other communication services between business partners. VANs offer enhanced security, reliability, and efficiency in transmitting business-critical data, making them ideal for companies engaged in manufacturing and distribution that require secure and structured communication channels with trading partners.
Secure Network for Business Partners: The scenario describes a network that facilitates EDI between a company and its trading partners. A VAN specializes in providing secure and structured business communications.
Enhanced Efficiency and Customer Service: VANs streamline business operations by reducing transaction errors, improving order fulfillment, and increasing operational efficiencies.
Third-Party Management: Unlike traditional internal networks, VANs are managed by external service providers that offer additional security, compliance, and encryption measures.
Alignment with Internal Auditing Standards: The IIA emphasizes the importance of secure and reliable communication networks in governance, risk management, and internal controls. Secure data exchanges through a VAN mitigate risks associated with unauthorized access and data breaches.
B. A Local Area Network (LAN): LANs are confined to a limited geographical area, such as an office or a factory, and are used for internal communication rather than secure external partner communication.
C. A Metropolitan Area Network (MAN): MANs connect multiple LANs within a city or a metropolitan region but are not specifically designed for business-to-business data exchange.
D. A Wide Area Network (WAN): While WANs connect geographically dispersed networks, they do not inherently provide the secure, structured EDI services that a VAN does.
IIA Standard 2110 - Governance: Emphasizes the importance of IT governance and secure communication channels in protecting business data.
IIA Standard 2120 - Risk Management: Highlights the need for secure data transmission to mitigate cyber risks.
IIA Standard 2201 - Planning the Engagement: Requires auditors to assess IT infrastructure, including networks used for business operations.
COBIT Framework (Control Objectives for Information and Related Technologies): Supports the use of secure, managed networks like VANs for business data exchange.
Key Reasons Why Option A is Correct:Why Other Options Are Incorrect:IIA References:Thus, the correct answer is A. A Value-Added Network (VAN).
