Free IAPP CIPP-E Exam Questions

Question 1

A high-ranking employee has his laptop bag stolen in a train station. In addition to the laptop, the bag contained the employee’s ID card, confidential company documents (such as financial information and minutes of board meetings, including participants and their roles), company payment cards, and authorization tokens.

As the company's Data Protection Officer, what should be your first action?

A : Inform the appropriate supervisory authority of the breach.

B : Verify whether the laptop contained personal data and, if so, if it was encrypted.

C : Inform the meeting participants of the breach and provide them with next steps to be taken.

D : Request deactivation of the authorization tokens to avoid access to company data, and remotely wipe the laptop.

Answer: B

Question 2

Which of the following does NOT have to be included in the records most processors must maintain in relation to their data processing activities?

A : me and contact details of each controller on behalf of which the processor is acting

B : tegories of processing carried out on behalf of each controller for which the processor is acting.

C : tails of transfers of personal data to a third country carried out on behalf of each controller for which the processor is acting.

D : tails of any data protection impact assessment conducted in relation to any processing activities carried out by the processor on behalf of each controller for which the processor is acting.

Answer: C

Question 3

Which of the following demonstrates compliance with the accountability principle found in Article 5, Section 2 of the GDPR?

A : Anonymizing special categories of data.

B : nducting regular audits of the data protection program.

C : tting consent from the data subject for a cross border data transfer.

D : crypting data in transit and at rest using strong encryption algorithms.

Answer: B

Question 4

Which failing of Privacy Shield, cited by the CJEU as a reason for its invalidation, is the Trans-Atlantic Data Privacy Framework intended to address?

A : Data Subject Rights.

B : Right of Action.

C : Necessity.

D : Consent.

Answer: B

Question 5

SCENARIO

Please use the following to answer the next question: You have just been hired by a toy manufacturer based in Hong Kong. The company sells a broad range of dolls, action figures and plush toys that can be found internationally in a wide variety of retail stores. Although the manufacturer has no offices outside Hong Kong and in fact does not employ any staff outside Hong Kong, it has entered into a number of local distribution contracts. The toys produced by the company can be found in all popular toy stores throughout Europe, the United States and Asia. A large portion of the company's revenue is due to international sales.

The company now wishes to launch a new range of connected toys, ones that can talk and interact with children. The CEO of the company is touting these toys as the next big thing, due to the increased possibilities offered: The figures can answer children's questions on various subjects, such as mathematical calculations or the weather. Each figure is equipped with a microphone and speaker and can connect to any smartphone or tablet via Bluetooth. Any mobile device within a 10-meter radius can connect to the toys via Bluetooth as well. The figures can also be associated with other figures (from the same manufacturer) and interact with each other for an enhanced play experience.

When a child asks the toy a question, the request is sent to the cloud for analysis, and the answer is generated on cloud servers and sent back to the figure. The answer is given through the figure's integrated speakers, making it appear as though that the toy is actually responding to the child's question. The packaging of the toy does not provide technical details on how this works, nor does it mention that this feature requires an internet connection. The necessary data processing for this has been outsourced to a data center located in South Africa. However, your company has not yet revised its consumer-facing privacy policy to indicate this.

In parallel, the company is planning to introduce a new range of game systems through which consumers can play the characters they acquire in the course of playing the game. The system will come bundled with a portal that includes a Near-Field Communications (NFC) reader. This device will read an RFID tag in the action figure, making the figure come to life onscreen. Each character has its own stock features and abilities, but it is also possible to earn additional ones by accomplishing game goals. The only information stored in the tag relates to the figures' abilities. It is easy to switch characters during the game, and it is possible to bring the figure to locations outside of the home and have the character's abilities remain intact.

What presents the BIGGEST potential privacy issue with the company's practices?

A : NFC portal can read any data stored in the action figures

B : information about the data processing involved has not been specified

C : cloud service provider is in a country that has not been deemed adequate

D : RFID tag in the action figures has the potential for misuse because of the toy's evolving capabilities

Answer: B