CRYPTOCURRENCY SECURITY STANDARD (CCSS) AUDITOR
PRACTICE EXAM LATEST QUESTIONS AND CORRECT ANSWERS
GRADE A
**Total Questions: 100**
**Format: Multiple Choice (4 options each)**
1. **The Crypto Currency Security Standard (CCSS) is primarily designed to:**
A) Provide investment advice for cryptocurrencies
B) Establish a security framework for systems that handle cryptocurrency transactions
C) Regulate cryptocurrency exchanges globally
D) Standardize cryptocurrency wallet addresses
**ANSWER: B**
**EXPLANATION:** The CCSS is a set of requirements for all information systems that
make use of cryptocurrencies, designed to standardize security practices and provide
guidance for auditing such systems.
2. **The CCSS is organized into which three levels of assurance?**
A) Basic, Intermediate, Advanced
B) Level I, Level II, Level III
C) Bronze, Silver, Gold
D) Low, Medium, High
**ANSWER: B**
**EXPLANATION:** CCSS defines three increasing levels of security: Level I (essential
safeguards), Level II (proven controls), and Level III (enhanced diligence and reporting).
,3. **The scope of a CCSS audit typically includes:**
A) Only the cold storage wallets
B) All information systems that store, accept, or transmit cryptocurrency transactions
C) Only the exchange's user interface
D) The marketing and financial performance of the organization
**ANSWER: B**
**EXPLANATION:** The scope encompasses the entire "cryptocurrency environment" —
any system component involved in generating, storing, or transmitting cryptocurrency
transaction data.
4. **A "Private Key" in cryptocurrency is:**
A) A publicly shared address for receiving funds
B) A secret number that allows cryptocurrency to be spent
C) The hash of a public key
D) The same as a wallet seed phrase
**ANSWER: B**
**EXPLANATION:** A private key is a secret piece of data that proves ownership and
enables the signing of transactions to spend associated funds. Compromise of a private
key equates to loss of funds.
5. **The CCSS requirement for "Key Generation" mandates that cryptographic keys must
be generated:**
A) On an internet-connected computer for speed
B) Using a cryptographically secure pseudo-random number generator (CSPRNG)
C) Using a user's personal information for memorability
,D) Only by third-party services
**ANSWER: B**
**EXPLANATION:** Key generation must use a strong source of randomness (CSPRNG) to
prevent predictability and ensure key strength. Insecure randomness is a common source
of key compromise.
6. **"Key Storage" at CCSS Level II requires that plaintext private keys:**
A) Can be stored on a system administrator's desktop
B) Must never be stored on internet-connected systems
C) May be emailed for backup purposes
D) Must be printed and stored in a filing cabinet
**ANSWER: B**
**EXPLANATION:** A core tenet of key security is that plaintext private keys should never
reside on online systems. They should be stored offline (cold storage) or encrypted with
strong controls.
7. **A "Multi-signature" (multisig) wallet is designed to:**
A) Increase transaction speed
B) Require multiple private keys to authorize a transaction, distributing control and trust
C) Work only with Bitcoin
D) Reduce transaction fees
**ANSWER: B**
**EXPLANATION:** Multisig wallets require m-of-n signatures (e.g., 2-of-3) to spend funds.
This eliminates single points of failure, enables escrow, and is a key control in the CCSS for
key management.
, 8. **"Key Usage" requirements in CCSS dictate that systems should:**
A) Reuse the same key for all transactions to simplify operations
B) Use separate keys for separate contexts (e.g., hot wallet vs. cold storage)
C) Never rotate keys
D) Use short keys for efficiency
**ANSWER: B**
**EXPLANATION:** Key segregation limits the impact of a compromise. Keys used for high-
risk functions (hot wallets) should be different from those used for long-term storage (cold
wallets).
9. **The "Key Compromise Protocol" is a required policy that defines steps to be taken
when a private key is suspected to be compromised. It must include:**
A) Immediate transfer of all funds to a new key and revocation of the compromised key
B) Waiting for the next audit cycle
C) Public announcement on social media
D) Only internal investigation
**ANSWER: A**
**EXPLANATION:** The protocol must have clear, immediate actions to secure funds, such
as moving them to a secure key and rendering the compromised key unusable, to minimize
financial loss.
10. **"Keyholder Grant/Revoke Policies" ensure that:**
A) Only authorized individuals have access to keys, and access is promptly revoked upon
role change
B) Keys are freely shared among team members
PRACTICE EXAM LATEST QUESTIONS AND CORRECT ANSWERS
GRADE A
**Total Questions: 100**
**Format: Multiple Choice (4 options each)**
1. **The Crypto Currency Security Standard (CCSS) is primarily designed to:**
A) Provide investment advice for cryptocurrencies
B) Establish a security framework for systems that handle cryptocurrency transactions
C) Regulate cryptocurrency exchanges globally
D) Standardize cryptocurrency wallet addresses
**ANSWER: B**
**EXPLANATION:** The CCSS is a set of requirements for all information systems that
make use of cryptocurrencies, designed to standardize security practices and provide
guidance for auditing such systems.
2. **The CCSS is organized into which three levels of assurance?**
A) Basic, Intermediate, Advanced
B) Level I, Level II, Level III
C) Bronze, Silver, Gold
D) Low, Medium, High
**ANSWER: B**
**EXPLANATION:** CCSS defines three increasing levels of security: Level I (essential
safeguards), Level II (proven controls), and Level III (enhanced diligence and reporting).
,3. **The scope of a CCSS audit typically includes:**
A) Only the cold storage wallets
B) All information systems that store, accept, or transmit cryptocurrency transactions
C) Only the exchange's user interface
D) The marketing and financial performance of the organization
**ANSWER: B**
**EXPLANATION:** The scope encompasses the entire "cryptocurrency environment" —
any system component involved in generating, storing, or transmitting cryptocurrency
transaction data.
4. **A "Private Key" in cryptocurrency is:**
A) A publicly shared address for receiving funds
B) A secret number that allows cryptocurrency to be spent
C) The hash of a public key
D) The same as a wallet seed phrase
**ANSWER: B**
**EXPLANATION:** A private key is a secret piece of data that proves ownership and
enables the signing of transactions to spend associated funds. Compromise of a private
key equates to loss of funds.
5. **The CCSS requirement for "Key Generation" mandates that cryptographic keys must
be generated:**
A) On an internet-connected computer for speed
B) Using a cryptographically secure pseudo-random number generator (CSPRNG)
C) Using a user's personal information for memorability
,D) Only by third-party services
**ANSWER: B**
**EXPLANATION:** Key generation must use a strong source of randomness (CSPRNG) to
prevent predictability and ensure key strength. Insecure randomness is a common source
of key compromise.
6. **"Key Storage" at CCSS Level II requires that plaintext private keys:**
A) Can be stored on a system administrator's desktop
B) Must never be stored on internet-connected systems
C) May be emailed for backup purposes
D) Must be printed and stored in a filing cabinet
**ANSWER: B**
**EXPLANATION:** A core tenet of key security is that plaintext private keys should never
reside on online systems. They should be stored offline (cold storage) or encrypted with
strong controls.
7. **A "Multi-signature" (multisig) wallet is designed to:**
A) Increase transaction speed
B) Require multiple private keys to authorize a transaction, distributing control and trust
C) Work only with Bitcoin
D) Reduce transaction fees
**ANSWER: B**
**EXPLANATION:** Multisig wallets require m-of-n signatures (e.g., 2-of-3) to spend funds.
This eliminates single points of failure, enables escrow, and is a key control in the CCSS for
key management.
, 8. **"Key Usage" requirements in CCSS dictate that systems should:**
A) Reuse the same key for all transactions to simplify operations
B) Use separate keys for separate contexts (e.g., hot wallet vs. cold storage)
C) Never rotate keys
D) Use short keys for efficiency
**ANSWER: B**
**EXPLANATION:** Key segregation limits the impact of a compromise. Keys used for high-
risk functions (hot wallets) should be different from those used for long-term storage (cold
wallets).
9. **The "Key Compromise Protocol" is a required policy that defines steps to be taken
when a private key is suspected to be compromised. It must include:**
A) Immediate transfer of all funds to a new key and revocation of the compromised key
B) Waiting for the next audit cycle
C) Public announcement on social media
D) Only internal investigation
**ANSWER: A**
**EXPLANATION:** The protocol must have clear, immediate actions to secure funds, such
as moving them to a secure key and rendering the compromised key unusable, to minimize
financial loss.
10. **"Keyholder Grant/Revoke Policies" ensure that:**
A) Only authorized individuals have access to keys, and access is promptly revoked upon
role change
B) Keys are freely shared among team members
