A Value-Added Network (VAN) is a third-party network service that securely connects an organization with its trading partners, facilitating secure electronic data interchange (EDI) and business communications.
(A) Value-added network (VAN). (Correct Answer)
A VAN is a private, managed network service that provides secure data transmission between business partners.
It is commonly used for B2B transactions, supply chain management, and EDI.
IIA GTAG 7 – IT Outsourcing recognizes VANs as critical third-party networks for secure business data exchange.
(B) Local area network (LAN).
Incorrect: A LAN connects computers within a limited area (e.g., an office or building), but it is not designed for external trading partner connections.
(C) Metropolitan area network (MAN).
Incorrect: A MAN covers a city or region, but it is not designed for B2B communication.
(D) Wide area network (WAN).
Incorrect: A WAN connects multiple geographic locations, but it is a general networking term, not specific to trading partner communications.
IIA GTAG 7 – IT Outsourcing: Discusses the use of third-party networks like VANs for secure data exchange.
IIA Standard 2110 – Governance: Recommends secure third-party integration for business continuity and security.
Analysis of Each Option:IIA References Supporting the Answer:Thus, the correct answer is (A) Value-Added Network (VAN) because it is specifically designed for secure communication between an organization and its trading partners.
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