An auditor carrying out a compliance audit requests passwords that are encrypted in the system...

 The best response to the auditor is to demonstrate that the system enforces the password policy and does not allow non-compliant passwords to be created. This way, the auditor can verify the compliance without compromising the confidentiality or integrity of the encrypted passwords. Providing the encrypted passwords and analysis tools to the auditor (A) may expose the passwords to unauthorized access or modification. Analyzing the encrypted passwords for the auditor and showing them the results (B) may not be sufficient to convince the auditor of the compliance, as the results could be manipulated or falsified. Demonstrating that non-compliant passwords cannot be encrypted in the system (D) is not a valid response, as encryption does not depend on the compliance of the passwords. References: CISSP All-in-One Exam Guide, Eighth Edition, Chapter 5, page 241; Official (ISC)2 CISSP CBK Reference, Fifth Edition, Chapter 5, page 303.