When Implementing Preventative or Detective Controls

question 40

Multiple Choice

When implementing preventative or detective controls:

• A) 75% of the money should be invested in detective controls.
• B) Half of all control funds should be spent on preventative controls.
• C) The costs associated with them should be weighed against the benefits.
• D) For every preventative or detective control, one corrective control should be implemented.

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Definitions:

Underwriting Securities

The process by which investment banks and other financial entities agree to buy and sell securities to the public, assuming the risk of selling them.

Syndicate

A group of individuals or organizations combined to promote some common interest, often used in reference to underwriting groups for securities offerings.