What Control Procedure(s)should Be Used to Reduce the Risk of Unauthorized

question 71

Multiple Choice

What control procedure(s) should be used to reduce the risk of unauthorized disclosure of the financial statements?

• A)Multifactor authentication.
• B)Physical security.
• C)Encryption.
• D)All of the above.

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Definitions:

Agency Ends

The termination or conclusion of an agency relationship between principal and agent, which can occur through various means such as completion of the agency purpose, by mutual agreement, or by law.

Duty of Segregation

An obligation to keep different tasks and responsibilities separate to reduce conflicts of interest or the risk of fraud or error.

Fiduciary Duty

A legal obligation of one party to act in the best interest of another when entrusted with care of money, property, or confidential information.

Actual Authority

The express and implied powers a principal intentionally grants to an agent, allowing them to act on the principal's behalf.