An organization has a new regulatory requirement to implement corrective controls on a financial system. Which of the following is the most likely reason for the new requirement?
A.
To defend against insider threats altering banking details
B.
To ensure that errors are not passed to other systems
C.
To allow for business insurance to be purchased
D.
To prevent unauthorized changes to financial data
B. To ensure that errors are not passed to other systems
Explanation:
✔ Corrective controls are designed to identify and fix issues after they occur, ensuring that errors do not propagate to other systems.
✔ In a financial system, errors can lead to incorrect transactions, misstatements, or compliance violations.
✔ Regulatory requirements often mandate corrective controls to detect, log, and rectify mistakes before they cause widespread issues.
Why not the other options?
A. To defend against insider threats altering banking details – This relates more to preventive and detective controls rather than corrective controls.
C. To allow for business insurance to be purchased – Compliance may influence insurance policies, but corrective controls are primarily implemented for operational and regulatory integrity.
D. To prevent unauthorized changes to financial data – Preventing changes is a preventive control, whereas corrective controls focus on identifying and fixing errors post-occurrence.
Corrective controls in this context are designed to rectify errors or unauthorized modifications after they have occurred, ensuring the integrity and reliability of financial data. This aligns with regulatory goals to maintain accurate financial reporting and compliance with laws that protect against fraud, mismanagement, or other forms of financial data tampering.
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Highly Voted 2 months, 3 weeks agoNahidwin
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