Exam CISA topic 1 question 608 discussion

B. "Dual control by system" is also an effective approach, but its effectiveness depends on how it is specifically implemented. Typically, dual control by system refers to a mechanism in which different departments or roles take turns auditing and approving. However, for this to provide sufficient security, it needs to be properly managed and implemented. Overall, the most recommended method for preventing wire transfer fraud is A. Two-factor authentication control.

System-enforced dual control is the BEST method to prevent wire transfer fraud by bank employees. Dual control involves requiring the involvement of two or more individuals to complete a critical or sensitive task. In the context of wire transfers, system-enforced dual control would mean that two or more authorized individuals are required to approve and execute a wire transfer. This control helps mitigate the risk of fraud because it ensures that no single individual has the ability to initiate and complete a wire transfer independently. Even if one person's credentials are compromised, an additional layer of approval is needed, adding an extra barrier to fraudulent activities.