Question

After identifying the threats, the CPA should consider ______ that can eliminate the threat or reduce it to an acceptable level. There are 3 basic categories of these

Answer 1

The CPA should consider safeguards that can address and mitigate threats. These come in three categories: preventive, detective, and corrective.

Step-by-step explanation:

After identifying the threats, the CPA should consider safeguards that can eliminate the threat or reduce it to an acceptable level. There are 3 basic categories of these safeguards:

• Preventive safeguards - measures that help avoid the occurrence of an unwanted event
• Detective safeguards - designed to discover unwanted events quickly after they occur
• Corrective safeguards - aimed at restoring systems after an event has occurred

These safeguards are essential for maintaining integrity, objectivity, and confidentiality in the accounting profession and are an integral part of a CPA's risk management strategy.