Question

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.

Answer 1

Multifactor authentication, physical security, and encryption should be used to reduce the risk of unauthorized disclosure of financial statements. Therefore the correct answer is D) All of the above.

Step-by-step explanation:

The control procedures that should be used to reduce the risk of unauthorized disclosure of financial statements include:

1. Multifactor authentication: This involves using multiple types of verification, such as passwords and biometric information, to ensure that only authorized individuals can access the financial statements.
2. Physical security: This includes measures such as locked doors, security cameras, and restricted access areas to protect physical copies of the financial statements.
3. Encryption: This involves encoding the financial statements using encryption algorithms to prevent unauthorized access.

By implementing these control procedures, the risk of unauthorized disclosure of financial statements can be significantly reduced.