CRISC: Certified in Risk and Information Systems ControlDemo

By Isaca · Question Mode

QuestionQ404

Risk Response and Reporting

During a risk assessment at a financial institution, a risk practitioner finds that tellers can both initiate and approve transactions of significant value. This team is also responsible for ensuring that transactions are recorded and balances reconciled by the end of the day. Which of the following is the BEST recommendation by the risk practitioner to mitigate the associated risk?

  • A Require a code of ethics.
  • B Implement continuous monitoring.
  • C Implement segregation of duties.
  • D Require a second level of approval.
Explanation

Segregation of duties prevents one individual or team from controlling incompatible transaction functions. Authorization or approval, recording, and verification or reconciliation should be separated so that errors or fraud cannot readily be both committed and concealed.

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