Certified in Risk and Information Systems Control (CRISC) — Question 797

A financial institution has identified high risk of fraud in several business applications. Which of the following controls will BEST help reduce the risk of fraudulent internal transactions?

Answer options

Correct answer: A

Explanation

Segregation of duties is essential in preventing fraud by ensuring that no single individual has control over all aspects of any critical transaction, thus reducing the opportunity for internal fraud. While periodic internal audits, log monitoring, and periodic user privileges review are important controls, they do not directly prevent an individual from committing fraud if they have the authority to perform all necessary tasks.