Which of the following internal controls is essential to protect sensitive pricing information?

Which of the following internal controls is essential to protect sensitive pricing information?

• A. Identification and authentication
• B. Authentication and authorization
• C. Segregation of duties (SoD) and authorization
• D. Availability and confidentiality

Answer: (B)

The correct answer highlights the importance of both authentication and authorization in safeguarding sensitive pricing information. Authentication involves verifying the identity of users who access specific data systems, ensuring that only individuals with the proper credentials can view or manipulate sensitive information. This step is critical to prevent unauthorized access, which could lead to data breaches or mishandling of sensitive pricing details. Authorization, on the other hand, defines what authenticated users are allowed to do within the system. It establishes permissions related to viewing, editing, or sharing data, ensuring that even if someone gains access, they are limited to their authorized actions. This combination of authentication and authorization creates a robust defense against both insider threats and external attacks, effectively protecting the integrity and confidentiality of sensitive pricing information. Together, these controls ensure that only the right individuals have access to sensitive data and that they can only perform actions aligned with their designated roles, making it a vital internal control for protecting sensitive pricing information.

The correct answer highlights the importance of both authentication and authorization in safeguarding sensitive pricing information. Authentication involves verifying the identity of users who access specific data systems, ensuring that only individuals with the proper credentials can view or manipulate sensitive information. This step is critical to prevent unauthorized access, which could lead to data breaches or mishandling of sensitive pricing details.

Authorization, on the other hand, defines what authenticated users are allowed to do within the system. It establishes permissions related to viewing, editing, or sharing data, ensuring that even if someone gains access, they are limited to their authorized actions. This combination of authentication and authorization creates a robust defense against both insider threats and external attacks, effectively protecting the integrity and confidentiality of sensitive pricing information.

Together, these controls ensure that only the right individuals have access to sensitive data and that they can only perform actions aligned with their designated roles, making it a vital internal control for protecting sensitive pricing information.