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AFP CTP Question # 48 Topic 5 Discussion

CTP Exam Topic 5 Question 48 Discussion:
Question #: 48
Topic #: 5

The treasury department of a company uses a hosted treasury management system (TMS) to manage cash, debt, and investments. Because the system is hosted, the company must monitor the financial service provider (FSP) to ensure there are appropriate controls in place to mitigate any operational risk. How can the FSP assure the treasury department that they have effective controls in place to mitigate operational risk?


A.

Send a copy of the SOC 1 report.


B.

Require multifactor authentication.


C.

Use public-key infrastructure (PKI) encryption for all data transfers.


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