Banking · Computerized Accounting System
During a BCP simulation at a bank, a major fiber-optic link failure disconnected 40 percent of the branches for 6 hours. During this period, branch managers allowed 'Offline Posting' where transactions were recorded in local spreadsheets to be uploaded later upon reconnection. When the network was restored, it was found that some uploaded entries exceeded cash-in-hand limits and incorrect amounts were credited to customer accounts. Based on this scenario, what is the most significant risk to the bank's Computerized Accounting System when resorting to 'Offline Mode' during a network failure?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The risk that the fiber-optic cable cannot be repaired by the local telecom provider.
- 2The physical wear and tear on the branch computers while they are not connected to the internet.
- 3The breakdown of real-time Application Controls and Validation Checks, leading to data inconsistency and potential fraud.✓
- 4The high cost of hiring extra staff to type the spreadsheet data into the CBS.
Correct answer
The breakdown of real-time Application Controls and Validation Checks, leading to data inconsistency and potential fraud.
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