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Which of the following statements about application controls is true? a. Organizations can have manual application controls or automated application controls, but not a combination of the two. b. Application controls are intended to mitigate risks associated with data input, data processing, and data output. c. Application controls are a part of the monitoring component of internal control. d. Self-checking digits are an output control.

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Answer:

The correct answer is letter "B": Application controls are intended to mitigate risks associated with data input, data processing, and data output.

Explanation:

Application controls are the set of strategies and systems companies implement to regulate the entry of input, how it is processed and stored, and for what purposes it is reused in the future. This security activity is important to minimize the risks of errors that could represent major losses for an entity.

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