In: Accounting
The master inventory file, contained on a removable magnetic disk, was destroyed by a small fire next to the area where it was stored. The company had to take a special complete inventory in order to reestablish the file. The best control procedure would be:
a. fire insurance
b. data processing insurance
c. a copy of the disk
d.Remote storage of a copy of the disk and the transactions since the disk was copied
d.Remote storage of a copy of the disk and the transactions since the disk was copied
The company could have stored a copy of data and keep it in another place so that they can use it in case of emergency. the insurance cannot replace the data which was lost.