CISA Certified Information Systems Auditor – Question1760

Which of the following insurance types provide for a loss arising from fraudulent acts by employees?

A.
Business interruption
B. Fidelity coverage
C. Errors and omissions
D. Extra expense

Correct Answer: B

Explanation:

Explanation:
Fidelity insurance covers the loss arising from dishonest or fraudulent acts by employees. Business interruption insurance covers the loss of profit due to the disruption in the operations of an organization. Errors and omissions insurance provides legal liability protection in the event that the professional practitioner commits an act that results in financial loss to a client. Extra expense insurance is designed to cover the extra costs of continuing operations following a disaster/disruption within an organization.