An IS auditor is reviewing a project to implement a payment system between a parent bank and a subsidiary.
The IS auditor should FIRST verify that the:

A.
technical platforms between the two companies are interoperable.

B.
parent bank is authorized to serve as a service provider.

C.
security features are in place to segregate subsidiary trades.

D.
subsidiary can join as a co-owner of this payment system.

Explanation:
Even between parent and subsidiary companies, contractual agreement(s) should be in place to conduct
shared services. This is particularly important in highly regulated organizations such as banking. Unless granted
to serve as a service provider, it may not be legal for the bank to extend business to the subsidiary companies.
Technical aspects should always be considered; however, this can be initiated after confirming that the parent
bank can serve as a service provider. Security aspects are another important factor; however, this should be
considered after confirming that the parent bank can serve as a service provider. The ownership of the
payment system is not as important as the legal authorization to operate the system.