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    PracticeCPA®CPA ISC Practice Exam 2Question 49
    Hard1 markMultiple Choice
    Area II: SecurityRegulationsHIPAAArea II

    CPA · Question 49 · Area II: Security

    Under the HIPAA Security Rule, 'Encryption' is classified as an 'Addressable' implementation specification. What does 'Addressable' mean?

    Answer options:

    A.

    It is optional and can be ignored.

    B.

    It is mandatory in all circumstances.

    C.

    The entity must implement it if reasonable and appropriate, or implement an equivalent alternative, or document why it is not reasonable.

    D.

    It applies only to large organizations.

    How to approach this question

    Recall the HIPAA definition of Addressable vs. Required.

    Full Answer

    C.The entity must implement it if reasonable and appropriate, or implement an equivalent alternative, or document why it is not reasonable.✓ Correct
    Addressable specifications allow flexibility. If encryption isn't feasible, the entity must document why and implement an alternative safeguard that achieves the same protection.

    Common mistakes

    Thinking Addressable means Optional.
    Question 48All questionsQuestion 50

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