What does purpose limitation require regarding data processing?

Prepare for the Information Systems and Controls (ISC) CPA Exam. Study with flashcards and multiple-choice questions, each with hints and explanations. Get ready to excel!

Purpose limitation is a fundamental principle in data protection and privacy regulations, such as the General Data Protection Regulation (GDPR). This principle mandates that data collected and processed by organizations must be for clearly defined, explicit, and legitimate purposes. This means that when data is gathered, the organization must have a specific reason for needing that information and should communicate this purpose to the data subjects (the individuals whose data is being processed).

By adhering to this principle, organizations are held accountable and must limit their data processing activities to only what is necessary to fulfill the designated purpose. This approach not only protects individuals' privacy rights by preventing unnecessary or unauthorized use of their data but also fosters transparency and trust between organizations and individuals. Compliance with purpose limitation is essential for creating responsible data management policies and practices.

In contrast, options suggesting that data can be processed for any available purpose, or that it should be unrestricted to allow flexibility, contradict the essence of purpose limitation, which emphasizes the importance of intention and clarity in data processing. Similarly, while relevance and adequacy are important aspects of data processing, they do not fully encapsulate the requirement of having specific, legitimate purposes for data usage.

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