A department purchased one copy of a software program for internal use.

Software licenses commonly permit the purchaser to make one backup copy for protection against loss or damage, provided it is not used as an additional installed copy. Copy 1, made solely for backup purposes, is therefore generally legal. Copy 2, made for use by another member of the department, is not legal unless the license permits multiple installations or concurrent users. Making an additional working copy without authorization violates license terms and copyright law. Internal auditors should review software asset management controls, license inventories, installation monitoring, procurement records, and user awareness. Unauthorized copying exposes the organization to legal penalties, vendor claims, reputational damage, and compliance findings. Therefore, only Copy 1 is legal, making Option B correct.