What steps should you take to address the issue of a test data generation tool not adequately protecting sensitive financial information during a compliance audit, ensuring compliance?

In response to the discovery that the test data generation tool does not adequately protect sensitive financial information, the first step should be to evaluate and update the security measures of the tool. This may involve implementing encryption techniques, access controls, and other security features to ensure that financial data is properly safeguarded. Simply replacing the tool immediately may not address the underlying security issues and could disrupt ongoing testing activities. Increasing testing frequency may be necessary but does not directly address the compliance issue at hand. It's also important to notify regulatory authorities if sensitive financial information has been compromised to comply with reporting requirements.