The correct answer is It narrows the authorization scope and streamlines the approval of the system.

Defining clear boundaries limits which hardware software data and personnel are part of the information system and therefore narrows the authorization scope and streamlines the approval of the system by reducing the set of controls and stakeholders that must be assessed and approved.

With a well defined scope the authorization process is more efficient because risk assessments and security reviews focus on a bounded set of assets and interfaces and the authorization package is simpler to assemble and maintain.

It makes it easier to demonstrate adherence to external laws and internal controls is not the best choice because clear boundaries can aid compliance efforts but the primary advantage is reducing what must be authorized rather than directly proving legal or control compliance.

It makes it simpler to identify and protect critical assets and sensitive data is incorrect because asset identification and protection depend on inventory classification and protection processes and not solely on where the system boundary is drawn.

It helps uncover potential vulnerabilities and areas of weakness within the system is wrong because vulnerability discovery comes from testing and assessment activities and not from boundary definition by itself.

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