A company stores sensitive financial reports in an Amazon S3 bucket.

AWS KMS with SSE-KMS provides granular key management and auditability. All use of KMS keys is logged in AWS CloudTrail, which allows compliance teams to monitor encryption and decryption operations. A bucket policy can be configured to enforce uploads only with the designated KMS key, ensuring that users cannot bypass encryption or change methods. Option A (SSE-S3 with bucket policy) enforces encryption but does not provide the same level of control or auditable key usage. Option C (client-side encryption) increases complexity and key management burden. Option D prevents bucket setting changes but does not prevent unencrypted uploads. Therefore, B ensures the most granular control, auditability, and compliance with financial data requirements.