Assume that a company designs and implements a control procedure whereby the accountant that is responsible for recording cash receipts transactions does not have access to the cash itself.This control procedure is an example of a:
A)Detective control
B)Preventive control
C)Corrective control
D)Feedback control

Question

Quizplus · Accepted Answer

This control procedure is an example of a preventive control because it aims to prevent errors or fraud by segregating duties. By not allowing the accountant who records cash receipts to have access to the cash, the company reduces the risk of misappropriation of funds.

Assume That a Company Designs and Implements a Control Procedure