Detective controls include ________.
A)separating the duties of cash collection from the duties of recording cash transactions in the books
B)bank reconciliations (comparing the company's accounting records for cash to its bank statement)
C)limiting access to assets
D)requiring passwords to access the computerized accounting records

Question

Quizplus · Accepted Answer

Detective controls are designed to identify and alert the organization to errors, fraud, or other issues after they have occurred. Bank reconciliations are a form of detective control because they involve comparing the company's accounting records for cash to its bank statement to identify discrepancies. Choices A, C, and D are examples of preventive controls, which are designed to prevent errors or fraud from occurring in the first place.

Detective Controls Include ________