Which of the following statements is true regarding preventive control procedures and detective control procedures?
A)They should be interrelated
B)If preventive controls exist, detective controls are unnecessary
C)If detective controls exist, preventive controls are unnecessary
D)Preventive controls should be cost effective, but detective controls do not need to be cost effective

Question

Quizplus · Accepted Answer

Preventive control procedures are designed to prevent errors or fraud from occurring in the first place, while detective control procedures are designed to identify errors or fraud that has already occurred. Both types of controls should be interrelated to ensure a comprehensive approach to risk management. Preventive controls aim to deter undesirable events before they happen, and detective controls aim to discover them if they do occur, making them complementary rather than mutually exclusive or independent in terms of necessity and cost-effectiveness.

Which of the Following Statements Is True Regarding Preventive Control