Assume that a company designs and implements a control procedure whereby the accountant who 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 as it aims to prevent errors and fraud by limiting access to the cash to the accountant responsible for recording cash receipts transactions. Detective controls are designed to discover errors and fraud after they have occurred, corrective controls are aimed at fixing problems that have already occurred, and feedback controls are designed to provide information about the performance of a system or process.

Assume That a Company Designs and Implements a Control Procedure