Which of the following is a detective control?
Answer and explanation
Correct answer: B. A bank reconciliation reviewed by an independent accountant
- Step 1: Preventive controls stop errors before they happen, while detective controls find errors after they have occurred.
- Step 2: A reconciliation finds differences between the cash book and the bank after transactions were recorded.
Answer
A bank reconciliation reviewed by an independent accountant.
Why not the others: Two signatures stop an unauthorised payment being made, so they are preventive. Passwords prevent unauthorised access, so they are preventive. Numbered orders prevent unrecorded or duplicate orders, so they are preventive.
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