ACCA BT · Chapter 8 · Question 5 of 11
Which of the following is an example of a detective control rather than a preventive control?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) A monthly bank reconciliation reviewed by the financial controller
Explanation
Detective controls identify errors or irregularities after they have occurred, as a bank reconciliation does by highlighting unexplained differences. Dual signatures, restricted access to the warehouse and passwords are preventive controls that stop unauthorised transactions or access from happening in the first place.
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