CIMA BA4 · Chapter 7 · Question 8 of 10
Which of the following describes a 'detective' control?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) A monthly bank reconciliation that identifies unrecorded or incorrect transactions
Explanation
Detective controls identify errors or irregularities after they have occurred, such as reconciliations and exception reports. Passwords, training and physical locks are preventive controls designed to stop problems happening in the first place.
More Internal control, risk and audit MCQs
- Q10Which statement about the board's responsibility for risk management in a listed company is most consistent with good governance practice?
- Q1Which of the following is NOT one of the five components of internal control in the COSO framework?
- Q2Who is ultimately responsible for a company's system of internal control?
- Q3Requiring two separate people to authorise and record a payment is an example of which type of control?
- Q4Which of the following best describes the 'control environment'?