US CMA Part 1 · Chapter 5 · Question 4 of 23
A monthly bank reconciliation prepared by an employee who has no access to cash is an example of which type of control?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) A detective control
Explanation
Detective controls identify errors or irregularities after they have occurred; a bank reconciliation highlights unrecorded or unauthorized transactions after the fact. Preventive controls, such as authorization limits and passwords, aim to stop problems occurring in the first place.
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