ICAEW ARF · Chapter 4 · Question 3 of 12
Which of the following is a detective control rather than a preventive control?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Monthly reconciliation of purchase ledger balances to supplier statements
Explanation
A detective control identifies errors or irregularities after they have happened, so that they can be corrected. Reconciling supplier statements reveals differences already recorded in the ledger. Authorising orders, restricting access and credit checks all operate before the transaction or event, so they are preventive.
More Internal control systems and IT controls MCQs
- Q5Which of the following is an IT general control?
- Q6A computerised sales system performs a sequence check on sales invoice numbers. What is the main purpose of this control?
- Q7Two cheque signatories, each required to approve every payment, agree together to sign payments to a fictitious supplier they have set up…
- Q8Which of the following is a test of control?
- Q9How should an auditor communicate significant deficiencies in internal control identified during an audit?