Which of the following is NOT an example of a detective control?
A) A firm performs a physical inventory count monthly and compares the count to totals in the inventory system.
B) Store managers count the cash drawer nightly and reconcile the cash with sales for the day.
C) A manufacturing firm requires that purchases are recorded, approved, and received by different employees.
D) An accounting firm programs the digital dashboard to show abnormal account balances in bold red to draw attention to them.

Question

Quizplus · Accepted Answer

Detective controls are designed to identify and alert the occurrence of an error, irregularity, or deviation after it has occurred. Choices A, B, and D are examples of detective controls as they involve reviewing and verifying transactions or balances after the fact to detect any discrepancies. Choice C, however, describes a segregation of duties, which is a preventive control designed to prevent errors or fraud by requiring more than one person to complete certain tasks.

Which of the Following Is NOT an Example of a Detective