A bank reconciliation is a type of
A) preventative internal control
B) detective internal control
C) corrective internal control
D) deductive internal control

Question

Quizplus · Accepted Answer

A bank reconciliation is a detective internal control because it is used to identify discrepancies between a company's records and its bank statement. It is not a preventative control because it does not prevent errors or fraud from occurring, nor is it a corrective control because it does not correct errors after they have occurred. Similarly, it is not a deductive control because it does not deduct anything from the company's accounts.

A Bank Reconciliation Is a Type of