Which of the following is a preventive control?
A) Reconciliation of a bank account.
B) Recalculation of a sample of payroll entries by internal auditors.
C) Separation of duties between the payroll and personnel departments.
D) Detailed fluctuation analysis completed by the CFO for revenue.

Question

Quizplus · Accepted Answer

Separation of duties is a preventive control because it is designed to prevent errors or fraud from occurring in the first place by ensuring that multiple individuals are involved in a process and can act as checks and balances on one another's work. The other options listed are detective controls, which are designed to detect errors or fraud after they have occurred.

Which of the Following Is a Preventive Control