Which statement about internal controls over cash is correct?

Question

Quizplus · Accepted Answer

Controls should restrict sales staff ability to modify or delete accounts receivable to prevent fraud or errors in recording sales transactions. Preventive controls are designed to stop problems before they occur, so statement A is incorrect. A bank reconciliation is a detective control rather than preventive, as it identifies discrepancies after the fact. Credit notes may be necessary to record customer refunds, so statement D is incorrect.

Which Statement About Internal Controls Over Cash Is Correct