Identify the detective control below. Approving customer credit prior to approvi
ID: 2525391 • Letter: I
Question
Identify the detective control below.
Approving customer credit prior to approving a sales order.
Ensuring that the employee who records cash received from customers does not also have access to the cash itself.
Reconciling the bank statement to the cash control account.
Maintaining frequent backup records to prevent loss of data.
Approving customer credit prior to approving a sales order.
Ensuring that the employee who records cash received from customers does not also have access to the cash itself.
Reconciling the bank statement to the cash control account.
Maintaining frequent backup records to prevent loss of data.
Explanation / Answer
Detective control is an internal control established to identify problem's within a company process and to identify the mistake or error or fraud easily .
Hence, Reconcilling the bank statement to the cash control account is a detective control because through reconcilling bank statement, it can be easily trace the entry which was not recorded in book but shown in Bank statement or vice versa.