Which of the following is an example of detective controls?

Account reviews and reconciliations, observations of payroll distribution, periodic physical inventory counts, passwords, transaction edits and internal auditors are all examples of detective controls.

What’s a detective control?

A detective control is a type of internal control that seeks to uncover problems in a company’s processes once they have occurred. Examples of detective controls include physical inventory checks, reviews of account reports and reconciliations, as well as assessments of current controls.

What are 3 examples of preventive controls?

Examples of preventative controls include policies, standards, processes, procedures, encryption, firewalls, and physical barriers.

What are detective and preventive controls?

Detective controls are designed to detect errors or irregularities that may have occurred. Corrective controls are designed to correct errors or irregularities that have been detected. Preventive controls, on the other hand, are designed to keep errors and irregularities from occurring in the first place.

What are detective controls in cyber security?

Detective controls are a key component of a cybersecurity program in providing visibility into malicious activity, breaches and attacks on an organization’s IT environment. These controls include logging of events and the associated monitoring and alerting that facilitate effective IT management.

Is a bank reconciliation a detective control?

Bank reconciliations verify the integrity of data between the bank records and a company’s internal financial records. The very nature of a reconciliation control is detective, catching things like fraud, errors, and missing items—all after the fact, but before financials are reported.

Is approval a preventive or detective control?

Approvals, Authorizations, and Verifications (Preventive).

A supervisor’s approval (manual or electronic) implies that he or she has verified and validated that the activity or transaction conforms to established policies and procedures.

What are examples of controls?

Control is defined as to command, restrain, or manage. An example of control is telling your dog to sit. An example of control is keeping your dog on a leash. An example of control is managing all the coordination of a party.

What are the 3 types of controls?

Types of Controls
  • Preventive controls are proactive in that they attempt to deter or prevent undesirable events from occurring.
  • Corrective controls are put in place when errors or irregularities have been detected.
  • Detective controls provide evidence that an error or irregularity has occurred.

In which situation would a detective control be warranted?

The detective control is warranted when the organization needs to check on the prohibited activity. It is done when the organization or its network is facing a threat or intrusion.

What are the three types of internal control?

There are three main categories of internal controls: preventative, detective and corrective. Internal controls are characteristically summed up as a series of policies and procedures or technical protections that are put in place to prevent problems and protect the assets of a business organization.

What are the 9 common internal controls?

Here are controls: Strong tone at the top; Leadership communicates importance of quality; Accounts reconciled monthly; Leaders review financial results; Log-in credentials; Limits on check signing; Physical access to cash, Inventory; Invoices marked paid to avoid double payment; and, Payroll reviewed by leaders.

What are the 5 internal controls?

There are five interrelated components of an internal control framework: control environment, risk assessment, control activities, information and communication, and monitoring.

What are the 7 internal control procedures?

What are the 7 internal controls procedures?
  • Separation of duties.
  • Access controls.
  • Physical audits.
  • Standardised financial documents.
  • Periodic trial balances.
  • Periodic reconciliations.
  • Approval authority.

What are examples of internal controls?

Examples of Internal Controls
  • Segregation of Duties. When work duties are divided or segregated among different people to reduce the risk of error or inappropriate actions.
  • Physical Controls. …
  • Reconciliations. …
  • Policies and Procedures. …
  • Transaction and Activity Reviews. …
  • Information Processing Controls.

What are the 4 types of internal controls?

Preventive Controls

Separation of duties. Pre-approval of actions and transactions (such as a Travel Authorization) Access controls (such as passwords and Gatorlink authentication) Physical control over assets (i.e. locks on doors or a safe for cash/checks)

What are the four types of control?

The four types of control systems are belief systems, boundary systems, diagnostic systems, and interactive system.