Question

ractive Applications Internal controls vary significantly between organizations--depending on attributes like organization size, natur operations, and objectives. In all systems, however, a variety of controls needs to be designed to accomplish th organization's objectives. Controls are classified as preventive, detective, or corrective. Use your cursor to match each example to the type of control it describes. Segregation of duties Preventive Control Maintaining backups of data Detective Control A requirement to prepare bank reconciliations A requirement to prepare bank reconciliations Corrective Control Prev 1 2 3 6 of 24 !!! Next > ere to search

Answer 1

1. Segregation of duties: Preventive control. Under preventive control, controls are designed to prevent the threat or loss. Segregation of duties is a preventive control as an organization divides or segregates the duties of the personnel to prevent the losses of performing big tasks or activities.

Maintaining back ups of data: Corrective control. Corrective controls are made to correct the errors once they are discovered. Maintaining back ups is act of taking corrective action.

A requirement to prepare bank reconciliations: Detective control. Detective controls aims at finding the problems with in the company's processes. A bank reconciliation is prepared to know the discrepancies between the bank and cash books.

2. The requirement to approve journal entries is an example of a preventive control.