ACCA Applied Knowledge · Business and Technology · Internal controls
A company discovers that a software virus corrupted its sales ledger. It restores the data from the previous night's backup and re-enters the day's transactions. Which statement is most accurate?
Restoring from backup is a corrective control, because it repairs the damage after corruption has been found and returns the system to normal. Backups are the prior arrangement that make correction possible. Identifying the corruption is a detective matter, and nothing here prevents the virus occurring.
- ARestoring from backup is a corrective control, whereas the creation of nightly backups is the preparation that makes correction possibleCorrect
- BRestoring from backup is a preventive control because it stops the virus from spreading
- CRestoring from backup is a detective control because it shows that the data was corrupted
- DRestoring from backup is not a control, since controls only operate before errors occur
Explanation
Corrective controls limit the damage and restore normal operations after a problem is found. Restoring data from backup does exactly this. Detecting the corruption would be done by other controls such as validation checks or anti-virus alerts, and the restoration does not prevent the original event.
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