ACCA Applied Knowledge · Business and Technology · Internal controls
Which of the following is an example of a corrective control?
Recovering an overpayment and amending the procedure that allowed it is a corrective control, because it deals with a problem after it has happened. Dual signatures are preventive and reviewing failed log-ins is detective.
- ARequiring two signatures on cheques above a set limit
- BInvestigating and recovering an overpayment made to a supplier, then amending the procedure that allowed itCorrect
- CReviewing a daily report of failed system log-in attempts
Explanation
Recovering the overpayment and amending the procedure remedies a problem that has already occurred and reduces the chance of repetition, which is corrective. Dual signatures are preventive, and reviewing failed log-in reports is detective.
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