Skip to content

ACCA Applied Knowledge · Business and Technology · Accounting and finance functions within business organisations

Which of the following is an example of a detective control within a finance function?

A monthly bank reconciliation by an independent clerk is a detective control because it identifies errors or unauthorised transactions after they have happened. Dual signatures, password access and pre-numbered orders are preventive controls that aim to stop problems occurring.

  1. AMonthly bank reconciliation prepared by an independent clerkCorrect
  2. BRequiring two signatures on cheques above a set limit
  3. CPassword-protected access to the payroll system
  4. DPre-numbered purchase orders issued in sequence

Explanation

A bank reconciliation identifies errors or irregularities after transactions have occurred, so it is detective. Dual signatures, password access and pre-numbered documents are designed to stop problems happening in the first place, making them preventive controls.

Did you get it right without looking?

One question tells you little. A timed set on Accounting and finance functions within business organisations shows your real accuracy, how long you take and where you lose marks.

Practise Accounting and finance functions within business organisationsFree diagnostic mock

More Accounting and finance functions within business organisations questions