Question

An employee at a jewelry store checks an inventory (a list of all the items the store is supposed to have for sale). Four items on the list are missing. What type of control is this?

A) Detective
B) External
C) Preventative
D) Chronological

Answer 1

An employee checking an inventory list for missing items is performing a detective control, which identifies problems after they occur. Therefore, the correct option is A) Detective.

Step-by-step explanation:

The employee at a jewelry store who checks the inventory to verify that all items listed for sale are actually present is performing a detective control. This type of control is aimed at identifying deficiencies in the implementation of controls, thereby uncovering issues such as missing inventory after they have occurred.

It's distinguished from preventive controls, which are designed to prevent errors or irregularities from occurring in the first place, and from external controls which are implemented by external parties. It's also not a chronological control, which would relate to organizing records in a time-based sequence.