Final answer:
Proper examples of detective controls from the question are the preparation of monthly bank reconciliations, monthly trial balances, and quarterly financial statements, which include balance sheets and income statements. These processes help identify errors and irregularities in financial records.
Step-by-step explanation:
Proper examples of detective controls are B, D, and A in that order:
- Prepare quarterly balance sheets and income statements.
- Prepare monthly bank reconciliations.
- Prepare monthly trial balances.
On the other hand, requiring authorization before recording a transaction is a preventive control, not a detective one. Detective controls are accounting processes designed to detect and correct inaccuracies and irregularities after they have occurred. Preparing monthly bank reconciliations allows a company to compare its accounting records to the bank's records, detecting discrepancies. Monthly trial balances can uncover any ledger errors by ensuring debits equal credits. Lastly, the creation of quarterly balance sheets and income statements helps identify anyunexpected changes in financial conditions or operations.