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A control procedure designed so that the employee that records cash received from customers does not also have access to the cash itself is an example of a/an

a. Preventive control.
b. Detective control.
c. Corrective control.
d. Authorization control.

User Nontomatic
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1 Answer

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Final answer:

The control procedure in question is an example of a preventive control, which is intended to prevent errors or fraud in financial and business procedures (a).

Step-by-step explanation:

A control procedure designed so that the employee that records cash received from customers does not also have access to the cash itself is an example of a preventive control. This type of control is put in place to prevent errors or fraud from occurring in the first place, and is a fundamental part of internal control systems within a business. Preventive controls help to maintain the integrity of financial and accounting information, and ensure the segregation of duties.

A control procedure designed so that the employee that records cash received from customers does not also have access to the cash itself is an example of an authorization control.

User Tarun Sharma
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