Question

Identify the detective control below.

A. Approving customer credit prior to approving a sales order.
B. Reconciling the bank statement to the cash control account.
C. Ensuring that the employee who records cash received from customers does not also have access to the cash itself.
D. Maintaining frequent backup records to prevent loss of data.

Answer 1

Reconciling the bank statement to the cash control account.

Step-by-step explanation:

The reason is that the detective approach is the one which helps in identification of the errors in recording the facts and figure in a control system is the detective control. In this case, bank reconciliation helps in accessing the errors and entries that are not recorded in the books of accounts hence it is a detective control.