Question

which of the following is an example of detective controls? multiple choice the company should establish formal guidelines to handle cash receipts and make purchases. management periodically determines whether the amount of physical assets agree with the accounting records. employees should be made aware of the companys internal control policies. important documents should be kept in a safe place, and electronic files should be backed up regularly.

Explanation:

Detective controls are designed to identify errors or irregularities after they have occurred. Establishing guidelines is a preventive control. Making employees aware of policies is a preventive control. Keeping documents safe and backing - up files is a preventive control. Periodically checking physical assets against accounting records can detect discrepancies, which is a detective control.

Answer:

Management periodically determines whether the amount of physical assets agree with the accounting records.