Which of the following is a detective control for managing the risk of fraud?

The correct answer is D. Receipts for employee expenses. Detective controls are designed to identify and detect errors or fraud after they have occurred. Receipts for employee expenses serve as a detective control by providing evidence of transactions, enabling verification and review of expenses to identify any fraudulent or…

Performing the Engagement

Question

Options

AAwareness of prior incidents of fraud.
BContractor non-disclosure agreements.
CVerification of currency exchange rates.
DReceipts for employee expenses.

How the community answered

(33 responses)

A
3% (1)
B
3% (1)
C
6% (2)
D
88% (29)

Explanation

Detective controls are designed to identify and detect errors or fraud after they have occurred. Receipts for employee expenses serve as a detective control by providing evidence of transactions, enabling verification and review of expenses to identify any fraudulent or unauthorized activities. Awareness of prior incidents of fraud (Option A) is more of a preventive control, contractor non- disclosure agreements (Option B) are preventive controls to mitigate risks of information leakage, and verification of currency exchange rates (Option C) is more of a transaction control.

Topics

#detective controls#fraud management#control classification#expense receipts

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