This Type of Control Is Designed to Avoid Errors, Fraud

question 34

Multiple Choice

This type of control is designed to avoid errors, fraud, or events not authorized by management.

• A)Prevention
• B)Judicial
• C)Detection
• D)Correction

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Definitions:

Drawer

The person or entity that writes or issues a check, making an order to a bank to pay a specified amount of money to the party named or to the bearer.

Midnight Deadline

A cutoff point set at 11:59 PM, often used in legal, financial, and operational contexts to mark the end of a given day or deadline.

Drawer-payor Bank

Refers to the bank upon which a check is drawn and is responsible for paying the check when it is presented.

Banking Day

A business day during which financial institutions are open for conducting banking transactions.