Which of the Following Statements Is True Regarding Preventive Control

question 12

Multiple Choice

Which of the following statements is true regarding preventive control procedures and detective control procedures?

• A)They should be interrelated
• B)If preventive controls exist, detective controls are unnecessary
• C)If detective controls exist, preventive controls are unnecessary
• D)Preventive controls should be cost effective, but detective controls do not need to be cost effective

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Definitions:

Assets

Resources owned or controlled by a company, which are expected to provide future economic benefits.

Liabilities

financial obligations or debts that a business needs to settle in the future, such as loans, accounts payable, and mortgages.

Withdrawals

Amounts taken from a business by the owner for personal use.

Assets

Resources owned by a business or individual with economic value or expected to provide future benefits.