Which of the Following Is an Example of a Detective

question 5

Multiple Choice

Which of the following is an example of a detective control?

• A) account coding on purchase orders being checked by the computer to a table of valid account numbers
• B) quarterly reviews of credit balances in accounts receivable to determine their causes
• C) amounts are not able to be paid to employees without first matching a valid tax file number to the employee master file
• D) none of the above

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Definitions:

Non-current Assets

These are assets held for long-term use in a business, not expected to be converted into cash within one year, such as property, plant, and equipment.

Separate Disclosures

Financial statement notes or sections that provide additional detail on specific items not fully explained within the main financial statements.

Depreciation Expense Adjustment

Accounting practice of spreading out the cost of a tangible asset over its useful life.

Intragroup Sale

Transactions involving the sale of goods or services between subsidiaries within the same parent company, often scrutinized for transfer pricing and tax implications.