BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Answer and Explanation: a-Periodic bank reconciliation is a detective control. By preparing bank reconciliation yearly or quarterly company can detect the difference between the bank balance maintained by the company and the bank.

Detailed explanation-2: -Account reviews and reconciliations, observations of payroll distribution, periodic physical inventory counts, passwords, transaction edits and internal auditors are all examples of detective controls.

Detailed explanation-3: -Reconciliations (Detective) Monthly reconciliations of the detailed transactions posted to accounts are one of the most important controls that can be performed. These reviews provide a system of checks and balances to detect fraud, theft, inappropriate use of funds, or human error.

Detailed explanation-4: -Examples of detective controls include physical inventory checks, reviews of account reports and reconciliations, as well as assessments of current controls. Preventive controls stand in contrast to detective controls, as they are controls enacted to prevent any errors from occurring.

Detailed explanation-5: -Bank reconciliations are an essential internal control tool and are necessary in preventing and detecting fraud. They also help identify accounting and bank errors by providing explanations of the differences between the accounting record’s cash balances and the bank balance position per the bank statement.