DETECTIVE CONTROLS
- Policies and procedures that identify if certain events have occurred
- Passive in nature
- Typically used as a second line of defense
Examples
- Controller reviews the draft financial statements for errors
- Inventory counts are performed, to compare physical inventory to financial records
Detective – again as the name suggests, these controls detect or identify if an event has occurred
-More often used as a second line of defense, to ensure no break downs in the first line of defense
Qs: Can anyone think of an example?
Examples:
Controller reviews draft FS to detect errors or mistakes
Inventory count – comparing physical inventory to financial records to identify any differences