All 18 Internal Controls Evaluation questions
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Auditing & Assurance › Internal Controls Evaluation

What is the difference between preventive and detective controls?

Intermediate

Answer

Preventive controls stop errors or fraud before they occur (e.g., approval limits, access restrictions, segregation of duties). Detective controls identify errors or fraud after they occur (e.g., reconciliations, exception reports, physical counts). A good system combines both; detective controls catch what preventive controls miss and support timely correction.
Real-world example Approval limits prevent unauthorized spend (preventive), while bank reconciliations detect any that slips through (detective).

Common follow-ups: Give an example of each. | Why combine both types?

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All 18 Internal Controls Evaluation questions