4.The procedure requiring preparation of a prelisting of incoming cash receipts, with copies of the pre-list going to the cashier and to accounting, is an example of which type of control?

Apreventive

Bcorrective

Cdetective

Ddirective

AyesA prelisting of cash receipts in the form of checks is a preventive control. It is intended to deter undesirable events from occurring. Because irregularities involving cash are most likely before receipts are recorded, either remittance advices or a prelisting of checks should be prepared in the mailroom so as to establish recordedaccountability for cash as soon as possible.

A cash register tape is a form of prelisting for cash received over the counter. One copy of a prelisting will go to accounting for posting to the cash receipts journal, and another is sent to the cashier for reconciliation with checks and currency received.

BnoA corrective control rectifies an error or irregularity.

CnoA detective control uncovers an error or irregularity that has already occurred..

DnoA directive control causes or encourages a desirable event.