Question

Which of the following control types would be BEST to use in an accounting department to reduce losses from fraudulent transactions?

1) Recovery
2) Deterrent
3) Corrective
4) Detective

Answer 1

The best control type to reduce losses from fraudulent transactions in an accounting department is a Detective control.

Step-by-step explanation:

The control type that would be BEST to use in an accounting department to reduce losses from fraudulent transactions is a Detective control.

A Detective control refers to measures that are designed to detect and identify fraudulent activities after they have occurred. This includes techniques such as regular auditing, data analysis, and internal controls to identify any irregularities or suspicious transactions.

By implementing Detective controls, the accounting department can actively monitor financial records and transactions to detect any fraudulent activities, leading to early detection and prevention of further losses.