Which of the following transaction is often called a compensating control? (a) Transaction authorization (b) Accounting records (c) Supervision

Transaction authorization

OPTION   C

Both option (a) and (c) qualify as compensating controls.

Segregation of duties is a compensating control, however in a small entity where there is few staff, there is only the director who is the supervisor / authorising body on transactions.

(a) authorising transactions is the more correct answer