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

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Question added by Mir Mujtaba Ali , Internal Audit Manager , Confidential
Date Posted: 2015/01/01
Divyesh Patel
by Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town

Supervision

Muhammad Latif Khirani
by Muhammad Latif Khirani , Financial Consultant , Bifringence (International Consulting Firm)

Transaction authorization

Salah Othman Yousef Alshambaati
by Salah Othman Yousef Alshambaati , مدير ادارة الحسابات , شركة انفال الجديدة للتجارة والمقاولات

c) Supervision )

Deleted user
by Deleted user

OPTION   C

Khurram Shaukat Memon
by Khurram Shaukat Memon , Academic Research Writer , Freelance Academic Research Writer

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

Deleted user
by Deleted user

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