Internal Controls and Auditing in Business

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Questions and Answers

What is the purpose of reactive controls?

To ensure all users have the latest signature files installed
To prevent bad events from occurring
To review logs for inappropriate activities
To detect bad events after they have occurred (correct)

In the context of the text, what do preventive controls aim to do?

Prevent bad events from occurring (correct)
Review logs for suspicious activities
Detect inappropriate activities after they have occurred
Correct situations when bad events have occurred

Which term is synonymous with reactive controls?

Detective controls
Corrective controls (correct)
Internal controls
Preventive controls

What is a typical example of a reactive control mentioned in the text?

Central antivirus system checking for latest signature files (A) Signup and view all the answers

How do reactive controls differ from preventive controls?

Preventive controls aim to stop bad events from happening, while reactive controls react after bad events have occurred (C) Signup and view all the answers

What is an example of a preventive control in the context of the text?

Ensuring each user's PC has latest signature files (B) Signup and view all the answers

How do detective controls differ from reactive controls?

Reactive controls come into play after bad events have occurred, while detective controls aim to identify bad events during occurrence (B) Signup and view all the answers