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?

    <p>Central antivirus system checking for latest signature files</p> Signup and view all the answers

    How do reactive controls differ from preventive controls?

    <p>Preventive controls aim to stop bad events from happening, while reactive controls react after bad events have occurred</p> Signup and view all the answers

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

    <p>Ensuring each user's PC has latest signature files</p> Signup and view all the answers

    How do detective controls differ from reactive controls?

    <p>Reactive controls come into play after bad events have occurred, while detective controls aim to identify bad events during occurrence</p> Signup and view all the answers

    Which term best describes controls that try to identify bad events as they occur?

    <p>Detective controls</p> Signup and view all the answers

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