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      Question

      In a manufacturing company, which of the following best

      represents a preventive control?
      A Bank reconciliation Correct Answer Incorrect Answer
      B Physical verification of stock Correct Answer Incorrect Answer
      C Segregation of duties Correct Answer Incorrect Answer
      D Surprise cash count Correct Answer Incorrect Answer

      Solution

      Preventive controls are designed to avoid errors/frauds. Segregating responsibilities prevents misappropriation.

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