Detective controls
In one sentenceControls that detect errors or fraud after they happen so they can be corrected, such as bank reconciliation, physical counts and report reviews.
Simply put
Detective controls do not prevent the error, but they find it quickly: comparing the book balance with the bank statement, or counting inventory and comparing it with the balance in the system.
The closer they are to the time of the transaction, the smaller the damage, so a monthly reconciliation is better than an annual one.
Example
A pharmacy carries out a surprise count of ten expensive items every week and compares the count with the balance in the system, so any shortage shows up within days instead of at year end.
Don't confuse it with
Preventive controlsDetective controls work after the transaction, and preventive controls before it.
in FullScreen ERP
The Stocktaking app on mobile, with surplus and shortage reports by quantity and by value of goods. Stocktaking app