Answer (A) is correct . A prelisting of cash receipts in the form of checks is a preventive control. It is intended to deter undesirable events from occurring. Because fraud involving cash is most likely to occur before receipts are recorded, either remittance advices or a prelisting of checks should be prepared in the mail room so as to establish recorded accountability for cash as soon as possible. A cash register tape is a form of prelisting for cash received over the counter. One copy of a prelisting will go to accounting for posting to the cash receipts journal, and another is sent to the cashier for reconciliation with checks and currency received.
Answer (B) is incorrect because A corrective control rectifies an error or fraud.
Answer (C) is incorrect because A detective control uncovers an error or fraud that has already occurred.
Answer (D) is incorrect because A directive control causes or encourages a desirable event.
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