Which control is commonly used to detect errors and irregularities after transactions occur?

• A. Door locks
• B. Strategic planning
• C. Vendor interviews
• D. Reconciliations

Answer: (D)

Detecting errors and irregularities after transactions occur is accomplished through reconciliations. Reconciliations are detective controls that compare two sets of records—such as the accounting ledgers and supporting documentation or external statements—to verify they agree. This helps uncover mismatches like misposted amounts, omissions, duplicates, or fraud indicators. When a difference is found, it prompts investigation and adjustments to bring the records back into alignment, ensuring the financial data reflects reality. For example, a bank reconciliation compares the cash account to the bank statement to spot timing differences or errors, while supplier or customer reconciliations align balances with external records. Other options serve different purposes: door locks prevent unauthorized access (preventive security), strategic planning guides organizational direction, and vendor interviews are part of due diligence and procurement rather than post-transaction detection.