Audit trail or audit log comes under detective controls. Detective controls are the audit controls that
are not needed to be restricted. Any control that performs a monitoring activity can likely be
defined as a Detective Control. For example, it is possible that mistakes, either intentional or
unintentional, can be made. Therefore, an additional Protective control is that these companies
must have their financial results audited by an independent Certified Public Accountant. The role
of this accountant is to act as an auditor. In fact, any auditor acts as a Detective control. If the
organization in question has not properly followed the rules, a diligent auditor should be able to
detect the deficiency which indicates that some control somewhere has failed.
Answer: B is incorrect. Reactive or corrective controls typically work in response to a detective
control, responding in such a way as to alert or otherwise correct an unacceptable condition. Using
the example of account rules, either the internal Audit Committee or the SEC itself, based on the
report generated by the external auditor, will take some corrective action. In this way, they are
acting as a Corrective or Reactive control.
Answer: A, D are incorrect. Protective or preventative controls serve to proactively define and
possibly enforce acceptable behaviors. As an example, a set of common accounting rules are
defined and must be followed by any publicly traded company. Each quarter, any particular
company must publicly state its current financial standing and accounting as reflected by an
application of these rules. These accounting rules and the SEC requirements serve as protective
or preventative controls.

Audit trail or audit log is a chronological sequence of audit records, each of which contains evidence directly pertaining to and resulting from the execution of a business process or system function.

0 Discussions

Trending Exams