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239 
Classification 
Detail 
Administration
These are concerned with achieving the objectives of the organisation and with 
implementing policies. These controls relate to channels of communication and 
reporting responsibilities. 
Accounting
These controls aim to provide accurate accounting records and to achieve 
accountability. They apply to recording transactions and establishing responsibilities 
for records, transactions and assets. 
Prevent
These are controls designed to prevent errors from happening in the first place. For 
example, checking invoices from suppliers against goods received notes before paying 
the invoices. 
Detect
These are designed to detect errors once they have happened. Examples include bank 
reconciliations and physical checks of inventory against inventory records. 
Correct
These are designed to minimise or negate the effect of errors. An example would be a 
back-up of computer input at the end of the day. 
QUESTION 
Prevent controls
 
How can prevent controls be used to measure performance and efficiency? 
ANSWER 
In the above examples the system outputs could include information about, say, the time lag between 
delivery of goods and invoicing: 
(a) 
As a measure of the 
efficiency of the invoicing section
(b) As 
an 
indicator of the speed and effectiveness
of 
communications 
between the despatch 
department and the invoicing department 
(c) As 
relevant background information
in assessing the effectiveness of cash management 
You should be able to think of plenty of other examples. Credit notes reflect customer dissatisfaction, for 
example: how quickly are they issued?