Certified Management Accountant 2026 – 400 Free Practice Questions to Pass the Exam

Detective controls are primarily implemented to identify and discover control problems or errors that may have occurred despite the presence of preventive controls. Their main function is to provide assurance that any issues that slip through the preventive measures are detected in a timely manner. This allows organizations to take corrective action, thus minimizing the impact of those issues on operations and financial results.

In a well-structured control environment, preventive controls are designed to avoid issues proactively, while detective controls serve as a critical second line of defense by monitoring and revealing any discrepancies, fraud, or inefficiencies after they have happened. This dual approach helps organizations maintain effectiveness in their risk management strategies.

The other options, while having their own importance within a broader management control framework, do not accurately define the essence of detective controls. For example, correcting past errors relates more to corrective actions rather than the discovery and identification process central to detective controls. Encouraging good practices aligns more closely with preventive controls intended to foster compliance and ethical behavior. Lastly, the notion of eliminating all risks is unrealistic, as risk management typically focuses on reducing risks to an acceptable level rather than complete eradication.