Which of the following is NOT a type of internal control?

The correct answer is that compensatory is not considered a primary type of internal control in the traditional framework. Internal controls are systems and processes implemented by organizations to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Preventive controls are designed to stop undesirable events from occurring, such as fraud or errors, by addressing risks before they materialize. Examples include segregation of duties, authorization requirements, and training programs that educate employees about compliance.

Directive controls, while less common in terminology, generally refer to controls that encourage or guide behavior towards desired outcomes. They set clear policies and procedures for employees to follow, ensuring that organizational objectives are met.

Detective controls serve to identify and catch issues after they have occurred. These include audits, reconciliations, and error detection systems, which are put in place to discover discrepancies after activities take place.

Compensatory controls typically refer to alternate measures that are put in place to mitigate risk when primary controls are ineffective or are not feasible. While they play a role in risk management, they are not classified as a fundamental category of internal control like preventive, directive, or detective controls are. Thus, the term compensatory does not fit within the standard classification of internal control types, making it the correct