What type of control is designed to ensure that employees follow applicable laws and regulations?

Prepare for the AAT Internal Accounting Systems and Controls Level 4 Exam. Study with multiple choice questions and detailed explanations to boost your success. Get exam-ready!

The choice of compliance control is accurate because it specifically pertains to mechanisms put in place to ensure that an organization adheres to laws, regulations, and policies governing its operations. This type of control is essential for mitigating risks associated with non-compliance, which can lead to legal penalties, damage to reputation, and financial loss.

Compliance controls can take various forms, such as training programs, audits, and monitoring systems, all aimed at reinforcing the necessity of adhering to regulatory requirements. By emphasizing adherence to laws and regulations, compliance controls play a critical role in fostering a culture of integrity and accountability within an organization.

Other types of controls, such as preventive, detective, and corrective controls, serve different purposes. Preventive controls are designed to prevent undesirable events from occurring, detective controls identify and investigate incidents after they happen, and corrective controls are focused on remedying issues that arise. While these types of controls may indirectly contribute to compliance, they do not specifically target the adherence to laws and regulations as their primary function. Thus, compliance control is the most appropriate answer in this context.

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