Certified Management Accountant Practice Exam 2025 - Free CMA Practice Questions and Study Guide

The focus of corrective controls is to address and rectify the negative impacts that arise from unwanted events or incidents that have already occurred. These controls are essential in the management framework as they provide mechanisms to restore systems and processes to their desired state after an undesirable event has taken place.

Corrective controls might involve actions such as implementing changes to processes, training employees, repairing or replacing defective assets, or modifying operational workflows to prevent the recurrence of issues. Their primary aim is to limit the damage from those events and ensure that corrective actions are taken to improve future outcomes.

Preventive controls, on the other hand, are designed to stop unwanted events from occurring in the first place. Detective controls are intended to identify undesired events after they have happened, while directive controls provide guidance on expected behavior and practices. Therefore, while each type of control plays a significant role in overall risk management and organizational effectiveness, corrective controls specifically focus on the aftermath of an event, making them vital for minimizing negative consequences and fostering improvement.