Certified Management Accountant Practice Exam

The term that refers to controls that both mitigate risks and work in conjunction with primary controls is complementary controls. These controls are designed to provide additional security and risk mitigation alongside the primary controls already in place. Their purpose is to enhance the overall effectiveness of the control environment by addressing any gaps or weaknesses that may exist in the primary controls.

Complementary controls can take many forms, such as additional procedures, policies, or technologies that support the primary controls. For instance, if a primary control is an automated system for transaction approval, a complementary control might involve manual reviews or audits that ensure the system's effectiveness and accuracy. This relationship helps organizations strengthen their risk management efforts and maintain a robust internal control framework.

Understanding the role of complementary controls is crucial for a comprehensive approach to managing risks effectively within an organization. They are not a standalone solution, but rather work alongside primary controls to create a more resilient control environment overall.