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The Governmental Accounting Standards Board (GASB) sets GAAP for state/local governments. FASB (Option A) covers private sector. FASAB (Option C) covers federal government. OMB (Option D) issues guidance but not GAAP. Exam 1 stresses standard-setting distinctions. Option B is correct.

Bank reconciliations detect unauthorized transactions or errors after they occur, making them detective controls. Encryption (Option A) and pre-approvals (Option D) are preventive. Segregation of duties (Option B) is preventive. Exam 3 stresses distinguishing preventive vs. detective controls. Option C is correct.

Role-based access restrictions ensure only authorized personnel can modify accounting software settings or data. This is a preventive IT control aligned with Exam 3 internal control frameworks. Independent reconciliations (Option A) and variance analyses (Option D) are detective, not preventive. Management reviews (Option C) evaluate performance but do not restrict access. Access controls safeguard integrity of financial systems, reducing risk of fraud or error. Option B is correct.

Enterprise Funds record business-like activities where services are provided to the public for a fee, such as water utilities, airports, or public transit. Internal Service (Option B) is for internal departments. Special Revenue (Option C) tracks restricted inflows. General Fund (Option D) handles unrestricted operations. Exam 2 stresses proprietary fund distinctions. Option A is correct.

Capital Projects Funds account for resources restricted to constructing major facilities, such as parks financed by bonds. Debt Service (Option A) repays debt. Special Revenue (Option B) tracks restricted revenues. General Fund (Option D) covers general operations. Exam 2 emphasizes capital project reporting. Option C is correct.