A well-designed purchase order is an example of a
A)preventive control
B)detective control
C)corrective control
D)none of the above

Question

Quizplus · Accepted Answer

A well-designed purchase order acts as a preventive control by ensuring that only authorized purchases are made from approved vendors, at approved prices and quantities, and within authorized budgets. This helps prevent fraudulent or unauthorized purchases, reduces errors and mistakes, and ensures compliance with organizational policies and procedures. Detective and corrective controls, on the other hand, are reactive measures that are used to identify and correct errors or fraud after they have occurred.

A Well-Designed Purchase Order Is an Example of a