The most cost-effective type of internal control is
A)preventive control
B)accounting control
C)detective control
D)corrective control

Question

Quizplus · Accepted Answer

Preventive controls are the most cost-effective type of internal control as they aim to prevent errors or fraud from occurring in the first place. This avoids the costs associated with detecting and correcting errors later on. Preventive controls include measures such as segregation of duties, implementing policies and procedures, and training programs. Accounting, detective, and corrective controls are all reactive measures that are more costly to implement.

The Most Cost-Effective Type of Internal Control Is