Which of the following is an example of a preventive control?
A) management level reviews of actual performance versus budgets
B) credit manager following up on an exception report showing sales made to a customer who has exceeded their credit limit
C) sales invoices are automatically priced using the information in the price master file
D) a bank reconciliation

Question

Quizplus · Accepted Answer

Preventive controls are designed to deter errors or irregularities from occurring. Option C, where sales invoices are automatically priced using information in the price master file, is an example of a preventive control because it prevents pricing errors by automating the process.

Which of the Following Is an Example of a Preventive