Which of the following is an example of a prevent 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 prevent errors or irregularities from occurring. Automatically pricing sales invoices using information in the price master file is a preventive control because it ensures that pricing errors are minimized by using pre-approved pricing data.

Which of the Following Is an Example of a Prevent