An organization has implemented a software system that requires a supervisor to approve transactions that would cause treasury dealers to exceed their authorized limit. This is an example of which of the following types of controls?
A) Preventive controls.
B) Detective controls.
C) Soft controls.
D) Directive controls.

Question

Quizplus · Accepted Answer

Preventive controls are designed to prevent errors or irregularities from occurring. In this case, requiring supervisor approval before exceeding limits is a preventive measure to stop unauthorized transactions.

An Organization Has Implemented a Software System That Requires a Supervisor