Which of the following is the clearest example of a preventive control?
A) Once each year, a company looks over its payroll records to see if any employee has been paid more money than their authorized salary.
B) Once each year, a company counts its inventory and investigates why some items are missing.
C) Before it accepts any new orders from a customer, it checks to make sure the customer has a good credit rating.
D) The company hires attorneys to sue customers who have not paid their bills.
Correct Answer:
Verified
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