Identify the preventive control below.
A)Reconciling the bank statement to the cash control account.
B)Approving customer credit prior to approving a sales order.
C)Maintaining frequent backup records to prevent loss of data.
D)Counting inventory on hand and comparing counts to the perpetual inventory records.

Question

Quizplus · Accepted Answer

Approving customer credit prior to approving a sales order is a preventive control because it aims to prevent potential issues (such as non-payment) before they occur by ensuring that customers have the ability to pay.

Identify the Preventive Control Below