An example of a preventive control is

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Separation of the Purchasing Department and Accounting Department personnel is an example of a preventive control because it is intended to prevent fraudulent activities from occurring in the first place. This control ensures that there is a clear segregation of duties such that no single employee has complete control over any one aspect of the purchasing and accounting process. This helps to reduce the opportunity for fraud and increases the likelihood of detection if it does occur.

Choices A, C, and D are not preventive controls because they do not prevent fraudulent activities from occurring. Using a bank account, bonding employees who handle cash, and accepting payment in currency only are examples of detective and corrective controls, which are intended to detect and correct fraudulent activities after they have occurred.

An Example of a Preventive Control Is