A computer program that will NOT allow a sale to be processed if a customer has exceeded its credit limit is an example of a
A) preventive control.
B) test of controls.
C) detect control.
D) substantive procedure.

Question

Quizplus · Accepted Answer

The computer program that prevents a sale from being processed if a customer has exceeded its credit limit is an example of a preventive control because it is designed to prevent errors or irregularities from occurring in the first place. Preventive controls are one of the three main types of internal controls, along with detective controls and corrective controls.

A Computer Program That Will NOT Allow a Sale to Be