The preventative controls within a company's internal control system:
A)Form the foundation for all of a company's other internal control components
B)Focus on management's philosophy and operating style
C)Ignore the risk factor associated with a company's control procedures
D)Relate to safeguarding a company's assets and checking the accuracy and reliability of the company's accounting data

Question

Quizplus · Accepted Answer

Preventative controls are designed to safeguard a company's assets and ensure the accuracy and reliability of its accounting data by preventing errors or fraud before they occur.

The Preventative Controls Within a Company's Internal Control System