The preventive 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)Are controls put by the management to prevent problems from occurring

Question

Quizplus · Accepted Answer

Preventive controls are designed to prevent errors or irregularities from occurring in the first place, hence they are implemented by management to avoid potential problems.

The Preventive Controls Within a Company's Internal Control System