Which of the following is an example of a preventive control?
A) management level reviews of actual performance versus budgets
B) credit manager following up on an exception report showing sales made to a customer who has exceeded his or her credit limit
C) sales invoices are automatically priced using the information in the price master file
D) a bank reconciliation

Question

Quizplus · Accepted Answer

Preventive controls are designed to prevent errors or irregularities from occurring. Automatically pricing sales invoices using information from the price master file is a preventive control because it ensures that prices are applied correctly before the transaction is completed.

Which of the Following Is an Example of a Preventive