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

Question

Quizplus · Accepted Answer

The automatic pricing of sales invoices prevents errors or intentional manipulation of prices by employees since they cannot input the price manually.

Answer: C
 The credit manager's follow-up on sales made to a customer who has exceeded their credit limit is a preventive control to avoid credit risk and potential loss from bad debts.

Therefore, the best choices for prevent controls are A and C.

Which of the Following Is an Example of a Prevent