Which of the Following Is an Example of a Preventive

question 34

Multiple Choice

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

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Definitions:

Price

The amount of money required to purchase a product or service.

Purpose

This refers to the fundamental reason for the existence of an organization or an individual's motive for performing a specific task.

Process

A series of actions or steps taken to achieve a particular end or result.

Communicating Problems

The process of identifying, articulating, and discussing issues or obstacles within a team or organization.