Which of the Following Is an Example of a Prevent

question 5

Multiple Choice

Which of the following is an example of a prevent 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 their 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:

Secure Neighborhood

An area or community designed or protected in a way that minimizes the risk of crime, providing a safe environment for its residents.

Insurance

A financial product sold by insurance companies to protect individuals and businesses against potential future losses in return for a premium.

Low Risk

Low risk describes investments or decisions that have a minimal chance of losing value or causing harm.

Insurance With Deductibles

A type of insurance policy where the policyholder is required to pay a specified amount of loss before the insurance coverage begins paying out.