Which of the following best explains the focus of preventative controls in an internal control framework?

Which of the following best explains the focus of preventative controls in an internal control framework?

• A. To detect and respond to issues
• B. To mitigate risks before they occur
• C. To create accountability among team members
• D. To enhance operational efficiencies through technology

Answer: (B)

Preventative controls are designed to avoid the occurrence of unwanted events or risks within an organization. The primary focus is on measures that proactively address potential issues before they arise, thus helping to maintain the integrity of processes and systems. By anticipating risks and implementing controls such as segregation of duties, authorization procedures, and access controls, organizations can reduce the likelihood of issues affecting their operations. This approach creates a more secure environment where potential issues are thwarted upfront, establishing a strong foundation of risk management within the internal control framework. It emphasizes a proactive stance, unlike other types of controls that may only deal with issues after they have already occurred. By preventing errors or fraud from happening in the first place, organizations can save on costs associated with rectifying these issues later. While accountability and operational efficiencies through technology are important aspects of an internal control framework, they do not specifically target the primary purpose of preventative controls as effectively as mitigating risks before they occur.

Preventative controls are designed to avoid the occurrence of unwanted events or risks within an organization. The primary focus is on measures that proactively address potential issues before they arise, thus helping to maintain the integrity of processes and systems. By anticipating risks and implementing controls such as segregation of duties, authorization procedures, and access controls, organizations can reduce the likelihood of issues affecting their operations.

This approach creates a more secure environment where potential issues are thwarted upfront, establishing a strong foundation of risk management within the internal control framework. It emphasizes a proactive stance, unlike other types of controls that may only deal with issues after they have already occurred. By preventing errors or fraud from happening in the first place, organizations can save on costs associated with rectifying these issues later.

While accountability and operational efficiencies through technology are important aspects of an internal control framework, they do not specifically target the primary purpose of preventative controls as effectively as mitigating risks before they occur.