Preventive controls

Preventive controls are used to keep a loss or an error from occurring. Examples of preventive controls are segregated duties and the physical protection of assets. These controls are typically integrated into a process, so that they are applied on a continual basis. They are especially common when the severity of a loss is considered to be quite high, so that their imposition will lower the probability of any loss ever occurring.

Related Courses

Accounting Controls Guidebook 
Accounting Procedures Guidebook