Auditing
Preventive controls are measures implemented by an organization to deter or reduce the likelihood of undesirable events from occurring, particularly in the realm of financial reporting and compliance. These controls aim to proactively manage risks by ensuring that errors or fraud do not happen in the first place, which is crucial for maintaining integrity and trust in the organization’s processes and outputs. By addressing potential issues before they arise, preventive controls form a vital part of an effective internal control system.
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