What are the three types of internal controls?

The correct choice identifies the three fundamental types of internal controls as Preventive, Detective, and Directive.

Preventive controls are designed to keep errors or issues from occurring in the first place. They aim to stop problems before they arise, which is crucial in healthcare compliance to mitigate risks and ensure all operations adhere to necessary regulations from the start.

Detective controls, on the other hand, are intended to identify and expose errors or irregularities that have already occurred. These controls are vital for monitoring processes and ensuring compliance, as they provide the means to discover issues that preventive measures may not catch.

Directive controls guide or direct employees to act in a certain way and are often found in the form of policies and procedures. These controls ensure that everyone in the organization understands the appropriate actions required for compliance and risk management.

By combining these three types—preventive to avoid issues, detective to uncover them, and directive to provide guidance—organizations can create a comprehensive internal control system that effectively manages compliance risks in healthcare settings. This ensures a robust framework that enhances integrity and accountability within the operations.