What does a preventive internal control involve?

A preventive internal control involves taking proactive steps to mitigate risks before they manifest into issues. Requesting permission before carrying out an action is a prime example of this preventive approach. By requiring authorization, organizations can ensure that actions are necessary, compliant with policies, and reduce the likelihood of unauthorized or potentially harmful activities. This step helps in preventing errors, fraud, or non-compliance by applying a layer of oversight before actions are taken.

In contrast, identifying issues after they occur is reactive and does not prevent problems. Monitoring actions through audit trails focuses on detecting and tracking actions post-factum, not preventing them. Providing feedback after actions have been taken also occurs afterwards and does not contribute to preventing potential issues before they arise. Hence, requesting permission is clearly a measure designed to prevent problems in the first place.