Comprehensive and Detailed Step-by-Step Explanation:

Reference to Internal Controls:

Preventive controls are designed to prevent errors, fraud, or irregularities before they occur by

ensuring that processes and activities are performed correctly from the start.

Standard 2130 - Control: Internal auditors assess the design and effectiveness of controls to prevent

risks from materializing.

Reasoning:

Option A is correct because segregation of duties (ordering, receiving, and paying) is a preventive

control, as it prevents a single person from having the authority to initiate, authorize, and complete a

transaction, reducing the risk of fraud or errors.

Option B (Directive) would focus on guiding behavior, such as setting policies or expectations.

Option C (Detective) refers to controls that identify and detect errors after they occur, such as audits

or reviews.

Impact of Segregation of Duties:

By ensuring duties are segregated, organizations minimize the risk of fraudulent activities and errors,

thus acting as a preventive measure.