Which component of internal control is primarily designed to discourage security violations before they occur?

• A. Control Environment
• B. Preventive Controls
• C. Detective Controls
• D. Corrective Controls

Answer: (B)

Verified step by step guidance

1. Understand the concept of internal control: Internal control refers to the processes and mechanisms implemented by an organization to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud or errors.
2. Learn about the types of controls: Internal controls are categorized into preventive, detective, and corrective controls. Preventive controls are designed to stop issues before they occur, detective controls identify issues after they happen, and corrective controls address and fix identified issues.
3. Focus on preventive controls: Preventive controls are proactive measures aimed at discouraging or stopping security violations before they occur. Examples include access controls, authorization procedures, and employee training.
4. Compare the options provided: Control Environment refers to the overall tone and culture of the organization regarding internal control, but it is not specifically designed to prevent violations. Detective Controls identify violations after they occur, and Corrective Controls address violations after detection. Preventive Controls are explicitly designed to discourage violations before they happen.
5. Conclude that Preventive Controls are the correct answer: Based on the definitions and purposes of the control types, Preventive Controls are primarily designed to discourage security violations before they occur.