Which type of internal control is designed to prevent issues before they occur?

The type of internal control designed to prevent issues before they occur is preventive control. Preventive controls are proactive measures implemented within an organization to reduce the likelihood of errors, fraud, or non-compliance. By identifying potential risks in advance and establishing safeguards, these controls aim to deter issues from emerging in the first place. Common examples include segregation of duties, access controls, employee training, and thorough vetting of processes before they are executed.

Detective controls, in contrast, are designed to identify and uncover problems after they have already occurred, which is not aligned with the goal of preventing issues. Directive controls aim to guide employee behavior toward desired outcomes, while compensatory controls serve as alternative measures that can be used in place of primary controls. Therefore, preventive controls specifically fulfill the function of thwarting potential problems before they manifest.