What distinguishes preventive controls from detective controls?

The distinction between preventive controls and detective controls is clearly defined by their fundamental purposes within an accounting system. Preventive controls are designed specifically to avert errors or irregularities before they occur, thereby maintaining the integrity of the accounting process. These may include measures such as segregation of duties, clear policies and guidelines, and training for employees to ensure compliance with procedures.

On the other hand, detective controls serve a different purpose: they aim to identify and uncover errors or irregularities once they have occurred. These could include audits, reconciliations, and exception reports that alert management to issues that require attention.

Option C captures this essential distinction accurately by stating that preventive controls aim to prevent errors while detective controls focus on identifying them after they happen. This understanding is crucial for developing robust internal accounting systems that ensure not only operational efficiency but also accountability and compliance with relevant regulations.