What is the meaning of preliminary control?

Preliminary control refers to the initial steps taken to prevent or minimize potential risks or problems before they occur. It involves identifying potential issues, assessing their likelihood and impact, and implementing measures to address them proactively. This helps to ensure that processes run smoothly and efficiently, and that potential problems are addressed before they escalate.

Preliminary control is an accounting procedure performed before recording accounting transactions in a company's books of accounts. Its objective is to ensure that all transactions are properly authorized, classified, and recorded.

Preliminary control involves the following steps:

1. Authorization: Ensuring that transactions have been approved by an authorized person in the company.

2. Classification: Determining the correct account or accounts to which a transaction should be posted.

3. Recording: Entering the transaction into the accounting system in a timely and accurate manner.

4. Verification: Reviewing and verifying the accuracy of the recorded transaction.

Preliminary control helps to prevent unauthorized transactions, errors, and fraud by establishing clear guidelines and procedures for recording accounting transactions. It also ensures that all transactions are complete, valid, and properly documented, contributing to the reliability and integrity of the accounting records.