Final answer:
The correct option is c. preventive; corrective.
Hiring qualified personnel is a preventive control as it aims to prevent errors or irregularities, while procedures to resubmit rejected transactions are a corrective control that deal with issues after they have occurred.
Step-by-step explanation:
The distinction between preventive and corrective controls is crucial in establishing a robust system of internal controls within an organization. Hiring qualified personnel exemplifies a preventive control, while procedures to resubmit rejected transactions represent a corrective control.
Preventive controls are implemented with the aim of forestalling errors, irregularities, or undesirable events before they occur. In the context of hiring, ensuring the recruitment of qualified personnel involves meticulous screening, verification processes, and thorough assessments during the hiring process. By setting stringent criteria and scrutinizing candidates, organizations can proactively reduce the likelihood of hiring individuals who may not possess the necessary qualifications or skills. Preventive controls are essentially proactive measures intended to create barriers and deter incidents before they materialize.
On the other hand, corrective controls come into play after an error or issue has been identified. In the case of procedures to resubmit rejected transactions, these mechanisms are activated in response to the detection of a problem, allowing for the correction and proper processing of transactions that initially faced rejection. Corrective controls aim to rectify the consequences of errors and mitigate potential damage to the organization.
In conclusion, the hiring of qualified personnel as a preventive control aligns with the proactive approach of averting issues before they arise. Conversely, procedures to resubmit rejected transactions as a corrective control address problems post-identification, illustrating the reactive nature of measures designed to correct errors or anomalies that have already occurred. Both types of controls are integral components of a comprehensive internal control framework, collectively contributing to the organization's effectiveness and risk management strategies.