Internal control procedures fit into two categories:
1)preventing accidental errors and intentional misrepresentations from occurring, and 2)_____.
A) reprimanding employees responsible for errors
B) covering up errors after the occur
C) punishing those responsible for errors
D) identifying errors and irregularities after the occur
E) overlooking errors after they occur

Question

Quizplus · Accepted Answer

The second category of internal control procedures is identifying errors and irregularities after they occur, in order to take corrective action and prevent them from happening in the future. Punishing or reprimanding employees after the fact does not prevent errors from occurring, and covering up or overlooking errors goes against the purpose of internal controls.

Internal Control Procedures Fit into Two Categories