Interpublic Interpublic, the World's Third-Biggest Marketing Services Group, Informed the SEC

question 2

Multiple Choice

Interpublic Interpublic, the world's third-biggest marketing services group, informed the SEC that it "had found accounting errors resulting from incompetence as well as falsified books and records, violations of the laws and company policies, and inappropriate customer charges" that required it to restate its earnings for every year in the decade. Interpublic is guilty of overstating both its expenses and its revenues in its earning reports. Interpublic blames its faulty revenue reporting on "inadequate procedures for review of customer contracts." This fraudulent activity will more than likely result in a default on the company's debt and the loss of its stock market listing. Refer to Interpublic. It appears that the control method Interpublic believed it should have used was one that focused on whether rules and policies were being followed. This approach is called ____.

• A)bureaucratic control
• B)objective control
• C)suboptimal
• D)self-control
• E)concertive control

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Definitions:

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