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. Which traditional management function was Interpublic not using effectively prior to its discovery of fraudulent activities?
A)implementation
B)goal-setting
C)control
D)suboptimization
E)benchmarking

Question

Quizplus · Accepted Answer

Interpublic was not effectively using the control function, which involves monitoring activities to ensure they are being accomplished as planned and correcting any significant deviations. The discovery of accounting errors and fraudulent activities indicates a failure in the control processes.

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