Concept:In course-of-action questions, a proposed action is valid if it is practical, immediate, and capable of solving or reducing the problem mentioned in the statement.
Explanation:The statement says that significant errors were found in the Accounts Department of a manufacturing company.
Course of action I suggests appointing an experienced team of auditors to thoroughly review the accounts.
This step is essential because a detailed audit will reveal the exact nature, extent, and root cause of the errors.
Thus, action I is a practical and corrective measure that directly helps in resolving the problem.
Course of action II suggests initiating a formal inquiry to identify the employees responsible for the discrepancies.
Account errors may indicate negligence or misconduct, so fixing responsibility is necessary to maintain discipline and internal control.
Action II is also an immediate and logical step that works along with the audit to prevent future mistakes.
Therefore, both actions are complementary and appropriate in this situation.
Answer:Both courses of action I and II follow.
Correct option: D.