Which of the following is essential for preventing or discovering accounting errors?

The selection of "D. All of the above" highlights the comprehensive approach needed to prevent or discover accounting errors. Each of the components listed contributes uniquely to maintaining the integrity of financial records.

Double-entry bookkeeping is fundamental because it ensures that every financial transaction affects at least two accounts, promoting a balance in the accounting equation: assets must equal liabilities plus equity. This system reduces the likelihood of errors since any discrepancies will manifest as imbalances in accounts.

Internal controls are essential for safeguarding assets and ensuring the accuracy of financial reporting. These controls encompass a range of policies and procedures designed to prevent fraud, ensure compliance with regulations, and promote operational efficiency. Examples include segregation of duties, authorization requirements, and regular audits, which collectively create a system of checks and balances within an organization.

Inspection of the trial balance serves as an important step in identifying discrepancies. A trial balance summarizes all account balances and helps confirm that debits equal credits. If the trial balance does not balance, it indicates an error that needs investigation. Regular review of the trial balance can lead to the early detection of mistakes, allowing for timely correction before financial statements are finalized.

By combining double-entry bookkeeping, robust internal controls, and periodic inspections of the trial balance, organizations can significantly enhance their ability to