What steps should be taken if a payment error is found?

The correct choice outlines an essential and proactive approach to handling payment errors. When a payment error is discovered, it's critical to promptly notify relevant parties, such as supervisors, financial managers, or auditors, as they are necessary for assessing the situation and facilitating corrective measures. Initiating corrective actions is equally important, as it helps to rectify the error swiftly, minimizing the potential for financial loss or other complications that could arise from the mistake.

By taking immediate steps, the organization can ensure that the error is addressed effectively, uphold accountability, and maintain integrity in financial operations. This process often includes reviewing the error's nature, determining its cause, and implementing adequate measures to prevent recurrence, which strengthens overall financial management and compliance with policies and regulations.