Consider adapting the cost of quality framework to financial reporting issues. Assign costs to one of four categories: Prevention, Appraisal, Internal failure, and external failure, where the categories refer to financial reporting activities and the consequences of poor, or even illegal, financial reporting. Required: Classify the following costs incurred for financial reporting activities into the four categories. Category d Activity a Extra work done by external auditors to complete the audit because new employees made a lot of errors Effects of bad publicity on stock prices because publication of financial statements was delayed in order to correct errors in the statements C Employee training new accounting regulations Drop in stock price from bad publicity after the chief executive gets sentenced to 10 years in prison e Fines for failing to comply with accounting regulations 1 Design of information systems to keep out hackers Design of internal control systems to minimize errors in data entry h Internal auditors' review of internal controls in requirement (g) above