Recognition memory requires both retrieval processes and control processes such as criterion setting. Decision criteria were manipulated by offering different payoffs for correct "old" versus "new" responses. Criterion setting influenced the following late-occurring (1,000+ ms), conflict-sensitive event-related brain potential (ERP) components: the stimulus-locked late posterior negativity (LPN) and the response-locked error-related negativity (ERN). The LPN-ERN were most negative to hits under conservative payoff conditions involving conflict between the correct old response and the payoff for new responses. This same conservative-hit condition was most frequently associated with response reversals when fast initial judgments were followed by slower judgments. Postresponse ERP activity may index conflict-sensitive processes underlying postretrieval cognitive control mechanisms involved with assessing responses to current items and updating response criteria on later trials.