John Yates, assistant commissioner of London's Metropolitan Police, followed Stephenson in answering questions. Yates reportedly reviewed phone-hacking evidence in 2009 and concluded there was no need for a deeper investigation.
"God, I wish I had done something different," Yates told the committee.
Rebekah Brooks is also set to appear before British Parliament on Tuesday morning about the phone hacking.
It is alleged that the tabloid hacked the phones of 4,000 people, from stars to crime victims, to get juicy stories -- all with the encouragement of top editors at the paper and aided by some in the police force.
Members of Parliament and the media reignited the scandal earlier this month after reports the tabloid's journalists hacked the phone of a murdered teen, Milly Dowler. Journalists and a hired private investigator allegedly deleted some voicemail messages in her full mailbox, to hear new ones from concerned family members.
The Murdoch name has been synonymous with News Corp. even before it was incorporated in 1979. Rupert Murdoch, the only son of Sir Keith Murdoch, took over his father's newspaper publishing business, News Limited, after he passed away in 1952.
James Murdoch and News of the World initially told Parliament that phone hacking took place in isolated incidents at News of the World, which has been proven false.
"We now have voluntarily given evidence to the police that I believe will prove that this was untrue and those who acted wrongly will have to face the consequences," James said in an earlier statement. "This was not the only fault. The paper made statements to Parliament without being in the full possession of the facts. This was wrong."
Rupert Murdoch made a rare apology in British newspapers over the weekend.
Considered the heir apparent to his father Rupert Murdoch's media empire, James may face pressure inside and outside the company to resign or, worse, could face arrest as the News Corp phone hacking scandal continues to unravel.
"I don't see how he can survive," Howell Raines, former executive editor of The New York Times told ABCNews.com. "Seems to me that the movement both politically and legally is ominous."
Rupert Murdoch has defended his son, saying that James' position with News Corp. is unchanged. As a protective father, Murdoch said James did not respond too slowly to the phone hacking scandal.
"I think he acted as fast as he could, the moment he could," Rupert Murdoch told the Wall Street Journal July 14.