What is accounting error? - Definition from WhatIs.com
Part of the Business terms glossary:

What is an accounting error?

An accounting error is a non-fraudulent discrepancy in financial documentation. The term is used in financial reporting.

Types of accounting errors include:

  • Error of omission -- a transaction that is not recorded.
  • Error of commission -- a transaction that is calculated incorrectly. One example of an error of commission is subtracting a figure that should have been added.
  • Error of principle -- a transaction that is not in accordance with generally accepted accounting principles ( GAAP). One example of an accounting error of principle is an expenditure that is placed in an inappropriate category.

If a company discovers that an accounting error significantly affected a previous report, it usually issues a restatement of the original release.

Learn More About IT:

> Linda Tucci explains 'How the SEC's proposed IFRS will affect your accounting systems.'
> John W. Day provides a guide to identifying and correcting accounting errors.
>A.C. Sondhi & Scott A.Taub co-authored 'Revenue Processes at Risk for Compliance Failures and Restatements.'

This was last updated in March 2009
Posted by: Margaret Rouse

Related Terms

Definitions

  • business model innovation

    - Business model innovation is the implementation of unique concepts to support a company's viability, including the development of new processes for delivering products and services to customers. (SearchCIO.com)

  • authentic leadership

    - Authentic leadership is a management approach in which the head of a group or company governs and connects with his followers in an honest, open manner. (SearchCIO.com)

  • revenue cycle management (RCM)

    - Revenue cycle management (RCM) software tracks patient care episodes from registration and appointment scheduling to the final payment of a balance. (SearchHealthIT.com)

Glossaries

  • Business terms

    - Terms related to business, including definitions about project management and words and phrases about human resources, finance and vertical industries.

  • Internet applications

    - This WhatIs.com glossary contains terms related to Internet applications, including definitions about Software as a Service (SaaS) delivery models and words and phrases about web sites, e-commerce ...

Ask a Question. Find an Answer.Powered by ITKnowledgeExchange.com

Ask An IT Question

Get answers from your peers on your most technical challenges

Ask Question

Tech TalkComment

Share
Comments

    Results

    Contribute to the conversation

    All fields are required. Comments will appear at the bottom of the article.