Browse Definitions :
Definition

accounting error

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
SearchCompliance
  • smart contract

    A smart contract is a decentralized application that executes business logic in response to events.

  • compliance risk

    Compliance risk is an organization's potential exposure to legal penalties, financial forfeiture and material loss, resulting ...

  • information governance

    Information governance is a holistic approach to managing corporate information by implementing processes, roles, controls and ...

SearchSecurity
  • social engineering

    Social engineering is an attack vector that relies heavily on human interaction and often involves manipulating people into ...

  • distributed denial-of-service (DDoS) attack

    A distributed denial-of-service (DDoS) attack is one in which multiple compromised computer systems attack a target, such as a ...

  • password cracking

    Password cracking is the process of using an application program to identify an unknown or forgotten password to a computer or ...

SearchHealthIT
SearchDisasterRecovery
  • change control

    Change control is a systematic approach to managing all changes made to a product or system.

  • disaster recovery (DR)

    Disaster recovery (DR) is an organization's ability to respond to and recover from an event that affects business operations.

  • risk mitigation

    Risk mitigation is a strategy to prepare for and lessen the effects of threats faced by a business.

SearchStorage
  • storage security

    Storage security is the group of parameters and settings that make storage resources available to authorized users and trusted ...

  • cloud storage

    Cloud storage is a service model in which data is transmitted and stored on remote storage systems, where it is maintained, ...

  • cloud data management

    Cloud data management is a way to manage data across cloud platforms, either with or instead of on-premises storage.

Close