Accounting Error

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.

[Category=Data Management ]

Source: WhatIs.com,03 July 2013 09:59:51, http://whatis.techtarget.com/glossary/Data-and-Data-Management