Prior period error

A prior period error is an omission from, or a misstatement of, prior-period financial statements. Such an error must have been caused by the failure to use, or the misuse of, information that was available when the financial statements were authorized for issuance and that could be expected to have been obtained. Examples of a prior period error are fraud, calculation mistakes, factual misrepresentations or oversights, and mistakes in applying accounting policies.