Accounting error

An accounting error is a mistake in the accounting records. An error can fall into a number of areas, such as:

  • Entering a transaction in the wrong account

  • Entering the wrong amount in an account

  • Incorrectly setting the auto reversal flag on an account

  • Incorrectly applying a policy or accounting standard

  • Not entering a transaction at all

Accounting errors do not involve fraud; there is no intent to deceive.

Accounting errors can be reduced by training employees properly and installing detective controls.

Related Courses

Accounting Changes and Error Corrections