Accounting Error

DEFINITION of 'Accounting Error'


Accounting error should not be confused with fraud, which is an intentional error in an accounting item, usually to hide or alter data for personal gain.

BREAKING DOWN 'Accounting Error'

By doing what ever it can to follow accounting standards such as the Generally Accepted Accounting Principles (GAAP), and maintaining internal controls, a company can easily minimize accounting errors. Corrections of the errors are shown later, in a restatement of comparative financial statements.

  1. Error Of Principle

    An accounting mistake in which an entry is recorded in the incorrect ...
  2. Non-Sampling Error

  3. Transposition Error

  4. Rounding Error

    A mathematical miscalculation caused by altering a number to ...
  5. Tracking Error

  6. Type I Error

    A type of error that occurs when a null hypothesis is rejected ...
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