Accounting Error
Business Dictionary:
Accounting Error
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accounting error
inaccurate measurement or representation of an accounting-related item not caused by intentional fraud . An error may be due to negligence or may result from the misapplication of Generally Accepted Accounting Principles (GAAP) .
Accounting Errors
Unintentional mistakes in financial statements. Accounted for by restating
the prior-year financial statements that are in error.
Errors and Omissions Insurance ...
Accounting Error - An error in an accounting item that was not caused intentionally. An accounting error can include discrepancies in dollar figures, or might be an error in using accounting policy incorrectly (i.e., a compliance error).
Correction of an accounting error
The correction of an accounting error is the retroactive correction of an error in a prior period, generally with restatement.
Cost ...
shrinkage The discrepancy of inventory recorded on a firm's records, and the inventory on hand, due to theft, loss or accounting error. shutdown The stoppage of production by a firm. SIA Acronym for Securities Industry Association.
Missed deadline or responsibility
Model / system misoperation
Accounting error / entity attribution error
Other task misperformance
Delivery failure
Collateral management failure
Reference data maintenance ...
is used when no special journal exists to record a transaction, usually when a transaction occurs infrequently. Examples are the declaration of a dividend, correction of an accounting error, and an appropriation of retained earnings/profit.
This happens when an accounting error or other discrepancy comes to light, and a company must reissue reports for past periods. Inaccurate or inconsistent earnings statements may make P/E a less reliable measure of stock value.
If this is given as an audit issue position, review Utley v. Commissioner, 906 F.2d 1033 (5th Cir. 1990). It did not allow the taxpayers to recharacterize a transaction contended to be an accounting error.
 See also: Fraud, Accounting period, Expense, Accounting equation, Accounting procedure
  
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