Accounting Errors that Occur in Companies

Last updated 14 June 2020
Accounting Errors that Occur in Companies

Catastrophic errors by accountants companies and institutions while they are taking the accounting steps, we will talk in this article about the types of accounting errors that the accountant falls during his work and usually, these errors are discovered during the stages of posting or preparing the income statement or the balance of the auditor at the end of the financial periods, and the types of Accounting errors, according to their nature, impact, discovery, and location.

The Nature of Accounting Errors

Deletion Errors

That the accountant commits during his accounting work because of omissions and omissions in the registration or deportation, or that these errors are due to embezzlement, theft, and manipulation of funds, or that these errors are due to the error in recording the financial sums, whether through offering, adding, or other.

Commitment Errors

They are the mistakes that the financial accountant commits due to errors in the process of registration and deportation or addition or offering and sometimes these errors are deliberate because of theft and fraud and sometimes they are due to general errors in registration and deportation.

Technical Errors

 Mistakes made through inconsistencies in accounting entries and procedures, whether they are income, audit, or posting statements, and these errors are not identical to the basic accounting entries.

The Effect of Accounting Errors on Balance

These are the accounting errors that affect the trial balance, and if they occur, the balance of the audit will be an imbalance on the part of the creditor and this process occurs during the balance, registration or posting, and for errors that do not affect the accounting operations, the creditor and debtor sides will be equal.

 Accounting Errors in Terms of Observations and then Discover

In the event that errors are discovered in the financial period or during this period, these errors are corrected with ease and there is no side effect on that. Either if they were discovered after the end of the financial period, it will be difficult to address them because they have ended the financial period and the difficulty of returning to previous years

Accounting Errors in Terms of Where They Occur

Journaling Errors in Notebooks

These are errors that occur when registering financial transactions, and one of these lists is not related to the financial processor has nothing to do with it.

Errors During Preparing Trial Balance

They are errors that occur when the accounts balances in the ledgers are transferred correctly

When preparing the trial balance, then these errors are discovered.

 Errors During Setting up Inventory Limitations

They are errors that occur when accounting principles are adhered to when settlement restrictions are recorded and these errors are discovered

 Errors During Preparing Financial Statements

They are errors that occur due to the lack of appropriate tabulation of the statement of financial position items or as a result of errors mentioned in the transfer of account balances from the trial balance and other balances.

Also read: A Simplified Definition of Commercial Law

Also read: The Importance of Commercial Law

اقراء المقالة باللغة اخرى : العربية

Was the article helpful?

Yes No
×

Sorry for that!

×

Wonderful !

995 Views
هل تنقصك معلومة في المقالة ؟ يشرفنا الرد عليك

Leave a Reply

Your email address will not be published.