Errors can occur intentionally or unintentionally in companies. Intentional errors are meant to conceal fraud while unintentional errors are due to carelessness. The risk of material errors can be minimized through strong internal controls and accounting procedures. Prior period errors are corrected by adjusting retained earnings or restating prior financial statements. Some examples of accounting errors include mathematical mistakes, improper expense classification, and changes in estimates not made in good faith.
Errors can occur intentionally or unintentionally in companies. Intentional errors are meant to conceal fraud while unintentional errors are due to carelessness. The risk of material errors …