What Are The Types Of Accounting Errors?

By Audit The observation and analysis of a large number of account errors found in the work can classify account errors as follows:

According to the inertial classification of negligent errors, they can be divided into frequent errors and accidental errors. For example, some accountants, if they do not distinguish between 9 and 4, they make frequent mistakes; However, if one digit is missing in manual calculation, it is an accidental error.

According to the impact of negligent error, it can be divided into absolute error and relative error. On the whole, it is an absolute error that affects the enterprise's operating results. For example, if the income is not recorded in the account, it is an absolute error that makes the operating results untrue. On the whole, it is a relative error that does not affect the enterprise's operating results. For example, if the profit of last month increases and the profit of this month decreases due to various reasons, it is a relative error that does not affect the overall results.

Negligently wrong form Classification can be divided into substantive errors and formal errors. Errors affecting the content of accounting are material errors, such as errors in accounting treatment or calculation. Errors that do not affect the content of accounting are formal errors. If you use pencil or ball pen to keep accounts, it is a formal error.

According to the attribute classification of fault error, it can be divided into principle error and technical error. Any error caused by violation of accounting theories, systems and regulations is a principle error; All errors in bookkeeping transactions are technical errors.

According to the degree of fault, it can be divided into serious Errors and minor errors. Any error that occurs enough to affect the judgment of the financial statements is a serious error, and the factory director (manager) must point out and correct such errors; On the contrary, if any error occurs that is not enough to affect the judgment of the financial situation, that is, a general error or a minor error occurs, the factory director (manager) only needs to remind or even ignore it, and let the accountants correct it by themselves.