Answer:
An accounting error is a non-fraudulent discrepancy
in financial transaction documentation. The term is used in financial reporting.
Types
of accounting errors include:
1. Error of omission -- a
transaction that is not recorded.
2. Error of commission -- a
transaction that is calculated incorrectly. One example of an error of
commission is subtracting a figure that should have been added.
3. Error of principle -- a
transaction that is not recorded in
accordance with generally accepted accounting principles ( GAAP). For example,
Purchase of Furniture recorded as expense
instead of recording as Asset. .
