Most Errors Are Discovered Automatically Through Proper Use of the Double-Entry

question 76

Essay

Most errors are discovered automatically through proper use of the double-entry system or by the internal or external auditors.However, some errors escape detection until after they have been included in the published financial statements of a company.
Required:
Describe three types of errors that occur in financial statements and indicate the appropriate corrective action to take when the errors are discovered.

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Definitions:

Filtering

The process of screening and then manipulating a message from a sender before passing it on to the intended receiver.

Communication Barrier

Obstacles that impede the flow of information between communicators, potentially leading to misinterpretation or loss of message.

Emotions

Complex psychological states involving physiological changes, feelings, and behaviors in response to stimuli.

Critical Feedback

Constructive criticism or evaluative information provided to an individual or group with the aim of improving performance or behavior.