November 2020

Earlier, it was mentioned that some errors are disclosed by the trial balance, while others are not. Therefore, in this article, whenever we refer to rectification of errors, we mean unintentional errors. Despite the best efforts of the bookkeeper or accountant and the agreement of the trial balance, errors may still continue to prevail. A […]

Identifying material errors in financial statements requires a thorough understanding of accounting principles and standards. Materiality, as defined by GAAP and IFRS, depends on whether an omission or misstatement could influence the economic decisions of users. For instance, even a small error in revenue recognition could be material if it affects compliance with debt covenants