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How "compensating Errors" are a botheration from Accounting/Auditing point of view?

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Question added by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.
Date Posted: 2014/08/17
FITAH MOHAMED
by FITAH MOHAMED , Financial Manager , FUEL AND ENERGY CO for transportion petroleum materials

compensating errors are:

 errors in computation or in recording of accounting data, that is   balanced by an equal and opposite error

 

*- compensating errors do not show up in the total ( trial balance),

*- they are difficult to  find by statistical methods..

 

Khaled Abdelrehim ACCA DipIFR CMA
by Khaled Abdelrehim ACCA DipIFR CMA , Financial Analysis Assistant General Manager , Khalda Petroleum Company

Since compensating errors do not show up in the total, they are difficult to locate through statistical methods and that is why they are bothering auditors.

ايمن محمد عاطف محمد
by ايمن محمد عاطف محمد , Director of the control and regulation unit , ACOLID

  errors equal in amount but opposite in sense that cancel each other

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