Swift action must be done as soon as an accounting error has been spotted. To know how to fix and/or correct the mistake that is considered adequate by Generally Accepted Accounting Principles (GAAP), figuring out what kind of error has been committed. In addition, other factors of the error include how it affects the information in the financial statement and if the financial statement offsets the error. Here, we will show the procedures on how to fix an accounting error.
First off, to correct the error and provide the correct data for a financial statement, there are three things you will have to look out for and ask yourself.