Auditing - Errors and Frauds - Lecture 6

Explanation in EASYWAY!!!!!!!!!!!!!!!!!!!! Errors - Unintentional Mistake Frauds – Intentional Mistake Errors 1 . Errors of Principle 2. Clerical Errors Errors of Principle :- not recording transactions as per Basic of Accounting Principles Clerical Errors :- includes Errors of Omission – ( not as per basic accounting Principle – Over Valuation of Stock etc..) Errors of Commission – ( not recording transaction either wholly or partly) Errors of Duplication – ( Mathematical ( Rs, 10000 instead of Rs. 1000, Casting - Totalling and Posting errors) Compensating errors – ( Effect of one error is compensated with another Error)