[yayoo]

If an accountant is unable to correct an error made, does he have to disclose that? If yes, to whom would he disclose the error??

Thank you in advance

[paraclete]

What sort of error do you speak of? Accountants correct errors they find in the accounts and audit exists to find and report errors. It is unethical to conceal an error and illegal to allow significant errors to be incorporated in the accounts If there is a problem this can be disclosed in notes to the accounts for example; at one time I refused to allow employee entitlements to be calculated on a basis that I considered introduced a distortion into the accounts. The accounts were qualified by audit but were presented with disclosure

[yayoo]

So I understand from your answer that if the error affects the business and its reports then we have to disclose that error to ensure that the owner or the manager is aware of the error instead of covering it up.. Right

[paraclete]

so I understand from your answer that if the error affects the business and its reports then we have to disclose that error to ensure that the owner or the manager is aware of the error instead of covering it up.. Right

No only do we have a responsibility not to cover up errors but if reports have been presented which significantly distort results we must report this to management. Failure to keep management aware may result in accountants losing crediability with management.
In the same way significant errors in previous reporting must be reported to Shareholders, eg; if the previous years accounts contained a significant error which is adjusted in this years accounts then the reason must be included in the notes to the accounts. Openness and transparency is necessary to ensure that those who rely on our reports can do so with assurance. Preserving your position by covering errors will ultimately mean you loose crediability and may be fired

[yayoo]

Thank you so much for your help.
I just want to know if my previous answer is correct or not.. assuming after many attempts to correct the error, the accountant is unable to correct it.

[paraclete]

Thank you so much for your help.
I just want to know if my previous answer is correct or not.. assuming after many attempts to correct the error, the accountant is unable to correct it.

I don't understand what you mean, there is always a way to correct it even if it means writing off the discrepancy to balance the books. I have already told you you need to let management know if it is significant, if it is minor then fix the problem

[yayoo]

All right, Thaaaaaank you soooo much for your heellp I really appreciate that :)