Error of Ommission

This query is : Resolved

Rangarajan (Querist)
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01 July 2008 How will you find a ommission of a bill from entering the accounts when you do not have or seen the bill? That is the bill is ommitted from accounting because of unintentional misplacement of the bill by the accounts department. The accounts department is not aware of the ommission.

How will an auditor will find the above query while vouching or general ledger scrutiny?

PC-www.bharadwajinstitute.com

PC-www.bharadwajinstitute.com (Expert)
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02 July 2008 It is an error of ommission only...
COMPLETE OMMISSION

Then.... auditor has to rectify the error through the accounting entry....

Rangarajan

Rangarajan (Querist)
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02 July 2008 Thanks Mr. Palanichamy.

But I want to know how the ommission will be found at the time of vouching or GL Scrutiny.

The error of complete ommission can be rectified by passing the entry, but how will an auditor know such ommission has occurred.

Hope to hear from you soon.

With Regards
Rangarajan.J

Amit Bajaj

Amit Bajaj (Expert)
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03 July 2008 Dear Rangarajan

Errors of ommission can be found out of following:
(1) subsequent date verification where the accountant might have accounted the bill.
(2) Analaytical review, where you know what should have been your expected balance and you arrive at that number
(3) Ledger serutiny, if it is recurring bill, will through out during ledger srtny.

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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05 October 2008 Studying liabilities for goods supplied, Payments made for which bill not accounted etc can also be of help. Confirmation of balances can be another tool.

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