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Chapter 8

Prevention and detection of errors and

omissions

So far, we have considered the different types of error which may occur when
recording accounting transactions and whether or not they affect the trial balance.
We have also considered how those errors or omissions, having been identified, can
then be corrected in the accounting records.

It is also reasonable to consider how errors and omissions in accounting records can
be prevented or detected. There are a number of procedures and controls that an
entity may introduce to help prevent and detect errors and omissions in accounting
records. These procedures and controls, including audit, form part of the syllabus for
BA4 Fundamentals of Ethics, Corporate and Legal Governance and are considered
in detail in that Subject.

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