As we all know, dealing with so many numbers brings mental errors. When something is found to be wrong it not only needs to be corrected, but explained to your corporation or client. When projecting the error to your audience be sure to answer such questions as:
- What type of error is involved?
- What entries are needed to correct the error?
- How are the financial statements going to be restated?
Presenting this material through a speech at a meeting, powerpoint, and so on should be adequate. You must keep the lines of communication open to your client or business is important. They may not understand the numbers but they do need to know why something is wrong and how it can be corrected.
An error can mean big problems in the accounting world. You really put down some good tips on how to deal with it, and how to tell the client. Great job!
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