A deviation from standard that occurs because of an incorrect number resulting from improper or inaccurate accounting systems or procedures is an example of a(n):
A) Random error.
B) Prediction error.
C) Implementation error.
D) Modeling error.
E) Accounting error.

Question

Quizplus · Accepted Answer

An accounting error is a deviation from standard that occurs because of an incorrect number resulting from improper or inaccurate accounting systems or procedures. This is not a random error, which is caused by chance or unforeseeable circumstances, nor is it a prediction error, which is a difference between predicted and actual values. It is also not an implementation error, which results from improper execution of a correctly designed process, nor is it a modeling error, which occurs when the assumptions used in a model do not accurately reflect reality.

A Deviation from Standard That Occurs Because of an Incorrect