there a financial life after an error?
In many cases accountants make their judgment on a financial report
based on samples taking at random. An approval is issued when the
data in the report satisfies a given reliability interval (often a
reliability of 95% is used), i.e., the errors found in the samples is
not exceeding a certain critical value. In reality quite sometimes
corrections are made when the reliability interval is exceeded. Often
this type of corrections is carried out with respect to an isolated
part in the financial report. After the correction the errors found in
those part are now left out of consideration in the total counts of
errors. Regarding this way of (ac)counting, there is now a dispute
between the Rekenkamer and the auditing companies. The discussion is
until now undecided, but it is a very relevant one.