Accounting For Errors In an Intermin Period


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Howdy,

I just started at this firm, and have found a few errors. For June, Two days worth of sales were ommited. For July, the margin impact (Sales - COGS) was credited to an expense account, increasing net income.

I know how to account for an error in a closed period (restatement). How do you account for an error in an interim period? Do I need to restate June and July? Can I just do a journal to tie everything out in October?

We are a private firm, owned by a public firm, that had our last review in September.

Thanks for the help!!
 
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kirby

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Well, first it depends on the amount of the error. If it was a significant misstatement then - as the third qtr just closed- you need to tell your supervisor. But sounds like it is not. In which case , just make the correcting entry in Oct and go on with your life...
 

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