Financial Reporting Error

Financial Reporting ErrorThe main purpose of every public company from the beginning of a financial year to its end is to have good financial results, followed by proper reporting of the same to the internal and external stakeholders for the long term growth of the company. It is very important to have a proper reporting of the financial reports prepared by the company which is done through the help of the auditors who perform their task in such an order that these reports should be helpful to the users of the information. When some part of this reporting goes wrong it is known as financial error.These types of error arise due to fraudulent financial reporting for a continuous period. These financial errors may affect the long term growth of the company if not treated properly and various precautions are not taken by the government or the company. The other reason for the occurrence of the financial error is the lack of proper internal control in the company which tends to lose the control over such matters at the base root level. Such a financial error was faced by one of the multinational companies named as Enron Corporation. This