Why this is mistaken
Balance proves only that debits equal credits. It does not prove correct accounts, periods, tax, comparative presentation, EPS, cash flows, disclosures, or filing response. Tie the entry to independently corrected balances and every affected statement.
Where to watch
When this mistake may appear
- The proposed correction entry balances.
Check your work
Your work may contain this mistake if:
- Stops before rebuilding comparative statement columns and disclosure effects.