Question

difference between cumulative eqrrors and compensating errors ​

Answer 1

Cumulative errors and compensating errors ​

Explanation:

• Errors are errors that can be traced back to the viewer's carelessness, lack of experience, negligence, misjudgment, or confusion.
• They are not subject to any mathematical rule (law of probability), and they might be huge or little, positive or negative. They are unquantifiable. They can be detected, though, by redoing the entire procedure. If a mistake goes undiscovered, it has a significant impact on the final result.
• As a result, each value to be recorded in the field must be verified by a separate field observation. Here are some mistakes to look out for: An accounting error that compensates for another accounting error is known as a compensating error.
• Because the net effect is zero, these errors might be difficult to identify when they occur within the same account and reporting period. An account's statistical analysis may not reveal a compensating inaccuracy.
• An inaccuracy that gradually rises in magnitude or relevance over the course of a series of measurements or calculations particularly : a recurrence of the same mistake in the same sense or with the same sign.  
• Cumulative error refers to a mistake that occurs in the same direction during the chaining process. With the process of chaining, this type of error accumulates. The compensating error is an error that occurs in both directions during the chaining process.