ERROR OF OMISSION is an error which occurs as a result of an action not taken. In accounting, the error occurs when both the entries required for a transaction are completely omitted from the books.

Computerized accounting is quicker and easier than manual accounting and less subject to unintentional error.

Error of compensation means the entries are correctly made but the figures are wrongly posted.

An accounting mistake in which an entry is recorded in the incorrect account, violating the fundamental principles of accounting. An error of principle is a procedural error, meaning that the value recorded was the correct value but placed incorrectly. For example, a company may record personal expenses as business expenses. An error of principle is different than failing to record the item in question ("error of omission"), or recording the wrong value in the correct account ("error of commission"). These errors are referred to as input errors.

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