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The past year was also marked by revelations of material accounting errors by large companies. Investors were caught off guard (especially minority shareholders) and incurred losses in some cases that


Accounting errors are unintentional mistakes. They result from an error or unintended interpretation, while fraudulent accounting is the intentional manipulation of financial statements or tax declarations for personal or corporate gains.


Accounting errors and irregularities can occur for various reasons, including:


1. Human error: common mistakes include duplicate entries, transposed digits, and missing numbers;


2. Faulty systems;


3. Incorrect application of accounting principles and standards;


4. Misunderstanding of rules.


Accounting errors undermine the credibility of the company, waste resources, and impair the reliability of information needed for business decision-making.


In three M&A transactions advised by Terus Consultoria, certain transaction values were questioned due to the application of professional skepticism. 


Accountants and lawyers were involved to address doubts, and in one of the transactions, a material error was revealed, significantly impacting the selling price of the company we advised.


Once these effects were remedied, the deal was concluded at higher and more satisfactory values for the shareholders.


Examples like these are prevalent in medium-sized companies, and they deserve the guidance of business and deal advisors such as Terus Consultoria, which, with professional skepticism, guides operations and involves accounting experts and specialists when necessary.


"Terus, intelligence, advisory, concrete cases, and objective actions!"


Contact Terus right now: contato@terusconsultoria.com.br / +55 011 2503-6747



 
 
 

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