Accounting irregularity

An accounting irregularity is an accounting term for practise that does not conform to the normal laws, practises and rules of the accounting profession, having the deliberate intent to deceive or defraud. Accounting irregularities can consist of intentionally misstating amounts and other information in financial statements, or omitting information required to be disclosed. Accounting irregularities are commonly distinguished from unintentional mistakes or errors.^[1][2]

Accounting irregularities are often committed as a means to an end; for example assets misappropriations may be concealed by using irregular accounting entries and profit overstatements may inflate the year end bonuses to perpetrators.

References

1. John W. Hendrikse, Leigh Hendrikse, "8.6 Accounting Irregularities", Business governance handbook, p. 84
2. Benny K B Kwok, Accounting irregularities in financial statements