Do accounting errors that$$ self$-$correct within two accounting periods require correcting$$ entries?

A$.$

The primary issue in analyzing$$ self$-$correcting errors is whether the books have been closed for the fiscal year. If the books are closed when the error is discovered and the error has not already been$$ offset, there is no entry needed.$$ However, if the books are not closed or if the error has already$$ self$-$corrected when it is$$ discovered, a correction entry is necessary. Comparative financial statements must be adjusted retrospectively in all cases.

B$.$

The primary issue in analyzing$$ self$-$correcting errors is whether the books have been closed for the fiscal year. If the books are closed when the error is discovered and the error is already$$ offset, there is no entry needed.$$ However, if the books are not closed or if the error has not yet$$ self$-$corrected when it is$$ discovered, a correction entry is necessary. Comparative financial statements must be adjusted prospectively in all cases.

C$.$

The primary issue in analyzing$$ self$-$correcting errors is whether the books have been closed for the fiscal year. If the books are closed when the error is discovered and the error is already$$ offset, there is no entry needed.$$ However, if the books are not closed or if the error has not yet$$ self$-$corrected when it is$$ discovered, a correction entry is necessary. Comparative financial statements must be adjusted retrospectively in all cases.

D$.$

The primary issue in analyzing$$ self$-$correcting errors is whether the books have been closed for the fiscal year. If the books are closed when the error is discovered and the error has not already been$$ offset, there is no entry needed.$$ However, if the books are not closed or if the error has already$$ self$-$corrected when it is$$ discovered, a correction entry is necessary. Comparative financial statements must be adjusted prospectively in all cases.