What question did this study set out to answer?

The aim is to investigate the frequency and types of errors in financial data from FASB disclosures and related databases.

Additional Considerations When Using the FASB Bank of Changing Price Information.

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This analysis examines data errors in accounting disclosures, highlighting the need for careful verification in financial reporting.

The aim is to investigate the frequency and types of errors in financial data from FASB disclosures and related databases.
Analyzed income and depreciation errors for a sample of 171 firms from 1979 to 1982.
Compared FASB data with Compustat and Value Line historical cost databases.
Identified and reported error rates in annual reports for income and depreciation.
Found an income error rate of 12.9% for 1981.
Reported depreciation error rates ranging from 23.4% to 39.8% over the four year period.
Indicated the necessity of manual checking for accuracy in financial reports.

Thomas et al. (1986) studied this question.

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