In: Accounting
Discrepancy : is defined as any kind of difference or deficiency in the actual amount and the amount which is in the statement. It is always considered to be something which is to be corrected or otherwise it may lead to false results.
Discrepancy in the financial statements may lead to wrong net
profits.
Example : discrepancy is the difference between the bank statement
and your own account records.
Now the question arises that, what is the employer needs to do when a discrepancy statement is received.
The employer is now required to find out the reason for
discrepancy and work on it. The employer is first person to receive
statement of accounts so he is required to correct such statements
and remove the discrepancies (if any).
Employer is also responsible for the payment of its employees, so
if their is discrepancy in statement then his employees may be paid
more or less and this may cause the changes in expense which are to
be shown in the financial statements.
The employer is required to manage all the discrepancies whenever
he faces and correct them as soon as possible.