Errors and omissions refer to mistakes or oversights that occur in professional work, particularly in the context of financial reporting, accounting, and advisory services. These errors can lead to inaccurate financial statements, misrepresentations, or incorrect advice, which may result in liability for professionals if clients suffer losses as a consequence. Understanding the implications of errors and omissions is crucial for implementing effective risk management strategies and maintaining professional integrity.
congrats on reading the definition of errors and omissions. now let's actually learn it.