IT blamed for £3.9m loss at Manganese Bronze | AccountingWEB

IT blamed for £3.9m loss at Manganese Bronze

London Taxi manufacturer Manganese Bronze Holdings will restate its 2010 and 2011 financial results after IT and accounting errors came to light.

The company delayed its half year results this week after it emerged the errors had led to a £3.9m understatement of historical losses going back several years.


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Human Error not IT    2 thanks | | Permalink

IT was not to blame here - it was inadequate checking of the brought forward data.

If this had been checked thoroughly it would have been found and corrected.

Garbage in - Garbage out.


or something else ....

GregStoner | | Permalink

From the data here its impossible to tell if it was predominantly an IT or a Human error - but it was an Information Systems (IS) error! It was probably an error at the interface between human and IT elements of the system. Was  "caused" by the  IT or by humans, or by a lack of understanding of how they were interrelated? Almost certainly the latter.

It is the (too common) attempt to treat the IT elements of a system as a separate entity that leads to many IS errors and problems, and why (for example) it is important that staff in accounting roles actualy bother to understand the IT and  ISs and their role in accounting.

In the end almost all IT and IS errors are, of course, human errors - but that is another issue: one of philosophy.