What are Qualitative Characteristics of Accounting Information

Qualitative characteristics of accounting information are the symptoms which give us the signals about the quality of accounting information. To know qualitative characteristics of accounting information is important for internal control and auditing.



When a doctor sees the symptoms of any disease, he starts his treatment. Like this, to check the qualitative characteristics of accounting information is the duty of internal control manager and auditor.In simple words, if following characteristics of accounting information, then this type of accounting information is useful for decision making.


1. Understandability 

When we read a book, we find it good, if we understand its written language. Accounting is the language of business, if accounting information can easy be understood by its users, then it will be the qualitative characteristics.


2. Relevance 

All important accounting information should be updated because users can use them at current time. Many users of accounting information needs to take estimation on the basis of updated information. This capacity should be in qualitative accounting information.


3. Reliability

Today, we are living on scientific age. In this age, we need the base of our trust. If the accounting information are free from errors and mistakes, it will be reliable for users. Internal control management and auditor should tries to best to find the errors and rectify them fastly.


4. Comparability and Consistency 

One of the most important qualitative characteristics of accounting information that it must be comparable. Comparability means the capacity of accounting information to match with other enterprises' accounting information and other time period of same enterprise's accounting information. It can be possible with consistency convention.


Related : Accounting Glossary