Q: Under what circumstances do corporate accounting errors rise to the level of criminal activity?
A:
Mistakes happen - it's the cover up that becomes the crime. Depending on the nature of the error, it's always better to correct immediately. If there is a reporting requirement (shareholders, SEC, etc.), then don't hesitate. There may ( or may not) be a civil/administrative fine later, but that is the cost of doing business. It would be advisable to work through an attorney for any self-reporting to ensure there are no miscommunications and that something civil doesn't become criminal.
On the other hand, if the accounting errors were intentional that becomes a crime. The question becomes whether it was a corporate approved practice or just the malfeasance of one individual.
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