People need to be able to rely on the figures and facts reported in financial statements and ensure that they are truthful. It must be verifiable. Free from errors. For example, you can always look at a receipt to see the amount of an expense. As you already know, when you are audited, you need to verify all transactions that have occurred in your business. Comparable and consistent: Furthermore, comparability refers to the ability of information to be compared with that of other similar companies, without comparability the accounts would be of little use Frank and Alan (1999). General Accepted Accounting Principles (GAAP) allow certain choices among different accounting methods for depreciation and inventory management. If a company's financial statement has been prepared differently from other companies in the industry, or even prepared differently from previous statements, it is likely that users will not be able to compare statements between companies and over time. Comparability adds a degree of transparency to financial statements by allowing comparisons over time and between them