consistency principle

Definition

An accounting principle that states that a business should stick with the same accounting system once one has been chosen, and that any change of accounting systems must be thoroughly documented. Auditors are charged with maintaining consistency, to ensure that a company's financial records remain accurate and coherent.

Use this term in a sentence

You should try and follow the consistency principle so that you know you are doing things the right way at all times.

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We were firm believers in the consistency principle, so when someone tried to suggest a change, there was immediate and stiff resistance to the idea.

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My company president was dismayed to learn that he should not try to switch accounting systems at this point because the consistency principle suggested the new system would be a complete mess.

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consistency consistent reporting