Definition of reliability

1. in auditing, confidence that the financial records have been properly prepared and that accounting procedures and internal controls are correctly functioning.
2. in financial accounting theory, term describing information that is reasonably free from error and bias and accurately presents the facts. Verifiability exists when a reconstruction of financial data, following acceptable accounting practices, results in the same actual results previously attained; further, two accountants working independently will come up with similar results. Representational faithfulness exists when there is agreement between a portrayal (description) and the item it is supposed to represent (validity). Information is neutral when it does not favor one company over another. See also verifiable.
3. probability that a product or process will perform satisfactorily over a period of time under specified operating conditions.

1. in auditing, confidence that the financial records have been properly prepared and that accounting procedures and internal controls are correctly functioning.
2. in financial accounting theory, term describing information that is reasonably free from error and bias and accurately presents the facts.

in research, probability that a measurement is free from random error and yields consistent results; that is, the same results can be expected at another time. For example, a reliable promotion test means that a similar promotion will yield similar results.