Final answer:
An inventory error affecting ending inventory typically corrects itself over the span of one fiscal year as the misstated ending inventory of one year becomes the beginning inventory of the next.
Step-by-step explanation:
The question you're asking pertains to the period of time it takes an inventory error affecting ending inventory to correct itself in the financial statements. Typically, an inventory error corrects itself within one fiscal year because the misstated ending inventory of the current year becomes the misstated beginning inventory for the following year. This means that, while the income statement will report incorrect cost of goods sold and net income amounts in the year the error occurs, the error reverses and corrects itself when ending inventory is counted at the conclusion of the following fiscal year, provided no new inventory errors occur.
It is worth noting that even though the error self-corrects on the financial statements over two periods, companies should ideally detect and adjust for inventory errors as soon as they are discovered to ensure that all financial reporting reflects the true state of the company's financial health.