Thank you for posting your question!
Basically what the expression of this formula is getting at is that while financial accounting sets out at the outset to try to accurately portray the economic truth of the situation, unfortunately you can run into issues where there are both errors and/or manipulation. Errors would be unintentional, so like simple data entry mistakes or incorrectly applying accounting principles. Manipulation would mean that there is intentional distortion of what is happening.
I hope that gets you moving in the right direction on this question! Feel free to reach out via message if you have any additional questions beyond that! :)
