A new accuracy-preserving parallel algorithm employing compact schemes is presented for direct numerical simulation of the Navier-Stokes equations. Here the connotation of accuracy preservation is having the same level of accuracy obtained by the proposed parallel compact scheme, as the sequential code with the same compact scheme. Additional loss of accuracy in parallel compact schemes arises due to necessary boundary closures at sub-domain boundaries. An attempt to circumvent this has been done in the past by the use of Schwarz domain decomposition and compact filters in “A new compact scheme for parallel computing using domain decomposition,” J. Comput. Phys. 220, 2 (2007), 654--677, where a large number of overlap points was necessary to reduce error. A parallel compact scheme with staggered grids has been used to report direct numerical simulation of transition and turbulence by the Schwarz domain decomposition method. In the present research, we propose a new parallel algorithm with two benefits. First, the number of overlap points is reduced to a single common boundary point between any two neighboring sub-domains, thereby saving the number of points used, with resultant speed-up. Second, with a proper design, errors arising due to sub-domain boundary closure schemes are reduced to a user designed error tolerance, bringing the new parallel scheme on par with sequential computing. Error reduction is achieved by using global spectral analysis, introduced in “Analysis of central and upwind compact schemes,” J. Comput. Phys. 192, 2, (2003) 677--694, which analyzes any discrete computing method in the full domain integrally. The design of the parallel compact scheme is explained, followed by a demonstration of the accuracy of the method by solving benchmark flows: (1) periodic two-dimensional Taylor-Green vortex problem; (2) flow inside two-dimensional square lid-driven cavity (LDC) at high Reynolds number; and (3) flow inside a non-periodic three-dimensional cubic LDC with the staggered grid arrangement.