BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Unlike error, fraud is intentional and usually involves deliberate concealment of the facts. The error refers to an unintentional misstatement in the financial statements, including the omission of an amount or disclosure. So, we can say that the words fraud and error have different meanings.

Detailed explanation-2: -Misstatements can arise from either fraud or error. The main difference between fraud and error is whether the action that resulted in the misstatement was unintentional or whether it was intentional and involves deception.

Detailed explanation-3: -An accounting error should not be confused with fraud, which is an intentional act to hide or alter entries for the benefit of the firm. Accounting errors can include duplicating the same entry, or an account is recorded correctly but to the wrong customer or vendor.

Detailed explanation-4: -Simply put, fraud is an act that is intentionally carried out to benefit certain individuals or groups and causes detrimental effect to others, while errors are acts of unintentional mistake or negligence.

Detailed explanation-5: -An accounting error can include discrepancies in dollar figures, or might be an error in using accounting policy incorrectly (i.e., a compliance error). Accounting error should not be confused with fraud, which is an intentional error in an accounting item, usually to hide or alter data for personal gain.