What is the primary determinate in the difference between fraud and errors in financial statement reporting?
A)The materiality of the misstatement.
B)The intent to deceive.
C)The level of management involved.
D)The type of transaction effected.

Question

Quizplus · Accepted Answer

The main determinant in the difference between fraud and errors in financial statement reporting is the intent to deceive. Fraud involves intentional misrepresentations or omissions of material facts, whereas errors are unintentional mistakes in the financial statement reporting. The materiality of the misstatement, level of management involved, and type of transaction affected may also be considered in determining the significance of the misstatement, but they are not the primary determinants in distinguishing fraud from errors.

What Is the Primary Determinate in the Difference Between Fraud