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 affected.

Question

Quizplus · Accepted Answer

The intent to deceive is the primary determinate in the difference between fraud and errors in financial statement reporting. Errors are unintentional misstatements, while fraud involves intentional misrepresentation of financial information. Materiality, level of management involvement, and type of transaction affected may be factors in assessing the impact of fraud or errors, but they do not determine whether an act constitutes fraud or an error.

What Is the Primary Determinate in the Difference Between Fraud