The primary factor that distinguishes errors from fraud is:
A) whether the underlying cause of misstatement relates to the misapplication of accounting principles or to clerical processing.
B) whether the misstatement is perpetrated by an employee or by a member of management.
C) whether the underlying cause of a misstatement is intentional or unintentional.
D) whether the misstatement is concealed.

Question

Quizplus · Accepted Answer

Errors are unintentional misstatements, while fraud involves intentional misstatements. Other factors such as the cause of the misstatement and concealment may also be present in fraud, but the primary factor that distinguishes it from errors is intent.

The Primary Factor That Distinguishes Errors from Fraud Is