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

Question

Quizplus · Accepted Answer

The primary difference between fraud and errors in financial statement reporting is the intent to deceive. Fraud involves intentional misrepresentation or omission of information with the intent to deceive, while errors are unintentional misstatements or omissions in financial statements. The level of management involved, materiality of the misstatement, and type of transaction affected can also be factors, but the intent to deceive is the main distinguishing factor.

What Is the Primary Difference Between Fraud and Errors in Financial