What is the primary determinant 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 primary determinant in the difference between fraud and errors in financial statement reporting is the intent to deceive. Fraud involves intentional misrepresentation or concealment of information with the purpose of misleading others, while errors are unintentional misstatements or omissions in financial statements. The materiality of the misstatement, the level of management involved, and the type of transaction affected can also be factors in determining the severity and impact of the misstatement, but they are not the primary determinant in distinguishing between fraud and errors.

What Is the Primary Determinant in the Difference Between Fraud