The Difference Between

Differences between fraud and error?

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2012-03-06 13:31:28
2012-03-06 13:31:28

differences between errors and frauds

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An error represents an unintentional misstatement of the financial statement. it may be material or immaterial. fraud represents an intentional misstatement of the financial statement which can be material or immaterial.


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THE SHORTAGE CAN BE EITHER DUE TO ERROR OR FRAUD.some of the errors which can cause shortage are;errors of omissionerrors of original entryerror of principleerror of commissionall these errors can be corrected but fraud is treated as THEFT!


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The difference between auditing and fraud examination is that with auditing they are simply checking to make sure all of the numbers on the accounting books add up correctly. However fraud examination is done when there has been proof of fraud.


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Random error is the error made because of some calculation mistakes but systematic error is the difference between the real value and the value that you found.



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