Question

Which of the following statements is the most correct regarding errors and fraud? Group of answer choices Errors are always fraud and frauds are always errors. Auditors have more responsibility for finding fraud than errors. Frauds occur more often than errors in financial statements. An error is unintentional, whereas fraud is intentional.

Answer 1

Answer:

An error is unintentional, whereas fraud is intentional.

Explanation:

Financial accounting is an accounting technique used for analyzing, summarizing and reporting of financial transactions like sales costs, purchase costs, payables and receivables of an organization using standard financial guidelines such as Generally Accepted Accounting Principles (GAAP).

An auditor refers to an authorized individual who review, examine and verify the authenticity and accuracy of business financial records or transactions.

Thus, an audit of historical financial statements most commonly includes the balance sheet, income statement, statement of cash flows, and the statement of changes in stockholders' equity.

Hence, the statement which is the most correct regarding errors and fraud is that, an error is an unintentional that can happen to any financial expert, whereas fraud is intentional.