What is the difference between fraud and error?
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Errors: An error is an unintentional misstatement of the financial statements. Example: a mistake in extending price times quantity on a sales invoice.
Fraud: Fraud is an intentional misstatement of the financial statements. Fraud can happen as misappropriation of assets, often called defalcation or employee and fraudulent financial reporting, often called management fraud. Learnerswing
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Cheating can be justified on the statistics on paper, there is no sign of compensation over the accounting time. Errors are detected and corrected as soon as they are detected in a not too long time
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Fraud is to cause harm to someone, to begin with by some means. Error can be related as something that's done unintentionally or without knowingly. VPN for windows
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The difference between fraud and error lies in the intention. Simply put, fraud is an act that is intentionally carried out to benefit certain individuals or groups and causes detrimental effect to others, while errors are acts of unintentional mistake or negligence. novel online
Fraud is a delibrate act done by a cunning person to mislead people about the truth and seriously hurt the intended person or organisation, which if caught, could end up in jail.
Eg : Embezzlement / Misappropriation of cash, stealing from the company resources and showing that the stock was not received or damaged due to unknown reasons etc...
Errors (either major or minor) are made unknowingly (also called mistakes) by anyone who lacks knowledge or due to oversight on the part of the individual, which if caught, can be corrected by taking appropriate measures to prevent it from happening again.
Eg : Typing errors, Missing out on the formula in excel etc....
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