The factor which distinguishes an error from fraud and other irre… - Vidyadip

MCQ

The factor which distinguishes an error from fraud and other irregularity is _________.

A
Whether it is a dollar amount or a process.
✓
Intent
C
Materiality
D
Whether it is a caused by the auditor or the client.

✓

Answer

Correct option: B.

Intent

Errors are defined as the errors done while doing the accounting without any intention.

These has happened due to either ignorance or lack of accounting knowledge.

Frauds are always done with an intention of doing something wrong.

Hence, intent is the factor which distinguish the error and fraud.

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