Define fraud and distinguish between the two main categories of fraud.

Question

Quizplus · Accepted Answer

The Answer is In the context of financial statement auditing, fraud is defined as an intentional misstatement of the financial statements.
The two main categories of fraud are fraudulent financial reporting and misappropriation of assets. Fraudulent financial reporting is an intentional misstatement or omission of amounts or disclosures with the intent to deceive users of the financial statements. Misappropriation of assets involve theft of an entity's assets.

Define Fraud and Distinguish Between the Two Main Categories of Fraud