Fraud is an intentional act involving the use of deception that results in a material misstatement of the financial statements.

Question

Quizplus · Accepted Answer

This is a correct definition of fraud in relation to financial statements. Fraud involves intentionally misrepresenting financial information through deceptive means. A material misstatement refers to a significant error or omission in the financial statements which may impact the decision-making of users of the financial statements.

Fraud Is an Intentional Act Involving the Use of Deception