ACCA AA Syllabus B. Planning And Risk Assessment - Definitions - Notes ^{1 / 6}

An intentional act....involving the use of deception to obtain an unjust or illegal advantage

Three main areas of fraud exist:

• Corruption

• Misappropriation of assets

• Financial statement fraud

An unintentional misstatement in financial statements, including the omission of an amount or a disclosure

Examples are:

• A mistake in gathering data from which FS are prepared

• An incorrect accounting estimate due to an oversight

• A mistake in applying accounting principles

An intentional misstatement to mislead users

If a material error is identified, but not corrected it becomes an irregularity