How to Answer: What is the difference between fraud and error?
Advice and answer examples written specifically for a Senior Auditor job interview.
20. What is the difference between fraud and error?
How to Answer
This is a technical topic covered in the auditing standards under AU-C Section 240. The key difference between fraud and error is that the former is intentional and the latter is unintentional. There are two main types of fraud that an internal auditor should be concerned with: fraudulent reporting and misappropriation of assets (ie theft).
Written by Brian Schuchart on January 4th, 2021
Answer Example
"The main difference between fraud and error is that fraud is intentional and errors are unintentional. As auditors, we are primarily concerned with financial misstatements that are caused by fraudulent financial reporting and misstatements that are caused by theft and other misappropriation of assets."
Written by Brian Schuchart on January 4th, 2021
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