Fraud
Fraud involves an intentional act by one or more persons using deception to obtain an unjust or illegal advantage. In a financial-statement audit, fraud may involve fraudulent reporting or misappropriation of assets. The auditor assesses risks and responds but does not provide a guarantee that all fraud will be detected.
Worked example
A manager creates fictitious sales entries to meet a profit target.
Common mistake
An error is unintentional; do not call every material misstatement fraud without evidence of intent.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AA | Direct | September 2026–June 2027 |
| ACCA | AAA (INT) | Direct | September 2026–June 2027 |
| ACCA | BT | Direct | September 2026–June 2027 |
| ACCA | SBL | Direct | September 2026–June 2027 |
| FIA | FBT | Direct | September 2026–June 2027 |