Which of the Following Statements Is Most Correct Regarding Errors

question 73

Multiple Choice

Which of the following statements is most correct regarding errors and fraud?

• A) An error is unintentional, whereas fraud is intentional.
• B) Frauds occur more often than errors in financial statements.
• C) Errors are always fraud and frauds are always errors.
• D) Auditors have more responsibility for finding fraud than errors.

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Definitions:

Cash Inflows

Money received by a business from its various activities, including sales, financing, and investments.

Discounting

The process of determining the present value of a payment or a stream of payments that is to be received in the future.

Future Amount

The projected value of a current asset or amount of money at a specified future date, taking into account factors like interest or growth rates.

Present Value

The current valuation of future money or cash flow series, factoring in a predetermined interest rate.