Page 265 - F1 - AB Integrated Workbook STUDENT 2018-19

Fraud, fraudulent behaviour, and their prevention in business

The meaning of fraud

1.1 Definition

Fraud is an intentional act involving the use of deception to obtain an
unjust or illegal advantage – essentially ‘theft by deception’. Fraud is
a criminal offence, punishable by a fine or imprisonment.

 Error – refers to unintentional mistakes

 Irregularity – something contrary to a particular rule or standard

 Misstatement – something stated wrongly. Misstatement can arise due to
fraud, irregularity or error.

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