Editing Accounting (section)

== Fraud and error ==
Accounting [[fraud]] is an intentional misstatement or omission in the accounting records by management or employees which involves the use of deception. It is a criminal act and a breach of civil tort. It may involve collusion with third parties.<ref name="IAASB-ISA240">{{Citation | title =2018 Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements | publisher =The International Auditing and Assurance Standards Board | date =December 2018 }}</ref>

An accounting error is an unintentional misstatement or omission in the accounting records, for example misinterpretation of facts, mistakes in processing data, or oversights leading to incorrect estimates.<ref name="IAASB-ISA240"/> Acts leading to accounting errors are not criminal but may breach civil law, for example, the tort of [[negligence]].

The primary responsibility for the prevention and detection of fraud and errors rests with the entity's management.<ref name="IAASB-ISA240"/>