An error represents an unintentional misstatement of the financial statement. it may be material or immaterial. Fraud represents an intentional misstatement of the financial statement which can be material or immaterial.
The distinguishing factor between fraud and error is whether the underlying action that results in the misstatement in the financial statements is intentional or unintentional. Unlike error, fraud is intentional and usually involves deliberate concealment of the facts.
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