Correction of Errors

Question 1

Definition of Error

Answer 1

Refers to an UNintentional misstatement in FS including the omission of an amount or a disclosure, including:

1. Mistake in gathering or processing data from which FS are prepared
2. Incorrect accounting estimate arising from oversight or misinterpretation of facts
3. Mistake in the application of accounting principles relating to measurement, recognition, classification, presentation, or disclosure

Question 2

Definition of Fraud

Answer 2

Refers to the intentional act by one or more individuals among management, those charged with governance, employees, or third parties, involving the use of deception to obtain an unjust or illegal advantage.