Fraud & Error in Auditing

In my understanding fraud is dishonesty calculated for advantage and a person who is dishonest may be called a fraud, fraud is a specific crime with certain features. As I know fraud is most common in the buying or selling of property and intangible property, such as copyrights. 

And in my understanding of error in accounting item that was not caused deliberately, accounting error can include discrepancies in dollar or might be an error in using accounting policy incorrectly. And accounting error are should not be confused with fraud, which is intentional error in an accounting item, usually to hide or change data for personal gain.

There are some common errors example, for example like an advertising expense shows up as a miscellaneous expense, the data entry clerk made a simple keying error. And also if recording a deposit as a payment in account or recording the payment for the wrong date or wrong amount is also an error. 

When fraud happen, that will be occurs when someone purposefully produces deceptive data. There have two type of fraud, first is misstatements due to fraudulent financial reporting. For this type of fraud usually management or owners are involved in the case and the fraud is stimulate by overriding internal controls. And the second misstatements is because of the embezzle of assets, for this type of fraud is usually offend by non-management employees.