DOIONLINE

DOIONLINE NO - IJMAS-IRAJ-DOIONLINE-6135

Publish In
International Journal of Management and Applied Science (IJMAS)-IJMAS
Journal Home
Volume Issue
Issue
Volume-2,Issue-10, Special Issue-1  ( Oct, 2016 )
Paper Title
Is this an Error or a Fraud? A Case of Revenue Recognition- Group on
Author Name
Burcu Adiloglu
Affilition
Istanbul University School of Business Accounting Department Turkey
Pages
77-82
Abstract
Misstatements in the financial statements can arise from either fraud or error. The distinguishing factor between fraud and error is whether the underlying action that results in the misstatement of the financial statements is intentional or unintentional. True and fair view in auditing means that the financial statements are free from material misstatements and faithfully represent the financial performance and position of the entity. Preparation of true and fair financial statements has been expressly recognized as one of the responsibilities of the directors of companies in the corporate law of several countries. Auditors must therefore consider whether directors have fulfilled their responsibility for the preparation of true and fair financial statements when providing an audit opinion. In this study firstly the importance of true and fair presentation of financial statements and responsibilities of auditors in fraud and error cases are briefly explained and then one of the huge restatement of financial statement related to revenue recognition is discussed. Keywords- Fraud, Error, Revenue Recognition, Groupon, Case
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