Fraud
Accounting glossary · Understand, connect, apply
Fraud is intentional deception used to obtain an improper advantage or cause loss. It can involve financial reporting, misappropriation of assets or other misconduct.
Example
A manager knowingly records fictitious sales to inflate reported profit.
Remember the difference
Fraud is intentional; an accounting error may be accidental. Fraud is not limited to employees stealing cash.
Updated 3 November 2026. Examples are simplified for learning. Where a term depends on US law, IFRS, US GAAP or a historical rule, check the context explained above and the requirements relevant to your course.
Study references: OpenStax financial accounting and managerial accounting. For reporting requirements, consult the applicable IFRS Standards or FASB guidance. US tax terms should be checked against the relevant tax-year IRS instructions.
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