Is this an Error or a Fraud? A Case of Revenue Recognition- Group on
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