Misstatements can be of two types. The first$--$an error$--$is deemed to be unintentional. The second type$--$fraud$--$is deemed to be an intentional act.

CONCEPT REVIEW:

Auditors have the responsibility to plan and perform an audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. Misstatements are classified as either unintentional $($error$)$ or intentional $($fraud$).$