Errors versus Fraud 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. 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). Roll your cursor over each action and, based on the hint given, choose whether it is an error or fraud. Error Fraud Mistake in gathering data Fraudulent financial reporting Misappropriation of assets Unreasonable estimates from misinterpretation of facts