CEVAP:

There are two types of frauds: misappropriation of assets and fraudulent financial reporting.

1. Misappropriation of assets: Frauds which are committed by employees to steal money or other assets. In this type of fraud usually employee tries to cover the fraud up with an inaccurate entry or tries to steal the asset before recording process.
2. Fraudulent financial reporting: Frauds which are committed by managers to make false and misleading entries in the books. In this case, the purpose of fraud may be making performance or financial status of the business appear to be better than they actually are; or deceiving investors, creditors, or any other parties into loaning money that they need; or evading tax.