Evaluation of accounting errors and frauds in terms of intent

Increasing financial relations with the developing technology lead businesses to avoid tax in order to earn more income. The methods that a business can use to evade tax are the accounting errors and frauds that will be made in the financial statements. The issue of how to distinguish accounting errors and frauds in the doctrine is a controversial area. Because the actions taken are so similar to each other that the people who will do the control may hesitate to distinguish between error or fraud. Due to an act that is misinterpreted, people can be prosecuted and punished as a result. This situation may undermine the Rule of Law principle. In this study, the reasons, types and differences of accounting errors and frauds are explained. Then, by explaining the titles of error and fraud in the Turkish legal system, the issue of caste, which is the biggest difference that helps to distinguish between error and fraud in terms of criminal law, is explained. The most basic element that separates error and fraud from each other is caste. If the action is done knowingly and willfully, it was done intentionally. While fraud is done intentionally; Error comes from ignorance and inexperience. However, it is unfortunately very difficult to determine whether the transaction was done intentionally or not; In practice, there are difficulties in determining the process. As a result, in this study, the issues that should be considered in terms of detecting accounting errors and frauds have been tried to be explained.