Define "Fraud" in the context of the ACFE.

In the context of the Association of Certified Fraud Examiners (ACFE), "fraud" is defined as an intentional deception for personal gain. This definition emphasizes the deliberate nature of fraudulent activities, highlighting that fraud is not merely a mistake or error, but rather involves a conscious choice to deceive others for profit or advantage. This can manifest in various forms, including financial statement fraud, asset misappropriation, and corruption.

The concept of intentionality is crucial in distinguishing fraud from other unethical practices and errors. For instance, while an error in financial reporting may lead to misstatements, it lacks the element of intention that characterizes fraud. Similarly, although a misrepresentation in a business deal could fall under fraudulent actions, it must be coupled with the intent to deceive for personal gain to be classified strictly as fraud. Unethical business practices, while potentially involving deceitful behavior, do not always meet the legal criteria for fraud unless there is intent to deceive involved. Thus, the clear focus on intentionality and personal gain makes the provided definition accurate and comprehensive within the realm of fraud examination.