Question

The risk of management fraud increases in the presence of

Answer 1

to assess the risk of fraud on every audit and encourages auditors to ... 53, clarifies but does not increase auditors' re- ... INTERNAL CONTROLS AND MANAGEMENT FRAUD 103.

Answer 2

Answer:

Management incentive system based on sales done in a quarter is the appropriate option which will answer the given question appropriately

Explanation:

• The concept states that there are three components, which lead to fraudulent behavior. (1) the estimated non-discriminatory financial need (motivation/pressure), (2) the perceived opportunity to commit fraud, and (3) the adjustment to commit fraud.
• Fraud can lead to immediate and long-term environmental damage through pollution and damage to ecosystems and biodiversity. It can also incur significant cleaning costs.