Management of Premium Discovery Company Is Compensated Through Large Salaries

question 112

Multiple Choice

Management of Premium Discovery Company is compensated through large salaries, stock options and bonuses tied to the company's working capital growth. The CEO is constantly holding meetings to ensure that management is on target for increased operating income each month. Based upon the above information only, what type of probable motivation is there to commit fraud at the Premium Discovery Company?

• A) Incentive.
• B) Opportunity.
• C) Rationalization.
• D) Expectation.

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Definitions:

Atlas

The first cervical vertebra of the spine, supporting the globe of the head.

Sacrum

A large, triangular bone at the base of the spine that forms by the fusion of vertebrae, uniting with the pelvis.

Joint Cavity

The space between the articulating surfaces of bones in a synovial joint, filled with synovial fluid that lubricates the joint.

Fibrous Joint

Bones connected by fibrous tissue with no joint cavity; includes sutures, syndesmoses, and gomphoses.