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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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