Which of the following is a factor that relates to incentives or pressures to commit fraudulent financial reporting?
A)Significant accounting estimates involving subjective judgments
B)Excessive pressure for management to meet debt repayment requirements
C)Management's practice of making overly aggressive forecasts
D)High turnover of accounting, internal audit, and information technology staff

Question

Quizplus · Accepted Answer

Excessive pressure for management to meet debt repayment requirements is an incentive or pressure that can lead to fraudulent financial reporting as management may manipulate financial results to appear more favorable.

Which of the Following Is a Factor That Relates to Incentives