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 can create an incentive or pressure to commit fraudulent financial reporting, as management may manipulate financial statements to appear more financially stable than they actually are to meet or exceed debt covenants or expectations.

Which of the Following Is a Factor That Relates to Incentives