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?

Question

Quizplus · Accepted Answer

The large salaries, stock options, and bonuses tied to working capital growth create a pressure for management to meet targets for increased operating income each month. This pressure could motivate someone to commit fraudulent actions in order to meet those targets and receive their compensation.

Management of Premium Discovery Company Is Compensated Through Large Salaries,stock