To reduce fraud incidence, management should build a positive culture and work environment by implementing programs and initiatives to increase employee morale.Which of the following is NOT an example of the above? Employees should be encouraged
A) to obtain advice internally when matters of conflict arise.
B) by linking their remuneration to the final profit figure.
C) to support the entity's values and code of conduct.
D) to contribute to their work environment.

Question

Quizplus · Accepted Answer

Linking remuneration to profit figures may actually increase the likelihood of fraudulent behavior as employees may be motivated to manipulate financial reports to meet targets and earn higher bonuses. The other options (A, C, and D) all support the idea of building a positive culture and work environment to reduce fraud incidence.

To Reduce Fraud Incidence, Management Should Build a Positive Culture