Which of the following is a factor that relates to incentives/pressures to misappropriate assets?
A) weak internal controls
B) significant personal financial obligations
C) management's practice of making overly aggressive forecasts
D) anger and fear

Question

Quizplus · Accepted Answer

Significant personal financial obligations create pressure on an individual to misappropriate assets for personal financial gain.

Answer: C 
 Management's practice of making overly aggressive forecasts can create incentives for misappropriation of assets in order to meet those forecasts.

Answer: A and D are incorrect 
 While weak internal controls can make it easier to misappropriate assets, it is not a factor that directly relates to incentives/pressures to do so. Anger and fear may lead to unethical behavior, but do not directly create incentives/pressures to misappropriate assets.

Which of the Following Is a Factor That Relates to Incentives/pressures