Which of the following is a factor that relates to incentives to misappropriate assets?
A)Significant accounting estimates involving subjective judgments
B)Significant personal financial obligations
C)Management's practice of making overly aggressive forecasts
D)High turnover of accounting, internal audit and information technology staff

Question

Quizplus · Accepted Answer

Significant personal financial obligations can provide an incentive for individuals to misappropriate assets as they may feel justified to steal to alleviate their financial struggles. The other options are risk factors that may increase the likelihood of misappropriation but are not directly related to incentives.

Which of the Following Is a Factor That Relates to Incentives