Categorize the situation as primarily indicating 1 - an incentive to commit fraud 2 - an opportunity to commit fraud 3- a rationalization for committing fraud state the reasoning behind the category you choose Scenario: A group of top-level management was compensated (mostly in form of stock-options) well in excess of what would be considered normal for their positions in this industry

Auditing: A Risk Based-Approach (MindTap Course List)
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Chapter2: The Auditor’s Responsibilities Regarding Fraud And Mechanisms To Address Fraud: Regulation And Corporate Governance
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Categorize the situation as primarily indicating

1 - an incentive to commit fraud

2 - an opportunity to commit fraud

3- a rationalization for committing fraud

state the reasoning behind the category you choose

Scenario:

A group of top-level management was compensated (mostly in form of stock-options) well in excess of what would be considered normal for their positions in this industry

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