ABC Ltd is a wholly owned subsidiary of Alphabet plc. ABC manufactures and sells a range of double glazed windows and doors for domestic and industrial premises within fifty miles of its factory and offices. Other subsidiaries supply the remainder of the country. Alphabet has a minimum performance target for each of its subsidiaries. If a company cannot meet this, then it is closed down and its market area is served by neighbouring companies. All of ABC’s managers, from the sales and factory supervisors up to the directors, receive an annual bonus which is based on reported profit. All of the bookkeeping is done on a micro-computer at ABC and the company employs full-time accountants to prepare all accounting statements.

Assume that there is no audit function. Identify five individuals within ABC who could have a motive to manipulate the bookkeeping records within the company or the statements which are prepared from them. In each case, suggest how the the desired distortion could be achieved.