Ikeoz is a UK Time Management System app company that saw its market share eroded in the UK in early 2015 because of foreign competition. The management, in order to cash in on a compensation scheme that would net them 320 million pounds if Ikeoz's share rose to more than 129 per share, developed a scheme to artificially increase revenue. Firstly, they recorded sales of goods and services that did not occur. Secondly, they recognised revenue at the wrong time and artificially inflated and altered invoices of legitimate customers. To settle charges that included fraud, financial statement fraud and abuse of position, the Financial Conduct Authority required that Ikeoz pay a 620 million-pound civil penalty - at that time, the largest ever by a company for financial reporting violations. The Financial Conduct Authority also required that Ikeoz restate its financial statements for the years 2011 to 2014.

Question 1 - In the case of Ikeozs fraudulent scheme, what are the likely costs linked with financial statement fraud for both senior management and Ikeoz as a company?

Question 2- Discuss possible factors that could motivate Ikeozs management to be involved in financial statement fraud.

Question 3 - Identify and discuss at least three ways financial statement fraud can be committed.