Ineffective oversight of financial reporting by the board of directors allows management to exercise discretion over reporting. Management has disregarded the inadequate separation of duties that allows the potential theft of cash receipts. Management is overly aggressive. For example, the company may issue aggressive earnings forecasts, or make extensive acquisitions using company stock. The company is under pressure to meet debt covenants or obtain additional financing. The individual is unable to meet personal financial obligations. There is insufficient segregation of duties that allows the individual to handle cash receipts and related accounting records. Give examples of risk factors for fraudulent financial reporting for each of the three fraud conditions: incentives/pressures, opportunities, and attitudes/rationalization. Select the examples of risk factors for fraudulent financial reporting for each of the three fraud conditions. Fraud conditions Examples of risk factors Incentives/pressures Opportunities Attitudes/rationalization Ineffective oversight of financial reporting by the board of directors allows management to exercise discretion over reporting. Management has disregarded the inadequate separation of duties that allows the potential theft of cash receipts. Management is overly aggressive. For example, the company may issue aggressive earnings forecasts, or make extensive acquisitions using company stock. The company is under pressure to meet debt covenants or obtain additional financing. The individual is unable to meet personal financial obligations. There is insufficient segregation of duties that allows the individual to handle cash receipts and related accounting records. Give examples of risk factors for fraudulent financial reporting for each of the three fraud conditions: incentives/pressures, opportunities, and attitudes/rationalization. Select the examples of risk factors for fraudulent financial reporting for each of the three fraud conditions. Fraud conditions Examples of risk factors Incentives/pressures Opportunities Attitudes/rationalization