The following is a list of incentives and pressures, opportunities, and rationalizations to commit fraud:

1.Poor tone at the top

2.Falling profits

3.No inventory count, so losses are not known

4.Petty cash box often left unattended

5.Management bonuses tied to profit

6.The finance vice-president having investment authority without any review

7.Planning to list on stock exchange

8.Business losses

9.View that internal controls are not important

10.Everyone is doing it

Which of the following correctly categorizes the items as incentives, opportunities, and rationalizations?

Incentive: 2, 5, 7, 8; Opportunity: 3, 4, 6; Rationalization: 1, 9, 10

Incentive: 2, 4, 6, 9; Opportunity: 3, 5, 8; Rationalization: 1, 7, 10

Incentive: 3, 9; Opportunity: 1, 4, 6, 10; Rationalization: 2, 5, 7, 8

Incentive: 1, 8, 10; Opportunity: 2, 7, 9; Rationalization: 3, 4, 5, 6

None of the above