You are undertaking the audit of Precious Metals Ltd (PML) for the year ended 30 June 2018. During the audit planning process, the following information is obtained:

- PML managements remuneration is heavily weighted towards incentive-based payments that rely on optimistic sales targets.

- Recently, the human resources department of PML has been short staffed and has not been able to provide training to new staff responsible for administrative and financial processing functions. Generally, new staff members have experience within the industry.

- One of the outputs produced by PML is a titanium bolt, which is small but very valuable. There is a high demand of these bolts in the construction industry.

- Receivables are agreed to the sub-ledger, but there is no aging review completed, and an increasing percentage of total receivables are falling into the 90 days+ category.

Required

Identify and explain two key fraud risk factors within PML.