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Can anyone give explanation for this.
Answers (6)
Divya Talluri
Incentives based on sales may make employees to create fictious or book sales to get incentives....so thats a fraud risk factor. They they must have strong internal controls and internal check at every stage of sale transaction
Thanks but what about frequent change s in supplies not being risk of fraud when compared to mgt incentive system on sales?
Divya Talluri
Change of sales may be real right...so that why it is not always treated as fraud risk factor as it depends on n number of environmental factors....this could be fraud risk factor only when there is not genuine reason for uncertain or sudden changes.
Sorry but I can't understand your explanation.actually my doubt is why frequent change in supplies is not fraud risk factor?
My last explanation is for that only....its not a fraud risk factor untill reason for such change is not genuine....mean you can't simply say there is fraud as and when there is suddden r frequent changes in sales you need to enquire the reasons because there are chances of fraud but there may r may not really fraud happened. So it is not always a fraud risk factor.
Divya Talluri
My last explanation is for that only....its not a fraud risk factor untill reason for such change is not genuine....mean you can't simply say there is fraud as and when there is suddden r frequent changes in sales you need to enquire the reasons because there are chances of fraud but there may r may not really fraud happened. So it is not always a fraud risk factor.
Now I understood.Thanks for your explanation.