25. The most common motivation for management fraud is the existence of
A. Vices, such as a gambling habit.
B. Job dissatisfaction.
C. Financial pressures on the organization.
D. The challenge of committing the perfect crime.
Answer (C) is correct.
REQUIRED: The most common motivation for management fraud.
DISCUSSION: Management fraud benefits organizations rather than is individuals, so the existence of financial pressures the most common motivation. Management perpetrators attempt to make their financial statements appear more attractive because of the financial pressures of restrictive loan covenants, a poor cash position, loss of significant customers, etc.
Answer (A) is incorrect. Vices are an example of motivators of fraud perpetrated for the benefit of individuals and to the organization's detriment.
Answer (B) is incorrect. Job dissatisfaction is an example of motivators of fraud perpetrated for the benefit of individuals and to the organization's detriment.
Answer (D) is incorrect. The challenge of committing the perfect crime is an example of motivators of fraud perpetrated for the benefit of individuals and to the organization’s detriment.