Sheraton & Co places orders by telephone. When a call is received, the person receiving the order checks that the customer’s credit status supports the order and that the customer’s current balance is below the maximum level and then immediately inputs the order into the system.

Sheraton & Co places orders by telephone. When a call is received, the person receiving the order checks that the customer’s credit status supports the order and that the customer’s current balance is below the maximum level and then immediately inputs the order into the system.

The risk of management fraud could increase in this case for Sheraton & Co in the presence of ___________________.
A . improved internal control system of Sheraton & Co
B . frequent changes in supplies by Sheraton & Co
C . substantial increases in sales of Sheraton & Co
D . Sheraton and Co’s management incentive system based on sales done in a quarter

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Answer: D