cyber21

Doji Wrote:
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>
> So that could be the pressure of an external
> auditor...

I seriously haven't heard any case that the external auditor can "pressure" the management to fudge the number and churn out better numbers - it should be the other way around. Saying that external auditors can pressure the management to conduct fraud is laughable. And you answered it your self with #9 (a strained relationship between management and the current or previous auditor) as a rationalization - not an incentive.

Weak internal control is obviously an opportunity, not an incentive.

Weak business environment is an incentive/pressure to mark-up sales and fudge the company's earnings. Weak business environment can be categorized as #1 (the nature of the firm's industry or operations)