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Samantha Cameron, CFA, is part of a team reviewing the finances of Redd Networks, a computer-services company known for its complex accounting. Her task is to analyze the company’s operational results, including a recent decline in profits and cash flows. She must also determine how the company is responding to strict debt covenants. Lastly, Cameron is to investigate executives’ holdings of stock and options in the firm, which are believed to be quite high. Which portion of the fraud triangle is Cameron investigating? A. Opportunity. B. Incentives. C. Policies. |