A company selling electronic devices has a satisfaction guaranteed policy allowing customers to return devices...

A monthly bonus based on gross sales creates a significant fraud incentive because managers may record or encourage temporary sales near month-end to exceed the quota and earn the bonus, knowing that customers can subsequently return the products within 30 days. The timing mismatch between immediate bonus calculation and later product returns could enable manipulation of reported sales performance. This represents the pressure or incentive component commonly associated with fraud risk. Option A provides no financial incentive to inflate sales. Higher sales and returns during holiday periods may represent normal seasonal activity. A yearly bonus based on net sales is less concerning because net sales generally reflect returns and adjustments, reducing the benefit of temporarily inflating gross sales. Therefore, the monthly sales-based incentive in option B creates the strongest fraud-risk condition.