In what way the employees on commission can fraudulently increase their pay?

Question

Options

• Afalsify the amount of sales made
• Bincrease the rate of commission
• CBoth A and B
• DNeither A nor B

• A
  8% (4)
• B
  4% (2)
• C
  75% (36)
• D
  13% (6)

Explanation

Option C is correct because commission-based employees have two distinct opportunities for fraud: they can falsify sales records (inflating the quantity or value of transactions they claim to have made) and they can manipulate the commission rate itself if they have access to payroll or HR systems - both methods directly inflate their calculated pay. Option A alone is wrong because it only captures one avenue of fraud, and Option B alone is wrong for the same reason - each represents a real but incomplete answer. Option D is entirely wrong since both methods are legitimate, documented fraud vectors in commission compensation schemes.

Memory tip: Think "two levers" - the amount (what you sell) and the rate (what you earn per sale). A fraudster can pull either lever, so the answer always includes both.

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