Which of the following might alert an auditor to the possibility of fraud in a division?

Which of the following might alert an auditor to the possibility of fraud in a division?
A. The division is not scheduled for an external audit this year.
II. Sales have increased by 10 percent.
III. A significant portion of management’s compensation is directly tied to reported net income of the division.
B. I only
C. III only
D. I and II only
E. I, II, and III

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