Final answer:
Regular comparison of actual results with budgets is not generally associated with management fraud, rather it's a part of standard financial management. Other factors such as a preoccupation with financial performance, domineering management, and generous reward systems can be red flags.
Step-by-step explanation:
The question is addressing the concept of internal audit and management fraud, which involves the recognition of certain warning signs or 'red flags.' These factors can help internal auditors identify potential risks or actual instances of fraudulent behavior by management within an organization.
Among the options provided, B. Regular comparison of actual results with budgets has generally not been associated with management fraud. This practice is a standard part of financial management and internal controls.
It is a mechanism for ensuring that financial performance aligns with company objectives and can serve as a tool for uncovering discrepancies or unusual activities rather than being a red flag for fraud.
On the other hand, options such as A. A management preoccupation with increased financial performance, C. A domineering management, and D.
Generous performance-based reward systems can indeed be associated with management fraud as they might push individuals to engage in unethical practices to meet targets or to gain financial rewards.