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Bala V. Balachandran, Ram T. S. Ramakrishnan, Internal Control and External Auditing for Incentive Compensation Schedules, Journal of Accounting Research, Vol. 18, Studies on Economic Consequences of Financial and Managerial Accounting: Effects on Corporate Incentives and Decisions (1980), pp. 140-171
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Balachandran et al. (1980) studied this question.
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