Management should define and use incentives as a means to prevent improper conduct, especially conduct that may occur beyond the "reach" of established controls. A full analysis should include consideration of both direct and indirect compensation such as fringe benefits and discretionary incentives that feed back into the direct and indirect compensation (e.g., providing large discretionary budgets that may have an impact on the employee's compensation).  For example, a sales representative may have discretionary funds to spend, and while not part of the direct compensation, the allocation of these funds has a correlation to his or her compensation.