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JOSIE, AN ACCOUNTING SUPERVISOR IN MONK & SONS REALTY, INSTRUCTS MARIA EXAM-with 100% verified answers-2022

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JOSIE, AN ACCOUNTING SUPERVISOR IN MONK & SONS REALTY, INSTRUCTS MARIA EXAM-with 100% verified answers-2022 1. Sarah, the controller of a large beverage supplier, supervises two employees. Her bos... s, Vladimir, instructs her to increase the company's inventory balance for an amount that is material to the financial statements by crediting several small "miscellaneous" expense accounts. She does not understand why he wants her to make these entries but immediately directs one of her staff to make them because she has been instructed to do so. Which of the following statements best describes Sarah's actions? 2. Sarah failed to evaluate a potential ethical issue. 3. SarahfailedtoreferthemattertotheAICPAethicshotline. 4. Sarah failed to ensure that her staff was competent to make the entries. 5. Sarahfailedtoconsidertherulesofotherregulators. 6. Josie, an accounting supervisor in Monk & Sons Realty, instructs Maria, her employee, to make certain accounting entries in the company's books that will increase revenue. Maria researches the matter, confirming her concern that these entries would overstate revenue, and informs Josie that recognizing revenue in this manner would be premature and not consistent with generally accepted accounting principles (GAAP) but Josie disagrees and insists that Maria record the entries. The amount of revenue is material to Monk's financial statements. According to the AICPA rules, what should Maria do first? 7. Resign her position quietly. 8. Report the matter to the senior partner in the firm. 9. Take out a professional liability policy. 10. Discuss her concerns with Josie's boss. 1. The AICPA Code of Professional Conduct includes the following sections: 2. Preface, rules, and interpretations applicable to members in tax practice and members in business. CONTINUED........ [Show More]

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