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Josie is an accounting supervisor at Monk & Sons Realty. She instructs her subordinate, Maria, to make certain accounting entries in the company's books that will increase revenue by a material amount. Based on her research, Maria believes that recognizing revenue in this way would be premature and not consistent with GAAP. What should Maria do next, according to the AICPA Code of Professional Conduct? O Resign her position quietly. O Discuss her findings with Josie. O Discuss her concerns with Josie's boss. O Report the matter to the board of directors.
Josie is an accounting supervisor at Monk & Sons Realty. She instructs her subordinate, Maria, to make certain accounting entries in the company's books that will increase revenue by a material amount. Based on her research, Maria believes that recognizing revenue in this way would be premature and not consistent with GAAP. What should Maria do next, according to the AICPA Code of Professional Conduct? O Resign her position quietly. O Discuss her findings with Josie. O Discuss her concerns with Josie's boss. O Report the matter to the board of directors.
Final answer:Maria should initially discuss her concerns with her supervisor, Josie. If Josie does not respond constructively, Maria should then talk toJosie's boss. If after that, her worries still aren't resolved, Maria should consider taking the issue up with themanagementor the board.Explanation:According to theAICPACode of Professional Conduct, Maria needs to discuss her concerns with Josie first. She should explain to Josie why she believes that theaccountingentries would be premature and inconsistent withGAAP. If Josie doesn't respond appropriately, Maria should then discuss her concerns with Josie's supervisor. The AICPA Code encourages accountants and auditors to eschew shortcutting the chain of command. Only if her concerns remain unaddressed should Maria consider reporting the matter to upper levels of management or the board of directors. It's important for Maria not to resign quietly but instead seek to remedy the situation while acting in good faith and in accordance with professional standards.Learn more aboutAccountinghere:brainly.com/question/36840503#SPJ11...