Scenario: Carrie is the external auditor of Texas Two Steps, a privately owned dance company...
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Accounting
Scenario: Carrie is the external auditor of Texas Two Steps, a privately owned dance company in Texas. Carrie believes the owner of the company is skimming cash off the top. She approaches the owner who explains that the money will be replaced in the following month after he refinances his house. Carrie accepts the owners explanation but reclassifies the expenditure as a receivable of the company from the owner. Based on the Kohlberg model, Carries reasoning best reflects
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