The numbers are not looking good when compared to prior quarters. You are a CPA...
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Accounting
The numbers are not looking good when compared to prior quarters. You are a CPA in the company's accounting department working closely with the CFO. The CFO pressures you to create an adjusting entry so that the quarter looks like past quarters. The total amount of the adjusting entry does not appear to be material. What action should you take? Refuse to make the adjustment and tell the CFO they are a criminal. Refuse to make the adjustment until you are confident it complies with GAAP. Since the adjustment is not material, make the adjustment. Since the adjustment is not material, let the CFO make the adjustment. Question 4 A CPA in a company finance department is asked by his manager to lie for him. The manager asked him to say he (the manager) prepared a particular report but the CPA lost it. The CPA is new and wants to please the manager. The CPA should: Ignore the issue and avoid commenting on the situation. Lie for the manager since this issue is not addressed in the AICPA Code. Refuse to lie because this would be a violation of the Code's "Integrity and Objectivity Rule (ET \$2.100.001) with the member misrepresenting facts. Leave the organization
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