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A CPA was employed by a small manufacturing company. The company was expected to meet certain financial performance expectations for its loan obligations. Management hinted
A CPA was employed by a small manufacturing company. The company was expected to meet certain financial performance expectations for its loan obligations. Management hinted that the CPA should do "something" about it, but he didn't do anything about it. He was not sure if his managers changed the numbers, and he didn't want to know. What should the CPA do in this situation? Consult the organization's policies and procedures on how such matters should be addressed internally Ignore the situation since he did not do anything wrong. Leave the company. None of the above. Question 6 A CPA in a company's accounting department properly recorded accrued liabilities by debiting the expense and crediting the accrued liability. The CFO wanted her to reverse these entries to wipe out the accrued liabilities. She didn't do it, but she knew another accounts payable clerk made the reversing entries for the CFO. What is the CPA's obligation? Ignore the reversal. Someone else's problem. Consult with internal \& external auditors, determine obligations to report to 3 rd parties. Resign and not deal with the matter Assume the CFO is a criminal and perform a citizen's arrest
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