Goldschmidt, a member, is a senior accountant with Diamondback Industries, a private company. Vargas is the controller of Diamondback and is Goldschmidts direct supervisor. While performing the year-end close for the period ended December 31, 20X5, Vargas asked Goldschmidt to record several transactions with which Goldschmidt had some issues. All of the entries requested would materially overstate the net income of the company for the year in question.

What should Goldschmidt do to ensure that the situation does not constitute a subordination of judgment?

• Goldschmidt should immediately resign his position and look for another job.
• Goldschmidt should immediately inform Diamondback Industries' external accountant about the situation.
• Goldschmidt should immediately inform any and all third parties that might rely on the financial statements.
• Goldschmidt should first discuss his concerns with the supervisor and appropriate higher level(s) of management.

A) I only

B) II and III

C) III only

D) IV only