Goldschmidt, a member, is a senior accountant with Diamondback Industries, a private company. Vargas is the controller of Diamondback Industries and is Goldschmidts direct supervisor. While performing the year-end close for the period ended December 31, 20X5, Vargas has asked Goldschmidt to record several transactions with which Goldschmidt has some issues. All of the entries requested, if not correct, would materially overstate the net income of the company for the year in question. Which of the following steps should Goldschmidt undertake to ensure that the situation does not constitute a subordination of judgment?

A) Goldschmidt should immediately resign his position and look for another job.

B) Goldschmidt should immediately inform Diamondback Industries external accountant about the situation. C) Goldschmidt should immediately inform any and all third parties that might rely on the financial statements. D) None of the above.

E) Both a. and b.