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John is a staff accountant in a public accounting firm. He is assigned to the audit of a new client. On the very first day,
John is a staff accountant in a public accounting firm. He is assigned to the audit of a new client. On the very first day, the client's manager told John that their company was
having financial difficulty. The manager told John that some of the allowances for uncollectables were reevaluated much lower than in previous years. The manager explained
that the numbers needed a little "help" so that investors are not disappointed with the results. The manager insists that this is a onetime request. The best action for John to
take is:
Tell the CEO about the conversation with the manager
Tell another staff accountant who is a friend and ask for his advice
Inform his immediate supervisor about the conversation with the manager
Ignore the situation because John doesn't know if there is any wrongdoing
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