Late one Thursday afternoon, Jasmine Matthews, a veteran audit manager with a regional CPA firm, was reviewing documents for a long$-$time client of the firm, DMT Shipping. The year$-$end audit was scheduled to begin Monday.

For three months, the economy had been in a down cycle and the transportation industry was particularly hard hit. As a result, Jasmine expected DMT$$s financial results would not be pleasant news to shareholders. However, what Jane saw in the preliminary statements made her sigh aloud. Results were much worse than she feared.

$$Lou $($the company president$)$ already is in the doghouse with shareholders,$$ Jasmine thought to herself. $$When they see these numbers, they$$ll hang him out to dry.$$

$$I wonder if he$$s considered some strategic accounting changes,$$ she thought, after reflecting on the situation. $$The bad news could be softened quite a bit by changing inventory methods from LIFO to FIFO or reconsidering some of the estimates used in other areas.$$

Required:

What position, department, or outside parties would be affected by following up on Jasmine$$s thoughts?

If you were Jasmine Matthews, what would you do$?$

$($Optional$)$ Are there any citations in the FASB Codifications that could support your position?