Nancy is the controller of a small consulting firm. Her boss, Juan, instructs her to decrease the company's accounts payable for an amount that is material to the financial statements. She is provided no backup documentation or explanation and, after discussing the matter with Juan, refuses to make the adjustment on the grounds that it would make the financial statements misleading under generally accepted accounting principles $($GAAP$).$ Which statement best describes the most likely reason for Nancy's action?

$1)$She resents being told what to do

$2)$She recognizes and ethical issue

$3)$She does not feel competent to make the entry

$4)$She faild to consider other accounting rules