please read the case study and answer questions #3. thanks.

D A Major Case 3 Kiley Nolan's Ethical Dilemma (a GW Case) South City Electronics is involved in printed circuit board assembly (PCBA), dealing with the assembly of complex electronic system processes. The equipment is sold to a variety of customers throughout the United States and abroad. The electronics company, based in the city of South San Francisco is publicly owned. Josh Goldberg is the chief executive officer of the company. David Levin is the chief financial officer. It's March 30, 2019, and Kiley Nolan, controller for South City Electronics, has just gotten off the phone with her supervisor, South City's CFO David Levin, who reiterated the points he made in a face-to-face meeting with her earlier that day-that the company would be in default on a $10 million loan if its cash flow and earnings for the quarter ended March 31, 2019. did not meet set goals in the loan agreement At that date, the company's cash flow was $920,000 and the earnings were $460,000. This is $380,000 and $240,000. respectively, below prescribed levels. Gilmore knew her boss wanted her to agree to immediate revenue treatment for the transaction described below. The Transaction South City transferred title to equipment sold to Victor Systems on March 29, 2019, the date of delivery on a $1.6 million sale. The arrangement allowed for the transfer of title upon delivery to Victor's site, as had occurred. However, customer-specific acceptance provisions permit the customer to return the equipment unless the equipment satisfies certain performance tests. South City cannot demonstrate that at the time of delivery, the equipment already met all the criteria and specifications in the customer-specific acceptance provisions. The arrangement also called for the vendor to perform the installation. South City also provides technical support for the installation and use of the equipment going forward. Kiley is agonizing about what she should do. She believes it would be wrong to record the transaction as revenue in the first quarter of 2019 under GAAP and the recently adopted FASB revenue recognition standard. Revenue from Contracts with Customers. However, she is under a great deal of pressure to do so. Levin, her boss, took the position that the conditions under which the customer intends to operate the equipment were replicated in pre shipment testing. Kiley knew, however, that the performance of the equipment, once installed and operated at the customer's facility, may reasonably be different from that tested prior to shipment. 3. Nolan may use several powerful levers in this case, including bringing her concerns to others higher in the organization or outsiders. What would be her most convincing argument if she discussed the $1.6 million revenue with the: CEO Audit committee of the Board of Directors External auditors Securities and Exchange Commission