Question 3 of 40

2.5 Points

Janice is a staff accountant in the accounting firm of Obama and Biden. She is assigned to the audit of HealthCare Associates. On the very first day Janice noticed that the accounting manager of the client took money out of the petty cash fund and put it in his pocket. The best action for Janice to take is:

• A. Ignore the situation because Janice doesn't know why the manager pocketed the money

• B. Inform her immediate supervisor of what she observed

• C. Tell another staff accountant who is a friend and ask for her advice

• D. Tell the superior of the accounting manager what she has observed

Question 4 of 40

2.5 Points

Under the IMA's standards of ethical practice, an accounting professional can consider informing authorities or individuals not employed by the organization when an ethical dilemma occurs about an accounting or financial reporting matter that remains unresolved if he/she:

• A. Believes there is a clear violation of the law

• B. Contacts his/her immediate superior who says to forget about the matter

• C. Informs the external auditors who tell him/her to inform the appropriate authorities

• D. Believes there has been an ethical violation