Josie, an accounting supervisor in monk & sons realty, instructs maria, her employee, to make certain accounting entries in

Question

2 months ago

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Josie, an accounting supervisor in monk & sons realty, instructs maria, her employee, to make certain accounting entries in

the company's books that will increase revenue. maria researches the matter, confirming her concern that these entries would overstate revenue, and informs josie that recognizing revenue in this manner would be premature and not consistent with generally accepted accounting principles (gaap) but josie disagrees and insists that maria record the entries. the amount of revenue is material to monk's financial statements. according to the aicpa rules, what should maria do first?

Business

2 answers:

Free_Kalibri [3.7K] · Answer 1 · 2026-02-17T10:26:05+03:00

According to AICPA guidelines, Maria should raise her concerns with Josie's supervisor.

The AICPA Code of Professional Conduct requires members to uphold integrity, responsibility, objectivity, and independence. These principles are foundational to fostering public trust. Regardless of Josie's instructions, Maria must follow Article 55 - Chapter IV, mandating objectivity and avoidance of conflicts of interest. Public practitioners must maintain both actual and apparent independence when performing audit and assurance services.

arsen [3.4K] · Answer 2 · 2026-02-17T10:29:20+03:00

The appropriate action is for Maria to address her issues with Josie's supervisor.

Initially, Maria must seek clarification from Josie's superior to ensure the financial reports comply with AICPA standards.

Further Details:

AICPA Professional Ethics:

The AICPA requires its members to uphold honesty, impartiality, independence, and accountability.
Certified Public Accountants in the United States and over 418,000 professionals worldwide, across around 143 countries, must adhere to the AICPA's ethical framework.
Inflating revenue figures breaches the AICPA's ethical guidelines and must be avoided.