John is a management accountant at DAP Inc.John has reason to believe that his immediate supervisor (the controller),the chief financial officer and the company president are engaged in accounting fraud that involves overstating assets and understating liabilities.The company does not have a code of ethics or a set of policies for ethical problems.According to the guidelines offered by the IMA,what should John do?

Question

Quizplus · Accepted Answer

The best choice for John is to report the suspected wrongdoings to the audit committee or the board of directors. John should not discuss the suspected wrongdoings with his immediate supervisor or the company president, as they are potentially involved in the fraud. Reporting the issue to the local police may not be effective or appropriate at this stage. Additionally, as the company does not have a code of ethics or set of policies for ethical problems, reporting to the audit committee or board of directors is the best course of action.

John Is a Management Accountant at DAP Inc