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.According to the guidelines offered by the IMA,what should John do?

Question

Quizplus · Accepted Answer

According to the IMA guidelines, John should report the suspected wrongdoings to the audit committee or the board of directors as they are responsible for overseeing the company's financial reporting and ensuring its accuracy. Reporting to his immediate supervisor or discussing the issue with the company president could potentially put John at risk of retaliation or further cover-up. Reporting to the police is not appropriate in this case as it is not a criminal matter, but rather a violation of accounting standards and regulations.

John Is a Management Accountant at DAP Inc