Wanda is faced with an ethical dilemma. She knows her supervisor, the CFO, wants to accelerate the recoding of revenue to an earlier period to "make the numbers," but Wanda is convinced this would violate GAAP. If Wanda reasons at stage 4 of Kohlberg's model she is most likely to:
A) Make a decision based on what is in her own best interests
B) Consider the interests of the stakeholders but decide based on what is in her best interests
C) Refuse to record the transaction as desired by the CFO
D) Inform the board of directors of the difference of opinion with the CFO

Question

Quizplus · Accepted Answer

At stage 4, individuals uphold the law and follow rules to maintain social order. Therefore, Wanda is likely to refuse to record the transaction as desired by the CFO because it would violate GAAP, which is a set of rules and regulations that must be followed to maintain social order in the accounting profession.

Wanda Is Faced with an Ethical Dilemma