[Anonymous]

Tal works in the internal audit department of DEF Co. His boss, the CFO, is strongly urging Tal to recognize revenue prematurely so that DEF can make its quarterly numbers. Which of the following is true?

A. Tal has a responsibility to advance the legitimate goals of DEF.

B. Tal has a responsibility to accurately prepare and report information.

C. Given this conflict, Tal should consider seeking advice from an independent professional advisor.

D. All of the above.

Answer: D. Because A, B, and C are all true, this is the best answer.

How the heck is A true? Recognizing revenue prematurely so that the company can make its quarterly numbers is NOT a legitimate goal. It is more of a shady goal if you ask me.

Edit: All right, it seems that A is just making a general statement, not necessarily referring to the scenario in the question. I guess it just comes back to me not RTMFQ.

[calicpa]

That's not what A says. A says “Tal has a responsibility to advance the legitimate goals of DEF” which is a true statement.

BEC - 84, 4/6/13
AUD - 77, 5/28/13
REG - 83, 4/12/14
FAR - 83, 10/3/13

Ethics - 90% 4/24/13

150 unit education requirement met!
Work experience met!

[kmaahs]

A is a general statement.

In general, Tal, as an internal auditor, should advance the legitimate goals of DEF.

It is not referring to the scenario in the question, specifically.

C.P.A.

[Ntw6817]

I can see how A can be true. The answer isn't saying that recognizing revenue early is a legitimate goal but that Tal's responsibility is to the legitimate goal.

[Author]

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