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Josie, an accounting supervisor in Monk & Sons Realty, instructs Maria, her 2. 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 GAAP. 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? a. Resign her position quietly. b. Report the matter to the senior partner in the firm. c. Take out a professional liability policy. d. Discuss her concerns with Josie’s boss.
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