2022 JOSIE, AN ACCOUNTING SUPERVISOR IN MONK & SONS REALTY, INSTRUCTS MARIA ANSWER.

1.Sarah, the controller of a large beverage supplier, supervises two employees. Her boss, Vladimir, instructs her to increase the company's inventory balance for an amount that is material to the financial statements by crediting several small "miscellaneous" expense accounts. She does not understand why he wants her to make these entries but immediately directs one of her staff to make them because she has been instructed to do so. Which of the following statements best describes Sarah's actions? 1. Sarah failed to evaluate a potential ethical issue. 2. SarahfailedtoreferthemattertotheAICPAethicshotline. 3. Sarah failed to ensure that her staff was competent to make the entries. 4. Sarah failed to consider the rules of other regulators. Step-by-Step explanation The correct answer is choice