Sarah, the controller of a large beverage supplier, supervises two employees. Her boss, Vladimir, instructs her to increase the

Question

3 years ago

15

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?

Business

1 answer:

valentina_108 [34] · Answer 1 · 2022-06-12T15:00:16+03:00

Answer:

Sarah failed to evaluate a potential ethical issue

Explanation:

According to the given scenario, Ethical concerns occur as workers face pressure from their employers to inflate profits or expenditures that include manipulating financial statements. Workers should be morally responsible and not participate in any dishonest behavior that modify the financial statements.

So, the correct answer is Sarah failed to evaluate a potential ethical issue .