Question

Sophie, the CFO of Slolum Ski Supplies, received a watch from one of her company's largest vendors, Colorado Ski Shoppe. She received the gift with a card congratulating her on Slolum's recent merger with another company. In determining whether accepting the gift would create a significant threat to her compliance with the AICPA Code, which factor should Sophie consider?
a. Whether she disclosed receipt of the gift to the board of directors.

b. Whether she truly earned the gift.

c. Whether the gift was reasonable in the circumstances.

d. Whether the gift cost more than $100.

Answer 1

Answer:

c. Whether the gift was reasonable in the circumstances.

Explanation:AICPA(American institute of certified public accountants) is a body who is saddled with the responsibility of ensuring ethics in the public accounting profession. AICPA is present in most parts of the world, it guides and ensures that its members perform their accounting functions with the most ethical standards,in order to preserve the integrity of the certified public accountants,the AICPA has certain code of professional conduct which helps to streamline the functions its members all over the world.