Rosie Is the External Auditor of Texas Two Steps, a Privately-Owned

question 30

Multiple Choice

Rosie is the external auditor of Texas Two Steps, a privately-owned dance company in Texas. Rosie believes the owner of the company is skimming cash off the top. She approaches the owner who explains that the money will be replaced in the following month after he refinances his house. Rosie accepts the owner's explanation but reclassifies the expenditure as a receivable of the company from Rosie. Rosie's reasoning best reflects:

• A) Stage 1
• B) Stage 2
• C) Stage 3
• D) Stage 4

---

Definitions:

Principled

Having strong moral principles; showing a commitment to ethical practices and integrity.

Employee Retention

Strategies and practices employed by organizations to prevent valuable employees from leaving their jobs, focusing on satisfaction, engagement, and loyalty.

Outsourcing Expenses

Costs associated with contracting external organizations to perform certain business functions or processes outside the company.

Health Benefits

refer to the positive effects or outcomes on physical, mental, or social well-being that can result from activities, practices, or policies, such as exercise, healthy eating, or healthcare provision.