Lana Is a CPA and Works as an Internal Auditor

question 50

Essay

Lana is a CPA and works as an internal auditor for Dynamite, Inc. As she was performing a revenue timing test, for the internal audit schedule and the external auditors, she noticed that the Western division consistently kept the books open 4 days into the next quarter. Lana immediately reported to the Chief Internal Auditor; together they took the issue to the CFO and Controller. The CFO assured them that the issue would be resolved. It has been 90 days since the meeting. Lana is considering blowing the whistle but cannot decide who to tell and when.
What are the ethical issues of concern for Lana? What would you advise Lana to do, how, to whom and in what order, assuming she could qualify for a reward under Dodd-Frank?

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Definitions:

Performance Targets

Specific goals set for individuals or teams to measure and evaluate their efficiency and effectiveness.

Intrinsic Motivation

The drive to do something because it is inherently interesting or enjoyable, without needing external reward or recognition.

Extrinsic Motivation

Motivation driven by external rewards such as money, fame, grades, or praise, in contrast to intrinsic motivation, which is driven by internal personal satisfaction.

Call Centre

A centralized office used for the purpose of receiving or transmitting a large volume of requests by telephone, often related to customer service.