To Encourage Interested Parties to Report Fraudulent Accounting Practices,a Company

question 46

Multiple Choice

To encourage interested parties to report fraudulent accounting practices,a company maintains a whistleblower hotline.A person left a message on this hotline anonymously,but the company's Chief Regulatory Compliance Officer was able to identify this caller based on her voice and surrounding facts.As a result,the company may:

• A) Not disclose this caller's identify under any circumstances
• B) Not disclose this caller's identity if the caller is a company employee
• C) Not disclose this caller's identity until after the investigation concerning accounting fraud is completed
• D) Not disclose this caller's identity until after the investigation concerning accounting fraud is completed and resolved in the company's favor

---

Definitions:

Purchase Returns and Allowances

Concessions granted by sellers to buyers, involving the return of goods or issuance of allowances for unsatisfactory products or services.

Purchase Discounts

Reductions in the price of goods that a buyer is entitled to for early payment or volume purchases.

Freight-In

Costs associated with bringing inventory to a business location, typically included in the inventory cost.

GAAP

Generally Accepted Accounting Principles; the standard framework of guidelines for financial accounting used in any given jurisdiction, commonly the U.S.