Multiple Choice 1-16
Answer: A
Exercise 1.36
1. It is indicated that Gellar feels pressure from the CFO to improve her division’s
operations. This may stem from direct or indirect expectations. Additionally, she may
think there is a possibility for reward or a bonus if she is able to accomplish what is
expected of her.
2. A, F are acceptable, but are ethically questionable if done for the sole reason of making
operating earnings look better. B, C, D, E are unacceptable inaccurate.
3. Although difficult, Gellar should ignore the pressure to improve performance. She has a
duty to follow the IMA Statement of Ethical Professional Practice and should not move
away from this. If she continues to feel pressure, she should raise concerns with the
proper parties, either internally or externally if needed.