1-Diane is a CFO at We Do What We Want, Inc. She was just instructed by her boss, the CEO, to accelerate the recording of revenue into an earlier year to meet financial analysts' earnings projections. In order to meet the ethical standards of the accounting profession, Diane must be certain that she:

Blows the whistle on the financial wrongdoing

Reports the matter to the SEC

Informs the external auditors

Works through the chain of command within the company to avoid subordinating judgment

2-The House Subcommittee on Oversight and Investigations made its recommendations after looking into failures at each of the following companies except:

Enron

Penn Square Bank

Continental Illinois National Bank and Trust

ESM Government Securities

3-In Han, Kang & Lee, LLC, the main accounting issue being discussed with the client is:

Whether to record an expenditure of $2 million as a capital expense and not operating expense

Whether to write-down inventory by 20 percent

Whether to increase the value of inventory by 20 percent

Whether to inform the audit committee of fraud

4-George has been asked by his audit client to provide income tax services including tax planning. Prior to providing such services, George should be certain that:

He first completes the audit

The CEO pre-approves the performance of such services

He assesses threats to independence

The board of directors is informed about such services.