Question

Wanda is faced with an ethical dilemma. She knows her supervisor, the CFO, wants to accelerate the recoding of revenue to an earlier period to "make the numbers," but Wanda is convinced this would violate GAAP. If Wanda reasons at stage 4 of Kohlberg's model she is most likely to:

A. Make a decision based on what is in her own best interests.
B. Consider the interests of the stakeholders but decide based on what is in her best interests.
C. Refuse to record the transaction as desired by the CFO.
D. Inform the board of directors of the difference of opinion with the CFO.

Answer 1

The correct answer is C. Refuse to record the transaction as desired by the CFO.

Step-by-step explanation:

Wanda must refuse to register the transaction as, since Stage 4 is obedience to law and order. Therefore, if you do not comply with it, the information of the company may be damaged and she may lose her job.

The other options available do not go according to the Kohlberg model, because it must always act in accordance with the law and the legal provisions in force in the GAAP.