Final answer:
A CPA's knowing misrepresentation of facts due to supervisor pressure breaches ethical standards which include maintaining integrity and objectivity. This can lead to serious professional and legal consequences.
Step-by-step explanation:
When a CPA knowingly misrepresents facts during professional services due to pressure from their direct supervisor, it raises serious ethical concerns. Various principles and standards are set in place to govern the professional conduct of CPAs, including objectivity, integrity, and professional competence. A CPA is expected to maintain a high level of professionalism and should never allow misrepresentation of facts, as it can lead to cheating, plagiarism, and even legal consequences. If faced with such pressure from a supervisor, a CPA must adhere to ethical guidelines and professional standards, and should report any unethical demands to the appropriate oversight bodies or seek guidance on how to proceed without compromising their professional responsibility.