Exam 12: Duties As a Whistleblower

A new staff accountant who works for Elderweyer Corporation signed a two-year employment contract.This contract states that it "shall be renewed annually,at a salary increase of 15%,as long as the employee has complied with all companies policies throughout the year." One such company policy states that "employees may not participate as informants,and not materially assist others as informants,under any whistleblower program that pays compensation for information that may lead to adverse consequences for Elderweyer Corporation." This company policy is:

During the course of working as an internal auditor,Samir discovered that Kavita Corporation engaged in an illegal maneuver that lowered its reported Tax Expense on its financial accounting income statement and allowed it to receive an excessively high tax refund from the IRS.Samir potentially can recover a whistleblower reward:

If a person serves in a high-ranking financial reporting oversight role at a corporation,whistleblowing concerning accounting fraud is mandatory,in accordance with rules imposed by:

Under the Dodd-Frank Act,the SEC will pay financial rewards to:

Do you agree with the IRS policy that an informant receives a financial reward only if the amount recovered exceeds two million dollars?

When an external auditor suspects that personnel at an audit client have committed an illegal act,the auditor has a duty to:

If an auditor discovers a suspected illegal act involving financial statement presentation occurred at a client,the auditor has a duty to:

What categories of individuals may not recover a financial award under the Dodd-Frank Act?

The former CFO of a company gave the IRS information that resulted in the IRS collecting $1.2 million in unpaid taxes from this company.What is the maximum potential award that the IRS will give this informant?

To encourage reports of abusive securities law violations,a company maintains an internal whistleblower hotline.The hotline allows callers to identify themselves or to remain anonymous.A caller,who identified himself by name and company job title,recently informed the company that the actuarial assumptions underlying its expected employee turnover was wrong.The caller then left a second,more detailed message in which the accrued impact of this mistake on the company's Estimated Future Liability for Workers' Compensation clams was estimated.The caller's estimates were correct,but the amount of the error was determined by the company to have arisen due to an innocent mistake and the amounts were immaterial to the company's financial statements.Accordingly,under the Sarbanes-Oxley Act,the company:

"Pretextual retaliation" by an employer against an employee arises when:

A member of a corporation's accounting staff has determined that the CEO intentionally has recognized company revenues on certain sales contracts during the current year,even though these sales contracts do not involve the delivery of goods or services until next year.This accounting staff member is considering becoming a whistleblower. a. From the standpoint of deontology, what factors should this accountant consider? b. From the standpoint of consequentialism, what factors should this accountant consider?

In Europe,the mandatory duty to become an external whistleblower has been criticized on grounds of:

In which of the following situations will a corporate employee not be able to collect under the IRS Whistleblower Program?

The AICPA Code of Professional Conduct:

The IRS grants anti-retaliation protection to:

Under the Dodd-Frank Act,a whistleblower who reports original information that materially assists the SEC in recovering ill-gotten gains relating to securities violations is entitled to:

Which of the following are permitted to collect financial rewards as informants under the Dodd-Frank Act?

Which of the following is the most common type of whistleblower?

To qualify for financial rewards as a whistleblower under the Dodd-Frank Act,an informant must: