Sophie, the CFO of Slolum Ski Supplies, received a watch from one of her company's largest vendors, Colorado Ski Shoppe. She received the gift with a card congratulating her on Slolum's recent merger with another company. In determining whether accepting the gift would create a significant threat to her compliance with the American Institute of Certified Public Accountants Code, which factor should Sophie consider?

Question

Business

Tamara Grimes

19 December, 02:32

Sophie, the CFO of Slolum Ski Supplies, received a watch from one of her company's largest vendors, Colorado Ski Shoppe. She received the gift with a card congratulating her on Slolum's recent merger with another company. In determining whether accepting the gift would create a significant threat to her compliance with the American Institute of Certified Public Accountants Code, which factor should Sophie consider?

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Gustavo Franco · Answer 1

Answer: D. Whether the gift was reasonable in the circumstances

Explanation:

One of the code of American Institute of Certified Public Accountants is that members should maintain their integrity and be objective in carrying out their duties.

In the situation above, the major consideration should be whether or not the gift is appropriate and reasonable in the circumstances.