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A CA-employee identifies pressure from a colleague to misstate inventory provisioning to meet quarterly numbers. The Code lists actions a CA may take to address pressure. Which of the following is NOT recognised by the Code as an appropriate action?
AEscalating to higher management, internal/external auditors or those charged with governance
BThreatening the pressuring individual with public disclosure to deter the conduct
CDiscussing the matter with the individual exerting pressure to seek to resolve it
DUsing the entity's ethics hotline or whistleblowing mechanism
Answer & Solution
Correct answer: B. Threatening the pressuring individual with public disclosure to deter the conduct
The Code endorses dialogue, internal escalation up to TCWG, use of ethics/whistleblowing mechanisms, consultation with the Institute or legal counsel, and as a structural safeguard, segregation/restructuring of duties. It does NOT endorse coercive counter-pressure such as threats of public disclosure.
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