A management accountant's manager instructs her to reclassify revenue expenditure as capital expenditure so that a profit target is met. She raises it with the manager, who refuses to change his mind. What is the most appropriate next step?

Correct answer: A) Escalate the matter to a higher level of management or the audit committee, in line with the organisation's procedures

Explanation

Where a matter cannot be resolved with the immediate superior, the member should escalate it through the organisation's procedures, for example to the next level of management, internal audit or the audit committee. Complying would breach integrity. Going to the press is premature and resignation is a last resort after internal routes and advice have been exhausted.